Loral Skynet and Hearst-Argyle Television Begin Construction of a State-of-the-Art Content Delivery Network

Business Wire, Sept 19, 2002

Business Editors

BEDMINSTER, N.J.--(BUSINESS WIRE)--Sept. 19, 2002

Loral Skynet, a subsidiary of Loral Space & Communications (NYSE:LOR), today announced the start of construction of Hearst-Argyle Television's (NYSE:HTV) master hub station in Orlando, Florida, a further step in the long-term professional services agreement for the creation of a content delivery and digital satellite newsgathering network for Hearst-Argyle.

Loral Skynet has completed the planning and design of the initial network, and is leading a multi-vendor project team to provide Hearst-Argyle with antennas, digital video encoding equipment, facility management systems, and data channel equipment to communicate with remote stations and manage content.

This network will support digital satellite news gathering (DSNG) operations, and provide Hearst-Argyle with a platform for centralized content distribution to its group of stations.

Completion of the delivery network -- including the hub in Orlando and four other television stations: KCRA/KQCA Sacramento, California; WPBF West Palm Beach, Florida; WCVB Boston, Massachusetts; and WGAL Lancaster, Pennsylvania -- is expected by the first quarter 2003. Extending the network to other stations will follow.

Martin Faubell, vice president of engineering, Hearst-Argyle Television, said, "As a leader in DSNG, Loral Skynet has provided us with an effective, independent platform to support our stations' competitive drive for live news. In addition, this same platform will support centralized content distribution of national spots and syndication across our geographically diverse group of stations."

"With the creation of a customized network, Loral Skynet has given Hearst-Argyle a comprehensive solution that will satisfy its special content management needs," said Bob Czochanski, director, Skynet Professional Services. "Working closely with the customer, we have planned and designed a network that serves the DSNG needs of Hearst-Argyle today, and enables a smooth transition to centralcasting functionality in the future."

Loral Skynet's DSNG service provides Hearst-Argyle with full-time and occasional transponder capacity on Telstar 6 and a team of operations professionals that manages the service. Skynet also provides satellite access management for DSNG operations from Skynet's Hawley, Pennsylvania earth station.

The Orlando hub will receive and redistribute national spot advertising and syndication programming for Hearst-Argyle stations. Developed jointly by Loral Skynet and Hearst-Argyle, the hub will also provide other significant opportunities for efficient content sharing and regionalization, and it will serve as a centralized facility for disaster recovery.

Hearst-Argyle Television, Inc. owns 24 television stations, and manages an additional three television and two radio stations, in geographically diverse U.S. markets. The company's television stations reach about 17.5% of U.S. TV households, making it one of the two largest U.S. television station groups not primarily aligned with a single network, as well as one of the seven largest television groups overall as measured by audience delivered. For more information, visit Hearst-Argyle's Web site at www.hearstargyle.com.

Loral Skynet of Bedminster, New Jersey is a leading satellite communications services provider that offers its customers a complete portfolio of satellite transponder, networking and professional services from one source. Skynet operates one of the world's largest and fastest-growing fleets of telecommunications satellites, providing high-volume communications and data transmission services to broadcasting, cable TV, Internet and industrial companies around the world. Through its CyberStar unit's global IP multicast network and fiber assets, Skynet provides high-quality data, voice, video and Internet backbone connectivity services to multinational enterprises and service providers, including carriers and Internet service providers. Loral Skynet's fleet of seven satellites covers the globe and three more satellites are in the late stages of construction. For more information on Loral Skynet, visit www.loralskynet.com.

Loral Space & Communications is a high technology company that concentrates primarily on satellite-based services and satellite manufacturing, including broadcast transponder leasing and value added services, domestic and international corporate data networks, broadband data transmission and Internet services. 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 Ltd. 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 by the company 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 which are described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2001, entitled "Certain Factors That May Affect Future Results," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.