ROCKVILLE, MD. - February 3, 2006 - XTAR, LLC today announced that it has signed master service agreements (MSA) with two prominent government communications services companies: General Dynamics Satellite Communications Services Inc. and Stratos Mobile Networks Inc. In accordance with the MSAs, these companies will market and lease XTAR's X-band capacity to a wide range of U.S. or Allied government agencies. XTAR is a joint venture between Loral Space & Communications (NASDAQ: LORL) and HISDESAT.

The MSAs allow for each provider to complement its current satellite and terrestrial communications portfolio with high-power commercial X-band service. Government customers can now use one of these marketing partners of XTAR for bandwidth only or for customized communications solutions using a combination of resources.

"Adding these top-tier government marketing channels expands the reach of XTAR services and is a significant step forward for XTAR," said Denis Curtin, chief operating officer, XTAR LLC. "We intend to further expand our channel program pursuing opportunities with additional U.S. and Allied government entities."

In May 2005, XTAR was awarded a contract with the U.S. Department of State's Diplomatic Telecommunications Service Program Office (DTS-PO), Fairfax, Va., to provide X-band communications services to embassies and consulates in Africa and Asia. XTAR also provides service to the Spanish Ministry of Defense and Danish Armed Forces.

Using current U.S. military legacy equipment, test results from XTAR-EUR have consistently shown data rates that far eclipse current military X-band systems. With minor antenna and terminal modifications, XTAR has achieved data rates in excess of 100 Mbps using both left and right hand polarizations.

Built by Space Systems/Loral (SS/L), XTAR-EUR entered service in April 2005. The satellite carries twelve 72 MHz, high-power X-band transponders that provide coverage from Eastern Brazil and the Atlantic Ocean, across all of Europe, Africa and the Middle East to as far east as Singapore. XTAR-EUR is expected to provide service for nearly 20 years. Upon the launch of SPAINSAT in early 2006, XTAR will lease from HISDESAT eight 72 MHz X-band transponders on the satellite, to be designated XTAR-LANT, in order to provide greater flexibility and additional X-band services.

The XTAR-EUR satellite features traditional global beams as well as on-board switching and multiple steerable beams, allowing users access to X-band capacity as they travel anywhere within the footprint of the satellite. XTAR-EUR is designed to work with existing X-band terminals, as well as next generation X-band terminals that feature antennas smaller than 2.4 meters.

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. 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. 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. For more information, visit HISDESAT's web site at www.hisdesat.es.

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.