BEDMINSTER, NJ - October 4, 2004 - Loral Skynet today announced that it has signed an agreement with Microm de Colombia Ltda, to provide Loral's SkyReach(SM) IP access networking solution to Microm's broad customer base, which includes government organizations, enterprises and Internet cafes in Colombia and Latin America.

Microm will offer its customers SkyReach IP services under its "2-Way" brand, which will feature SkyReach's two-way Internet connectivity at speeds of 2 Mbps on the forward link and 512 Kbps on the return link. Microm's end-users can select from a choice of on-site equipment and various bandwidth options to meet specific networking needs, such as satellite interactive terminals supporting different data rates and networking features.

"Microm de Colombia is an important part of the Colombian and Latin American telecommunication markets, and with SkyReach, Microm will be able to provide its customers with extremely high access speeds while delivering a superior quality service," said Patrick Brant, president, Loral Skynet. "Whether an organization's sites are in well-served or remote areas, SkyReach will bring robust two-way communications services over satellite."

"Loral Skynet's reputation, 40 years of experience and ability to deliver communications services in Colombia and the entire Latin American region were major factors in our decision to select the SkyReach platform for delivering broadband Internet connectivity," said Alberto Ochoa Marulanda, chief executive officer and general manager of Microm de Colombia. "Microm's 2-Way IP service will provide high speed access to the Internet for organizations in Colombia and throughout Latin America -- regardless of location."

SkyReach, which operates in Latin America using Loral's Telstar 12 satellite, offers services that complement existing frame relay and multi-protocol label switching (MPLS) networks and enable efficient network management. SkyReach is optimized to provide a common IP platform on which to converge data, voice and video requirements. New SkyReach features, to be introduced later this year, will add improved routing capabilities for attached local area networks, higher data rates and enhanced quality of service management features.

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, in combination with its hybrid VSAT/fiber global network infrastructure, Skynet is a source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit the Loral Skynet web site.

In addition to being the parent company of Loral Skynet, Loral Space & Communications (OTC BB: LRLSQ) is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary. For more information, visit the Loral Space & Communications web site.

Microm De Colombia Ltda. is a wholesale company that has operated in the Latin American market for over 10 years, bringing integrated solutions to government, industry and enterprises through its authorized distribution channels with leading brands such as: Qbex, Lexmark, LG Electronics, Microsoft, Intel, Hewlett Packard, Panasonic, Samsung, Creative, Canon and others. Microm de Colombia works to provide its customers with the highest standards of quality and performance.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.