NEW YORK - June 20, 2006 - Loral Space & Communications Inc. (NASDAQ:LORL) announced today that Loral Skynet Corporation will pay the full amount of the current interest payment due on its Loral Skynet 14% Notes, $11.5 million or $91.00 per Note, in cash. Loral Skynet also will pay the current dividend on its 12% Series A Non-Convertible Preferred Stock, $15.6 million or $15.60 per share, in accordance with the formula governing the security, determined to be 10.8% in cash and 89.2% in PIK shares. Any fractional PIK shares will be rounded down, with the remainder paid in cash. After issuance of the PIK shares, there will be $213.9 million of Loral Skynet Preferred Stock outstanding.

The payment period for the Loral Skynet Notes and the Loral Skynet Preferred Stock covers from November 21, 2005, the issuance date of both securities, through July 15, 2006. Both are payable on July 14, 2006, to holders of record as of the close of business on July 3, 2006.

The interest determination was made in accordance with the terms of the Indenture dated as of November 21, 2005 governing the Loral Skynet Notes, and the dividend determination was made in accordance with the terms of the Preferred Stock contained in the Restated Certificate of Incorporation of Loral Skynet Corporation and Exhibit A thereto. These documents are filed as exhibits to Loral's November 23, 2005 Form 8-K, filed with the Securities and Exchange Commission and available on Loral's web site, www.loral.com.

Loral Space & Communications 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. For more information, visit Loral's web site at www.loral.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 under the caption "Risk Factors" in each of the company's annual report on Form 10-K for the fiscal year ended December 31, 2005 and its quarterly reports on Form 10-Q for subsequent periods. The reader is specifically referred to these documents, as well as the company's other filings with the Securities and Exchange Commission.