DIRECTV-7S will provide More Capacity for Additional Local Channels and
In-Orbit Redundancy

NEW YORK – September 6, 2001 – Space Systems/Loral (SS/L), a subsidiary of
Loral Space & Communications, announced today that SS/L will
build a new high-power spot beam satellite that will enable DIRECTV to serve
additional markets with local channels and add new services.

The new satellite, named DIRECTV-7S, will be delivered in the second half of
2003, and will be the second spot beam satellite in the DIRECTV fleet
following the launch of DIRECTV-4S later this year. DIRECTV expects to have
DIRECTV-7S in service by the end of 2003.

“We are extremely proud that DIRECTV has selected SS/L to build its newest
state-of-the-art satellite, DIRECTV-7S,” said Dr. John Klineberg, president,
Space Systems/Loral. “We value the confidence that DIRECTV has in SS/L’s
ability to deliver a reliable, powerful and flexible spacecraft.”

“This broadcast satellite platform will give us the ability to extend local
channel service to additional markets and provide new services to existing
customers,” said Jim Butterworth, vice president, Engineering, DIRECTV, Inc.
“Space Systems/Loral provided the high-power satellite design that, by far,
covers the largest number of television households. Their creative design
met and exceeded our performance and flexibility requirements.” DIRECTV
currently delivers local channels in 41 metropolitan markets.

DIRECTV-7S will generate more than 13kW of total satellite power at the
beginning of its life and is designed to operate from orbital locations at
101 degrees West longitude, the primary orbital slot for DIRECTV, or 119
degrees West longitude.

In one operating mode, the new satellite will be capable of providing up to
54 transponders for high-quality local and national digital video service
broadcast into 27 beams. In its other configuration, the satellite will be
capable of providing up to 44 transponders broadcast into 30 beams.

The spacecraft is a version of SS/L’s space-proven 1300 satellite platform,
which has an excellent record of reliable operation. The geostationary 1300
has a designed service life of 15 years and maintains station-keeping and
orbital stability by using bipropellant propulsion and momentum-bias

A system of high efficiency solar arrays and lightweight batteries provides
uninterrupted electrical power. In all, SS/L satellites have amassed more
than 800 years of on-orbit service.

SS/L has also built two other satellites that have been acquired by the
direct-to-home satellite television provider – DIRECTV 6 and DIRECTV 5.
DIRECTV 5 is scheduled for launch later this year.

DIRECTV is the nation’s leading digital satellite television service
provider with more than 10 million customers. DIRECTV and the Cyclone Design
logo are trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corp.
HUGHES is the world’s leading provider of digital television entertainment,
broadband services, satellite-based private business networks, and global
video and data broadcasting. The earnings of HUGHES, a unit of General
Motors Corporation, are used to calculate the earnings per share
attributable to the General Motors Class H common stock (NYSE: GMH). For
more information, visit

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, 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

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, content
and Internet services.

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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


John McCarthy

Loral Space & Communications


Robert Mercer