NEW YORK – June 30, 2003 – Loral Space & Communications (NYSE: LOR)
announced today that it has collected approximately $55 million from
Intelsat representing an acceleration of a receivable for agreed-upon
milestone performance payments. Called orbital incentives, these payments
were to have been paid by Intelsat to Loral over a 12-year period based on
the continued good performance of the Series VII and Series IX satellites
manufactured for Intelsat by Loral.

Loral Space & Communications is a satellite communications company. It owns
and operates a global fleet of telecommunications satellites used by
television and cable networks to broadcast video entertainment programming,
and by communication service providers, resellers, corporate and government
customers for broadband data transmission, Internet services and other
value-added communications services. Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems for
commercial and government applications including direct-to-home television,
broadband communications, wireless telephony, weather monitoring and air
traffic management. 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 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.