Mark H. Rachesky, M.D. Named Non-Executive Chairman

NEW YORK – February 2, 2006 – The Board of Directors of Loral Space & Communications Inc. (NASDAQ:LORL) announced today that, in connection with the retirement of Bernard L. Schwartz, effective March 1, 2006, Michael B. Targoff has been elected chief executive officer of Loral. Mr. Targoff has served since November 2005 as vice chairman of Loral’s board. The position of non-executive chairman will be assumed by Dr. Mark H. Rachesky.

“The knowledge of both the company and the industry that Mickey Targoff has accumulated over his long relationship with Loral will certainly serve the company well and we are fortunate that he has accepted this new assignment,” stated Mr. Schwartz. “From 1981 to 1998, as general counsel and ultimately as president and chief operating officer of Loral, Mickey displayed all the capabilities we value at Loral: a strong grasp of the complexities of the satellite industry, integrity, respect for our employees and the vision to build long-term value for our constituents. The continuity Mickey brings to Loral’s management team will be very advantageous and I’m confident the company will prosper under his leadership.”

Mr. Targoff said, “I am honored to follow Bernard Schwartz as CEO of Loral and enthusiastic about the opportunity to lead the company. Loral’s resources, capabilities and market leadership, as demonstrated by its excellent performance during its reorganization, provide a solid platform for renewed prosperous growth. I am gratified by the board’s endorsement and buoyed at the prospect of working again with the corporate and operations executives led by president and COO Eric Zahler.”

Mr. Targoff, 61, is the founder of Michael B. Targoff & Co., which has sought active or controlling investments in telecommunications and related industry early stage companies. He also is chairman of the board of Communication Power Industries and Leap Wireless International, Inc. and serves as chairman of their audit committees. Mr. Targoff is a director of ViaSat, Inc. and is non-executive chairman of three private telecom companies. He earned his Bachelor of Arts degree from Brown University and his Juris Doctor from Columbia University School of Law, where he was a Hamilton Fisk Stone Scholar and Editor of the Columbia Journal of Law and Social Problems.

Dr. Rachesky, 46, is a co-founder and the president of MHR Fund Management LLC, managers of various private funds that invest in distressed and deeply undervalued middle-market companies. He currently serves as non-executive chairman of the board of directors of Leap Wireless International, Inc. and is on the board of directors of Emisphere Technologies, Inc., among others.

Loral Space & Communications (NASDAQ: LORL) is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to 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.

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 Inc. 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 from time to time 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. Many of these factors and conditions are also described in the section of the annual report on Form 10-K for the fiscal year ended December 31, 2004 of Loral Space & Communications Ltd. (the predecessor registrant to the company) (“Ltd.”), entitled “Commitments and Contingencies,” and the company’s and Ltd.’s other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.