BEDMINSTER, NJ - October 20, 2004 - Loral Skynet today announced that it has signed an agreement with Hawaii Pacific Teleport (HPT), a provider of teleport services between North America and Asia, to provide capacity on Loral's recently launched Telstar 18 satellite.

"The broad reach and power of Telstar 18 makes it a premier satellite to offer our customers with feeds coming into or out of Asia," said Vince Waterson, vice president of business development, Hawaii Pacific Teleport. "In addition to our regular digital and analog turnaround services, HPT plans to use Telstar 18 for its public switched videophone network (PSVN) to provide low-cost videoconferencing services throughout Asia for a new customer."

"Skynet's growing relationship with Hawaii Pacific Teleport is emblematic of how important Asia is for our two companies," said Patrick K. Brant, president, Loral Skynet. "With Telstar 18 and the already orbiting Telstar 10 at 76.5 East, customers around the world can now choose from two satellites that offer excellent coverage of Asia and links to the Americas and Europe through Skynet's global network."

Telstar 18, located at 138 degrees East longitude, is a powerful Space Systems/Loral-built 1300 satellite whose extensive coverage stretches from Central Asia through the Indian sub-continent, China, Korea, Japan, South East Asia, Australia and Hawaii. In addition to hosting intra-regional applications, Telstar 18 offers highly reliable and low cost connectivity to and from the US mainland via the satellite's Hawaiian coverage and Skynet's fiber network that connects Hawaii with North America.

HPT is located on the southwest shore of the island of Oahu, Hawaii, from where it connects global businesses through a network of satellites and fiber optic cables reaching from North America as far west as the Indian subcontinent. Unlike American mainland teleports, HPT can 'see' all the Asia-Pacific orbital slots between 128 degrees East and 165 degrees East. This coverage enables HPT to serve customers located as far West as Pakistan and in all countries eastward to Hawaii plus customers in Australia, New Zealand and many Pacific Islands.

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, companies around the world count on Skynet to meet their needs for broadcast and data network services, Internet access, IP and systems integration 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 at www.loralskynet.com.

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.

Note to Editors: Telstar 18 carries a total of 54 active transponders, of which sixteen are high-power Ku-band transponders and thirty-eight are C-band transponders. In consideration for funding a portion of the satellite project's cost, APT Satellite Company Limited, Hong Kong, will initially use 68.5 percent of Telstar 18's transponder capacity for APSTAR-V services. The number of transponders used by APT will be reduced over time, ultimately to 54 percent of the satellite's capacity.

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.