Intelsat, Ltd.
today announced that it has advanced to the next phase in its effort
to acquire the North American satellite assets of Loral Space &
Communications Corporation. Intelsat was notified earlier today that
it is the winner of the auction conducted by Loral under a bankruptcy
court-supervised auction process. Intelsat was named the stalking
horse bidder for the sale of the assets under section 363(b) of the
U.S. Bankruptcy Code in connection with Loral’s 15 July 2003 filing
for bankruptcy protection.

The sale process is scheduled to conclude this week, when the U.S.
Bankruptcy Court for the Southern District of New York is expected to
approve the sale of the assets to Intelsat.

Intelsat chief executive officer Conny Kullman stated, “We now
await the judge’s approval of the sale of the assets. If successful,
we will move to complete the regulatory process quickly and close the
transaction as soon as possible, providing a smooth and efficient
transition for the customers on these satellites.”

About Intelsat

Intelsat, Ltd. offers telephony, corporate network, video and
Internet solutions around the globe via capacity on 25 geosynchronous
satellites in prime orbital locations. Customers in approximately 200
countries rely on Intelsat satellites and ground resources for quality
connections, global reach and reliability. For more information, visit
www.intelsat.com.

Note: Some of the statements in this news release constitute
forward-looking statements that do not directly or exclusively relate
to historical facts, including statements relating to the expected
schedule for conclusion of the auction process and the expectation
that the bankruptcy court will approve the sale of Loral’s North
American satellite assets to Intelsat, as well as statements relating
to Intelsat’s intention to complete the regulatory process quickly and
close the transaction as soon as possible if the sale of the assets to
Intelsat is approved. The Private Securities Litigation Reform Act of
1995 provides a “safe harbor” for certain forward-looking statements
as long as they are identified as forward-looking and are accompanied
by meaningful cautionary statements identifying important factors that
could cause actual results to differ materially from the expectations
expressed or implied in the forward-looking statements. When used in
this news release, the words “will,” “expect,” and “believe” and other
similar expressions are intended to identify forward-looking
statements. The forward-looking statements made in this news release
reflect Intelsat’s intentions, plans, expectations, assumptions and
beliefs about future events and are subject to risks, uncertainties
and other factors, many of which are outside of Intelsat’s control.
These factors could cause Intelsat’s actual results to differ
materially from the expectations expressed or implied in the
forward-looking statements and include known and unknown risks. In
connection with any proposed strategic transaction, known risks
include, but are not limited to, the failure to complete a planned
transaction or the need to modify aspects of the transaction in order
to obtain regulatory approvals; the inability to retain and continue
to serve successfully customers gained in connection with the
transaction; the inability to execute integration strategies
successfully or to achieve planned synergies or business goals; and
the incurrence of unexpected costs of integration. Known risks also
include, but are not limited to, insufficient market demand for the
services offered by Intelsat; the quality and price of services
offered by Intelsat’s competitors; the risk of delay in implementing
Intelsat’s business strategy; Intelsat’s access to sufficient capital
to meet its operating and financing needs; changes in laws and
regulations; political, economic and legal conditions in the markets
Intelsat is targeting for communications services or in which Intelsat
operates; general economic conditions; and a change in the health of
Intelsat’s satellites or a catastrophic loss occurring during the
in-orbit operations of any of Intelsat’s satellites. More detailed
information about known risks is included in Intelsat’s annual report
on Form 20-F for the year ended December 31, 2002 on file with the
U.S. Securities and Exchange Commission. Because actual results could
differ materially from Intelsat’s intentions, plans, expectations,
assumptions and beliefs about the future, you are urged to view all
forward-looking statements made in this news release with caution.
Intelsat does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.