Loral Reports Third Quarter 1999 Financial Results - Company Financial Information

Cambridge Telcom Report, Nov 1, 1999

               LORAL SPACE & COMMUNICATIONS LTD
                       INCOME STATEMENTS
             (In millions, except per share data)
                          (unaudited)

                        Three Months Ended     Nine Months Ended
                          September 30,          September 30,
                        ----------------------------------------
                          1999     1998        1999         1998
                          ----     ----        ----         ----
Segment Revenues:
 Satellite manufacturing
  and technology     $   366.8  $  282.9  $   1,038.6  $    921.4
 Fixed satellite
  services (1)            86.9      67.1        249.4       185.6
 Data services (2)        22.3      13.1         56.6        25.0
                       -------   -------    ---------     -------
Operating segment
  revenues               476.0     363.1      1,344.6     1,132.0
 Intercompany and
  affiliate eliminations(128.8)    (73.5)      (313.1)     (298.9)
                       --------  --------   ---------     -------
Operating revenues   $   347.2  $  289.6  $   1,031.5  $    833.1
                       ========  ========   =========     =======

Segment EBITDA:
 Satellite manufacturing
  and technology     $    33.9  $   19.2  $      95.9  $     59.6
 Fixed satellite
  services (1)            49.6      48.9        144.7       129.9
 Data services (2)        (2.3)     (4.3)        (5.1)      (10.0)
 Corporate expenses       (8.6)     (9.7)       (25.3)      (24.4)
EBITDA for operating
 segments before
 development and
 start-up costs
 and intercompany
 and affiliate
 eliminations             72.6      54.1        210.2       155.1
Development and
 start-up costs:
  Data services (3)       (5.2)     (8.1)       (13.2)      (24.8)
  Global mobile
   telephony(4)          (41.3)    (45.9)      (120.0)      (98.2)
                       -------  ---------    ---------     ------
Total development
 and start-up costs      (46.5)    (54.0)      (133.2)     (123.0)
                       -------  ---------    ---------     ------

                          26.1       0.1         77.0        32.1

Intercompany and
 affiliate eliminations    9.8      19.8         39.1        18.4
                       -------  ---------    ---------     ------
EBITDA as reported        35.9      19.9        116.1        50.5

Depreciation and
 amortization            (44.5)    (39.5)      (123.8)      (95.3)
                       --------  ---------   ---------     ------
Operating loss            (8.6)    (19.6)        (7.7)      (44.8)

Interest and
 investment income
 (expense), net            0.3       0.6         (8.0)        2.5
Gain on investment (5)      --      35.0           --        35.0
                        -------  ---------   ---------     ------
Pretax income (loss)      (8.3)     16.0        (15.7)       (7.3)

Income tax benefit (6)    27.7       4.0         27.9        10.6
                        -------  ---------  ---------      ------

Income after taxes        19.4      20.0         12.2         3.3
Minority interest/Equity
 in affiliate losses     (31.9)    (30.7)      (101.3)      (88.4)
                        -------  ---------   ---------     ------
Net loss                 (12.5)    (10.7)       (89.1)      (85.1)

Preferred dividends      (11.6)    (11.6)       (34.8)      (34.8)
                        -------  ---------   ---------     ------

Net loss - common
 shareholders        $   (24.1) $  (22.3)   $  (123.9)  $  (119.9)
                        =======  =========  ==========  =========

Weighted shares
 outstanding - Basic
 and Diluted             290.4     289.0        290.1       268.0
                        =======  =========  =========   =========

Loss per share - Basic
 and Diluted        $    (0.08)  $ (0.08)    $  (0.43)  $   (0.45)
                        =======  =========   =========  =========