Loral Space &
Communications today announced that through its Loral
Orion subsidiary it has agreed with APT Satellite Company Limited,
Hong Kong (APT), to participate on a 50-50 basis in the ownership of
the APSTAR-V satellite scheduled to enter service in the third quarter
of 2003.

Loral’s capacity on the satellite will be designated Telstar 14.

Under manufacture by Space Systems/Loral, APSTAR-V is a
high-powered C/Ku-band hybrid satellite based on SS/L’s 1300 platform.
The new spacecraft will operate a total of 54 transponders, 38 C-band
and 16 Ku-band at 138 degrees East longitude. APSTAR-V will provide
Ku-band voice, video and data services to China, India and East Asia,
and broadbeam C-band services throughout the Asia-Pacific region,
including Australia and Hawaii. The new satellite also will be used to
carry entertainment and multimedia services for the main cities of
Asia to and from the U.S. through Hawaii.

The purchase price of $115 million, representing half of the total
cost of the satellite in orbit, for Loral’s 50% interest in the
satellite (19 C-band and 8 Ku-band transponders) will be paid in
increments through 2008. $57.5 million will be paid prior to launch
and funded primarily from the liquidation of existing launch deposits,
as well as cash on hand. The second $57.5 million will be paid in
increments ramping from $10 million to $17 million annually beginning
in the fourth quarter of 2005.

This payment schedule is designed to coincide with the anticipated
utilization on the satellite. Further, this transaction does not
change Loral’s projected cash and capital expenditure plans through

To ensure a timely launch of APSTAR-V in 2003, Loral and APT have
agreed that, if a U.S. license to launch the satellite on board a
Chinese Long March rocket has not been secured by September 30, 2002,
a Western launch provider will be used.

“This is a low-risk opportunity for Loral to add attractive
capacity over time, at very favorable terms,” said Bernard L.
Schwartz, chairman and chief executive officer of Loral. “With no
change to our funding requirements, we are increasing our revenue
potential earlier than expected. From an operating perspective, the
addition of Telstar 14 to Loral’s fleet supplements our existing
capacity over Asia, where we currently have one satellite, Telstar 10,
operating at a capacity utilization rate in excess of 75 percent.
Telstar 14’s wide coverage area is well suited to broadcast, broadband
and government opportunities from India to China to the U.S. via
Hawaii – all markets we’ve identified as having high growth

APT Satellite Company Ltd. is a major international satellite
operator in Asia, and is owned by a consortium of Asian companies in
Mainland China, Taiwan, Thailand, and Singapore. It provides high
quality satellite transponder and telecommunications services for
international and Asia-Pacific broadcasting and communications

Loral Space & Communications is a high technology company that
concentrates primarily on satellite manufacturing and satellite-based
services. For more information, visit Loral’s web site at

This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), provided, however, that
forward-looking statements made in connection with the current
exchange offer for outstanding shares of Series C or Series D
preferred stock do not fall within the provisions of Section 27A of
the Securities Act or Section 21E of the Exchange Act. 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, 2001, 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.