HERNDON, Va. and BEDMINSTER, N.J. - June 14, 2005 - iDirect Technologies, a leading hardware supplier that markets the fastest, most reliable two-way satellite-based broadband access hubs, and Loral Skynet, a leading satellite communications company, today announced a joint demonstration of a new wireless broadband connectivity solution at CommunicAsia 2005 in Singapore. The new solution carries broadband traffic over Loral Skynet's SkyReachSM IP-based satellite communications service, to iDirect remote equipment, connecting end-users to the Internet via WiFi protocol.

iDirect's new WiFi over satellite solution, named Global Edge Connect, will allow Loral Skynet to deliver service to areas where broadband terrestrial connections are unavailable, take too long to implement, and are too costly. Combined with an iDirect remote satellite router, Loral Skynet will utilize its worldwide satellite coverage to deliver fixed-network backhaul over its SkyReach IP service to locations where base stations are located.

Network backhaul is typically the biggest challenge for a wireless ISP, especially if the provider is not the owner of the last-mile infrastructure. The resulting WiFi hot-spot-in-a-box solution requires no installation or fixed-line connection and allows a wireless ISP (particularly a market entrant with no last-mile fixed network assets) an extremely rapid infrastructure rollout.

"WiFi access, enabled by SkyReach, is an ideal solution that we will now be able to offer service providers to deliver convenient, reliable, and economical direct access broadband services to villages, office parks, school campuses, harbors, ISPs, governments and enterprises," said Jon Kirchner, vice president of global marketing for Loral Skynet. "Not only will this SkyReach-based WiFi solution allow easier, more convenient connectivity for ultimate end users, but also it opens a number of business opportunities for our service provider customers, while creating a very natural extension of the Loral satellite fleet."

"We are very excited about this solution," said John Kealey, President and CEO of iDirect Technologies. "The iDirect remote satellite router's ability to deliver speeds up to 18 Mbps, combined with iDirect's support for real time applications like voice and video allow us to deliver broadband connectivity that matches the quality and performance of digital terrestrial circuits. Global Edge Connect will extend this service resulting in a user experience comparable to traditional landline service, supporting any end user application at a very competitive rate."

iDirect's cost-effective satellite access solution with terrestrial quality of service has allowed iDirect to achieve broad acceptance as the vendor of choice for the backhaul of complementary wireless solutions such as WiFi and cellular. The iDirect remote VSAT is a simple "one box" solution that provides enterprise-class IP transport and traffic management over satellite networks. The iDirect remote router is a compact set-top terminal incorporating a satellite modem, IP router, TCP optimization over satellite, 3DES encryption, and QoS/prioritization all in one easy to deploy solution. At the same time, it delivers the highest data throughput speeds in the industry today - 18 Mbps downstream, and 4.2 Mbps upstream.

About iDirect Technologies

iDirect Technologies designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was included in the Deloitte & Touche Technology Fast 500 list of the fastest-growing U.S. technology companies and one of Virginia's top 50 fastest growing technology companies for both 2003 and 2004. iDirect operates its corporate headquarters in Herndon, Virginia and has regional offices in Europe, Asia, and covering Latin America. Additional information is available on the company website at www.idirect.net.

About Loral Skynet

A pioneer in the satellite industry, Loral Skynet delivers 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 meets the needs of companies around the world 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.

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. Under Loral's proposed Plan of Reorganization, the company's existing common and preferred stock will be cancelled and no distribution will be made to the holders of such stock. A hearing for the court to consider confirmation of the Plan is currently scheduled for July 13, 2005. 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, 2004, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.