Space
Systems/Loral (SS/L), a subsidiary of Loral Space & Communications, today announced that the Optus C1 communications
satellite has completed passive intermodulation (PIM) testing – the
last major milestone prior to launch.

SS/L has performed system level integration and testing of Optus
C1 under contract from Mitsubishi Electric of Japan for SingTel Optus
of Australia.

PIM testing evaluates a satellite’s ability to avoid interference
between operating frequency bands, ensuring that the communications
payload will operate as designed. The test is important for Optus C1
because its communications payload operates in four different
frequency bands – commercial services at Ku-band for Optus, and
military communications at UHF, X- and Ka-bands for the Australian
Department of Defence. The test was conducted at the David Florida
Laboratory in Ottawa, Canada.

Optus C1 will be one of the most advanced communications
satellites ever built, carrying a total of 16 antennas that will
provide 18 beams across Australia, New Zealand and the Asia-Pacific
region, as well as global beams covering from India to Hawaii. Optus
C1 is scheduled for launch aboard an Ariane rocket in early 2003.

Space Systems/Loral 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,
Calif., the company has an international base of commercial and
governmental customers whose applications include broadband digital
communications, direct-to-home broadcast, defense communications,
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,
broadband data transmission, and Internet services. For more
information, visit Loral’s web site at www.loral.com.

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 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 are 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.