Interim Capacity to Serve Brazil Acquired from Telesat Canada
 
NEW YORK – August 22, 2000 – Loral Space & Communications, (NYSE: LOR) announced today that it will expand its fixed satellite services (FSS) fleet with the addition of the new Estrela do Sul satellite, currently under construction by Space Systems/Loral. Loral Skynet do Brasil will offer its customers coverage throughout Latin America with connectivity into North America from its orbital slot at 63 degrees West longitude. The high-powered 1300 satellite will carry 36 Ku-band transponders, with two spot beams, providing a dedicated Ku-band solution for the Brazilian marketplace.
 
Estrela do Sul is expected to be launched in mid-2002. In order to commence service to Brazil and surrounding areas, Loral Skynet do Brasil has acquired the Anik-C1 satellite from Telesat Canada. This satellite, which has been renamed Brasil 1(T), is now being moved from 106.8 degrees West longitude and is expected to arrive at the 63 degrees slot later this month, where it will provide limited service until the launch of Estrela do Sul.
 
Brasil 1(T) is an HS376 that was launched in 1985 and currently has 8 Ku-band transponders available for service. In its new location, the satellite will provide coverage of the middle region of Brazil including Sao Paolo, Rio de Janeiro and Brasilia. The satellite will be used for a variety of full-time and part-time applications, including satellite newsgathering and backup for terrestrial fiber applications.
 
"This is a significant milestone in Loral’s global strategy as it continues to build its fixed satellite services business both in Latin America and around the world," said Mr. Terry Hart, president, Loral Skynet. "The addition of the Estrela do Sul satellite is yet another step in solidifying the Loral Global Alliance as a truly global provider of satellite services."
 
In March of 1999, Loral Skynet do Brasil was selected as the winner of an auction to acquire a Brazilian orbital satellite slot, giving the company the right to use Brazil’s 63 degrees west longitude slot, from which it will offer Ku-band satellite services to customers within Brazil and throughout most of the Western hemisphere. In addition to these services, Loral Skynet do Brasil will also be able to offer coverage in other parts of the world through the member companies of the Loral Global Alliance. Further information regarding satellite usage and services can be obtained by contacting Loral Skynet do Brasil, by phone at 55-21-5558603.
 
Estrela do Sol will be a version of SS/L’s three-axis, body-stabilized 1300 bus. The 1300’s modular design is flight-proven and has an excellent record of reliable operation. SS/L’s 1300 buses are designed to achieve long useful orbital life through use of bipropellant propulsion and momentum-bias systems for excellent station-keeping and orbital stability. A system of high-efficiency solar arrays and lightweight batteries provide uninterrupted electrical power. Overall, SS/L satellites have accumulated nearly 800 years of reliable on-orbit service.
 
Loral Skynet do Brasil, a subsidiary of Loral Space & Communications, is the first in-country, private Brazilian satellite company offering Ku-band services and is a wholly owned subsidiary of Loral Space and Communications. The company was formed primarily to address opportunities in the fixed satellite services market in Brazil and South America. The company has the rights and obligations to use the Ku-band frequencies at the 63 degrees west longitude orbital slot, as well as marketing capabilities for all capacity on the Loral Global Alliance fleet. For more information, visit
www.loralskynetdobrasil.com.
 
Space Systems/Loral (SS/L), also a subsidiary of Loral Space & Communications, is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services, including mission control operations and procurement of launch services. Based in Palo Alto, California, the company has an international base of commercial and governmental customers whose applications include broadband digital communications, wireless telephony, direct-to-home broadcast, environmental monitoring, and air traffic control. SS/L is ISO 9001 certified. For more information, visit www.ssloral.com.
 
Loral Space & Communications 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, global wireless telephony, broadband data transmission and content services, Internet services and international direct-to-home satellite services.