NEW YORK - March 15, 2006 - Loral Space & Communications Inc. (NASDAQ:LORL) announced today that for the year ending December 31, 2005, it is not considered an accelerated filer as defined by the Securities and Exchange Commission (SEC). In accordance with SEC rules, a non-accelerated filer is required to file its Form 10-K within 90 days after the end of its fiscal year.

In an unrelated matter, Loral also announced that in connection with the election of Michael B. Targoff as chief executive officer of Loral effective March 1, 2006, the NASDAQ Stock Market Inc. notified Loral on March 10, 2006, that the composition of the company's audit committee no longer complies with NASDAQ Marketplace Rule 4350.

Marketplace Rule 4350 requires that a listed company's audit committee be comprised of at least three independent directors. Prior to his election as CEO, Mr. Targoff was non-executive vice chairman of Loral and a member of Loral's audit committee. As CEO, Mr. Targoff is no longer an independent board member and, accordingly, he has resigned from the audit committee. The NASDAQ has provided Loral with a cure period until the earlier of the company's next annual shareholder's meeting or February 9, 2007, to regain compliance. The company is currently considering the composition of its audit committee and intends to appoint a third independent member to the committee within the specified cure period.

Loral Space & Communications (NASDAQ: LORL) is a satellite communications company. 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. Loral also 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.

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.