ChinaSat to Become CyberStar Ground Services Agent in the Chinese Market

Loral CyberStar, a global provider of
high-quality data, video, content, and Internet services, today announced
that it has signed an agreement with the China Telecommunications Broadcast
Satellite Corporation (ChinaSat), the state-owned enterprise that provides
satellite telecommunications broadcast services throughout China. ChinaSat
will offer CyberStar’s entire range of services including the ClearStream
broadband services. Loral CyberStar is a subsidiary of Loral Space &
Communications (NYSE: LOR).

“Through our partnership with ChinaSat, CyberStar now has immediate ability
to sell its unique IP-based Internet services to customers throughout the
Chinese market,” said Neil Bauer, president, CyberStar. “We are very pleased
to initiate this relationship with ChinaSat and look forward to addressing a
sophisticated Chinese market that demands high-quality desktop solutions.”

Dedicated to providing advanced, reliable, excellent, and fast
telecommunications services throughout China, ChinaSat will market CyberStar
products to government agencies, national corporations and multinational
enterprises. ChinaSat will also become CyberStar’s in-country ground
services agent, working to secure necessary licensing authorizations,
conducting site surveys, procuring satellite capacity, and installing and
testing customer site equipment.

“We entered into this agreement with CyberStar because of its reputation for
quality satellite and fiber-based services and its proven track record of
success in the international marketplace,” said Zhou Zehe, president,
ChinaSat. “CyberStar’s expertise will ensure that we can build the best
possible satellite and fiber infrastructure for our customers. CyberStar’s
ability to broadcast high-quality data, video and audio will ensure that our
customers receive the first-rate broadband transmissions that their
businesses demand, from training needs to corporate communications to
content distribution.”

With CyberStar’s services, ChinaSat has the ability to offer enterprises a
private, satellite-based network that can bypass most of the terrestrial
Internet to avoid congestion and deliver broadband applications to multiple,
geographically dispersed sites regardless of the existing infrastructure.

ChinaSat also will offer its customers CyberStar’s ClearStream product
suite, allowing organizations operating across China’s vast geographical
regions to provide standardized and comprehensive corporate communications
and training services.

ClearStream Live, CyberStar’s flagship streaming media application, uses
open standards digital video broadcast (DVB) technology, a standard Web
browser and the Windows Media Player, to deliver high-quality video and
CD-quality audio communications live to the desktop or conference room
monitor. By multicasting 300 Kbps video streams onto the local area network
(LAN), ClearStream Live offers a bandwidth-efficient method of viewing live
video and enables enterprises to reliably deliver high impact,
time-sensitive live communications to multiple sites without fear of
unpredictable video performance due to Internet congestion.

About ChinaSat

ChinaSat, founded in 1985, is the first state-owned enterprise to manage the
telecommunications satellite business and provide satellite
telecommunications broadcast services in China. Now under the leadership of
the Ministry of Information Industry, People’s Republic of China, ChinaSat
is charged with the responsibility to develop multimedia communications
systems, broadband high-speed data transmission systems, rural telephone
systems, and domestic mobile satellite telecommunications.

About Loral CyberStar

Loral CyberStar is a leading satellite provider of high-quality data, voice,
video, and Internet backbone delivery to multinational enterprises and
Internet service providers (ISPs). Using its global IP multicast network,
CyberStar quickly and efficiently distributes multimedia and data-intensive
content around the world via innovative high-speed satellite links that
avoid network congestion, Internet bottlenecks, and underdeveloped
infrastructure. Regardless of geographic location, time differences, or
“last-mile” barriers, CyberStar can deliver data, broadband, streaming
media, web-casts, and Internet backbone connectivity that meet end-user
expectations. For more information, visit CyberStar’s Web site at
www.cyberstar.com.

About Loral Space & Communications

Loral Space & Communications (NYSE: LOR) is a high technology company that
concentrates primarily on satellite manufacturing and satellite-based
services, including broadcast transponder leasing and value-added services,
domestic and international corporate data networks, Internet services, and
broadband data services including business television, distance learning and
video to the desktop.

# # #

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, from time to
time, Loral Space & Communications Ltd. or its representatives have made or
may make forward-looking statements, orally or in writing. Such
forward-looking statements 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 and conditions have been described in the section of the company’s
annual report on Form 10-K for the fiscal year ended December 31, 2000,
entitled “Certain Factors That May Affect Future Results,” and the company’s
other filings with the Securities and Exchange Commission. With regard to
forward-looking statements concerning Loral CyberStar, Inc. and its
business, financial condition, results of operations and prospects, the
factors and conditions which could materially affect these statements are
described in the section of Loral CyberStar’s annual report on Form 10-K for
the fiscal year ended December 31, 2000, entitled “Certain Factors That May
Affect Future Results.” The reader is specifically referred to these
documents regarding the factors and conditions that may affect future
results.

Contact:

Gayle Armstrong

Loral CyberStar

301-258-3341