ROCKVILLE, MD. - January 3, 2006 - XTAR, LLC today announced that it has named Larry D. Haughey vice president, government markets. Mr. Haughey will be responsible for the sales and marketing of XTAR's unique X-band services to the U.S. government's commercial and military sectors, including the Departments of Defense, State and Homeland Security. He will report to Denis Curtin, chief operating officer of XTAR. XTAR is a joint venture between Loral Space & Communications (NASDAQ: LORL) and HISDESAT.

Mr. Haughey was previously executive sales branch manager for MCI where he was responsible for sales of voice, data, IP, and other specialized services to the Defense Information Systems Agency (DISA), the Office of the Secretary of Defense (OSD), Joint Programs and DoD International Services.

Before joining MCI, Mr. Haughey was director of RBOC services at Teleglobe International, where he was responsible for sales to the regional bell operating companies (RBOC) and independent telephone companies. Mr. Haughey also served in similar roles at IDB, Contel ASC and COMSAT. Mr. Haughey began his career in the government communications field in 1981 at the Defense Communications Agency (DCA), now known as DISA.

Mr. Haughey received his bachelor's degree in business administration and accounting from Southern Illinois University and completed the U.S. Navy's Defense Cost and Price Analysis and the U.S. Army's Management of Defense Acquisition Contracts programs. He is a veteran of the U.S. Army.

XTAR, LLC, headquartered in Rockville, Md., is a new satellite communications company committed to serving the long-haul communications, logistics and infrastructure requirements of the U.S., Spanish and allied governments. XTAR operates the XTAR-EUR satellite, which provides X-band services from Eastern Brazil and the Atlantic Ocean, across all of Europe, Africa and the Middle East to as far east as Singapore. The company is a joint venture between Loral Space & Communications, which owns 56 percent, and HISDESAT, which owns 44 percent. For more information, visit XTAR's web site at http://www.xtarllc.com.

HISDESAT Servicios Estrategicos S.A. is a Spanish company headquartered in Madrid. HISDESAT's aims are the acquisition, operation and commercialization of Government-oriented space systems, beginning with satellite communications in the X- and Ka-band frequencies. HISDESAT is owned jointly by HISPASAT, S.A., the Spanish commercial satellite services company, INSA and the leaders of Spain's space industries: EADS-CASA Espacio, INDRA and SENER. HISDESAT will provide enhanced capabilities, including Ka-band, for Spain's defense applications.

Loral Space & Communications is a satellite communications company. Its Space Systems/Loral division is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. Through its Loral Skynet division, it owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services.

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 Inc. 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 from time to time 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. Many of these factors and conditions are also described in the section of the annual report on Form 10-K for the fiscal year ended December 31, 2004 of Loral Space & Communications Ltd. (the predecessor registrant to the company) ("Ltd."), entitled "Commitments and Contingencies," and the company's and Ltd.'s other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.