ROCKVILLE, MD and FALLS CHURCH, VA - April 10, 2006 - XTAR, LLC and Arrowhead Global Solutions, Inc. today announced the signing of a master service agreement (MSA) that will allow Arrowhead to market and lease X-band capacity on XTAR's XTAR-EUR or XTAR-LANT satellites to a wide range of U.S. and allied government agencies. XTAR is a joint venture between Loral Space & Communications (NASDAQ: LORL) and HISDESAT.

"Our agreement with Arrowhead further expands XTAR's network of valuable sales channels to reach a multitude of agencies within the US and other allied governments," said Denis Curtin, chief operating officer, XTAR, LLC. "Using existing Arrowhead contract vehicles, government customers can now procure X-band capacity to extend their current satellite communications capabilities."

Government customers can acquire X-band capacity for use with existing infrastructure, or for customized solutions using a combination of resources that includes X-band. With both fixed and steerable beams, XTAR-EUR and XTAR-LANT cover a wide geographic area from Denver, across the Atlantic, Europe and the Middle East to as far as Singapore.

"Arrowhead consistently strives to package strong service offerings for use by the agencies of the U.S. and other allied governments and, together with XTAR, we are now able to provide a unique, and highly desirable X-band component to our array of services," said Mary Ann Elliott, chairwoman and chief executive officer, Arrowhead Global Solutions, Inc. "Commercially available X-band is a significant step forward in satisfying the ever-growing demand for bandwidth by the U.S. and other allied governments and we are pleased to be working together with XTAR to offer this unique service."

Arrowhead provides turn key end-to-end networks that include the design, installation, implementation, operations and maintenance (O&M) and positive monitoring of XTAR space segment through a secure Network Operations Center providing U.S. Government end users with assured classified messaging. By leveraging the thin-client capability of Arrowhead's NYTOR information technology products, customers can operate securely from anywhere on the globe.

XTAR-EUR and XTAR-LANT feature 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. They are designed to work with existing X-band terminals, as well as next generation X-band terminals that feature antennas smaller than 2.4 meters.

Using current U.S. military legacy equipment, XTAR-EUR has 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.

XTAR, headquartered in Rockville, Md., is 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 Servicios Estrategicos S.A. (HISDESAT) of Madrid, which owns 44 percent. For more information, visit XTAR's web site at http://www.xtarllc.com.

Headquartered in Falls Church, Va., Arrowhead Global Solutions Inc. is a leading provider of satellite and terrestrial telecommunications, professional services, server-based communication networks, and integrated information technology solutions. Arrowhead provides bandwidth and engineering services to U.S. government users through a variety of contract vehicles. Arrowhead established itself as a major system integrator through the development of the DOD Commercial Teleport Program, building 22 large C- and Ku-band ground stations at six locations around the world. Arrowhead currently has over 1 GHz of commercial space capacity under contract for a variety of end users. Known for quality work, integrity, excellence and accountability, Arrowhead's guiding motto is "On Target with Quality Solutions." For more information visit: http://www.arrowhead.com.

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 described in the section of the annual report on Form 10-K for the fiscal year ended December 31, 2005 of Loral Space & Communications Inc., entitled "Risk Factors," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.