Loral Skynet Establishes Business Television Network For Jaguar Car Dealerships in the United Kingdom

Skynet BTV Network Will Enable Live Broadcasts to 100 Jaguar Dealerships, in Addition to Current 130-Site Land Rover Network

BEDMINSTER, N.J., June 28 -- Loral Skynet today announced that it has signed an agreement with Jaguar Cars UK to provide a business television network covering all 100 Jaguar dealerships in the United Kingdom. This new network is in addition to Loral Skynet's previous agreement with Jaguar's sister company, Land Rover UK, which provides for business television services to 130 Land Rover dealerships throughout the UK. Jaguar Business TV will broadcast training and communications programming over a secure video and data network developed by Skynet.

"Loral Skynet's end-to-end business television application enables the quick dissemination of important communications throughout the Jaguar and Land Rover dealership networks in the UK," said Terry Hart, president, Loral Skynet. "The advantages inherent in Skynet's satellite-based broadcast capability combined with its business television and IP networking expertise allow enterprises to effectively communicate among remote offices without restrictions due to geography or distance from terrestrial communications."

Jaguar Business TV will be distributed across the UK using Loral's Telstar 12 satellite, located at 15 degrees West longitude. Skynet will provide the communications infrastructure, including on-premise dishes and receiving equipment, and maintenance services to each dealership.

Many companies use Loral Skynet's business television and IP-based content delivery services for the distribution of media-rich information. Loral Skynet's long history of providing business television services to such globally recognized companies as Jaguar and Land Rover has made it an industry leader in delivering corporate content and media services. Loral Skynet's new IP-based SkyReach(SM) services are the latest evolution of its service offerings to corporate clients.

Jaguar and Land Rover are both brands of the Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., which manufactures and distributes automobiles in 200 markets across six continents. With more than 327,000 employees worldwide, the company's core and affiliated automotive brands also include Aston Martin, Ford, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company celebrated its 100th anniversary on June 16, 2003.

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

In addition to being the parent company of Loral Skynet, Loral Space & Communications (BULLETIN BOARD: LRLSQ) 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 the Loral Space & Communications web site.

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. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.