NEW YORK – October 22, 2003 – Loral Space & Communications (OTCBB: LRLSQ), today announced that the U.S. Bankruptcy Court for the Southern District of New York has authorized Loral subsidiary Space Systems/Loral (SS/L) to execute an existing contract with DIRECTV, Inc., as amended, to complete and deliver the DIRECTV 7S satellite.

The court also approved the binding authorizations to proceed (ATPs) issued to SS/L for the construction of two satellites for DIRECTV (DIRECTV 8 and DIRECTV 9S), and one satellite for PanAmSat Corporation (Galaxy 16). PanAmSat also has an option to order an in-orbit spare for one of its existing satellites from SS/L on terms to be agreed upon.

The aggregate value of the three new awards is in excess of $320 million. DIRECTV will make advance payments of $25 million on each of its two new satellite orders and PanAmSat will make an advance payment of $25 million on its new satellite order, for a combined non-refundable cash advance of $75 million. SS/L now has received orders for a total of four satellites this year.

Also, EchoStar Communications Corporation sought to purchase the nearly complete DIRECTV 7S, a transaction to which Loral was opposed. DIRECTV agreed to increase the total contract value for the construction of DIRECTV 7S by $25 million to approximately $165 million.

Space Systems/Loral is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. S
S/L is ISO 9001:2000 certified. For more information, visit www.ssloral.com.

Loral Space & Communications is a satellite communications company. Through its Skynet subsidiary, 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 satelli
tes and satellite systems through its Space Systems/Loral subsidiary. 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. 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, 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.