Loral Skynet Satellite Services Selected by Boeing for Aircraft Internet Service; Airline Passengers Will Have Real Time Data and Video Connectivity In-Flight - Company Business and Marketing

Cambridge Telcom Report, May 1, 2000

Loral Skynet announced Thursday that the Boeing Company has selected Loral's Telstar satellite fleet to be part of a new high speed data communication service to commercial airline passengers. Boeing's new Connexion by Boeing service will provide airline passengers with real time, high speed, access to the Internet, e-mail, television, news and other information allowing them to stay connected during flight. Boeing will utilize the high-power Telstar satellites and their comprehensive coverage to provide these services.

"Connexion by Boeing is truly a cutting edge service, and Loral Skynet is very enthusiastic about playing an integral role in this offering," commented Terry Hart, president of Loral Skynet. "This further expands Loral Skynet's role as a major player in the video and Internet business."

Under this agreement, Boeing will lease multiple transponders on Loral Skynet's Telstar satellites, including Telstar 6, located at 93(degree) West Longitude. Joan Byrnes, vice president of sales and marketing for Loral Skynet stated, "As the Connexion by Boeing service grows, the need for satellite capacity will grow with it. The Loral Global Alliance and its extensive fleet are prepared to provide Boeing with the additional worldwide service as it grows in the future."

Loral Skynet of Bedminster, N.J., a subsidiary of Loral Space & Communications, is a leading satellite communications services provider that operates the Telstar satellite fleet, which provides C-band and Ku-band coverage over the continental United States, Hawaii, Alaska, Puerto Rico, and the Caribbean, as well as Europe, Asia, South America, northern Africa and South Africa. Customers lease transponder capacity to distribute network television programming, to collect live video feeds for the reporting of news and events, to provide Internet connectivity to Internet Service Providers and other users, and to offer direct-to-home and pay-per-view programming, distance learning, educational, and other business television services. Loral Skynet also provides technical consulting, as well as tracking, telemetry, and control of satellite fleets for a wide variety of customers. For more information, visit Loral Skynet's web site at www.loralskynet.com.

Loral Skynet is also a member of the Loral Global Alliance, which is a worldwide marketing venture formed by Loral Space & Communications. The Alliance is comprised of Loral Skynet, Satelites Mexicanos S.A. de C.V. (Satmex), Europe*Star and Skynet do Brasil forming a worldwide network of satellite operating companies that provide global satellite solutions, while focusing on the local and inter-regional needs within its coverage regions.

Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services and international direct-to-home satellite services. For more information, visit Loral's Web site at www.loral.com.