Loral Skynet and The Andrita Studios, Inc. to Develop Digital Programming Platform on Telstar 7

Business Wire, April 3, 2003

Business Editors

BEDMINSTER, N.J.--(BUSINESS WIRE)--April 3, 2003

MCPC Platform Allows Cable Programmers and Operators Easier

Distribution and Reception of Channels

Loral Skynet, a subsidiary of Loral Space & Communications (NYSE: LOR), today announced that it has signed an agreement with The Andrita Studios, Inc., Los Angeles, Calif., to create a new digital cable distribution platform on Loral's Telstar 7 satellite.

The Loral Skynet and Andrita Studios platform will deliver what cable operators have long preferred: that new digital networks be delivered on platforms with other popular digital services. The technology, known as multiple-channels-per-carrier or MCPC, will allow distribution of multiple digital channels or networks through a single transponder.

Loral Skynet's MCPC platform will be based on Motorola's DigiCipher(R) II compression technology and anchored by a suite of Playboy TV programming, originating from the new Andrita Studios facility. The Andrita Studios is a 106,000 square foot facility featuring state-of-the-art sound stages, production facilities and origination and uplinking facilities for up to 24 cable networks. Twelve Playboy TV and Spice Digital Networks are currently anchor tenants at The Andrita Studios and comprise a strong digital neighborhood on Telstar 7 that is distributed to virtually every cable MSO as well as DirecTV and EchoStar.

"As the satellite universe continues to grow its programming options, we're pleased to continue expanding our relationship with Loral Skynet to develop more advanced and efficient means of delivery," said Jeff Jenest, general manager of The Andrita Studios. "This MCPC platform, which can only be offered by satellite, was developed with both the programmer and the cable operator in mind in order to simplify and streamline the way we distribute a widely varied programming menu."

Terry Hart, president, Loral Skynet stated, "Cable operators prefer that new digital networks be grouped with other popular digital services. This allows for efficient use of their facilities by enabling the distribution of multiple digital networks directly to viewers' set top boxes and providing programmers with proven anchor content and a competitive edge."

Telstar 7, ideally located in the heart of the popular cable neighborhood at 129 degrees West longitude, is the first satellite in what Loral Skynet has named to its Cable Zone(TM). Loral Skynet's cable-focused services will expand with the addition of Telstar 13 later this year, to be located at 121 degrees west Longitude. Loral Skynet will use Telstar 13's 24 C-band transponders to complement its Telstar 7 satellite, allowing the company to offer greater service capabilities and to provide enhanced backup to customers in the cable industry across the US.

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior quality of service and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar and Loral Global Alliance satellite fleets, its established hybrid VSAT/fiber global network infrastructure, Skynet offers a unique, single source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit www.loralskynet.com.

Loral Space & Communications is a satellite communications company. In addition to its Skynet satellite services business, Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary. For more information, visit 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 have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2002, 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.