The MBSAT broadcast communications
satellite, built by Space Systems/Loral (SS/L) for Mobile Broadcasting
Corporation (MBCO) of Japan and SK Telecom of Korea, was successfully
launched at 12:40 am EST today. The satellite was sent into space on an
International Launch Services (ILS) Atlas III rocket from the Cape Canaveral
Air Force Station.

The MBSAT satellite will be positioned at 144 degrees East longitude, where
it will deliver high-quality music, video and data to mobile users in Japan
and Korea through a variety of mobile terminals, including those in cars,
ships, trains, handheld terminals, personal digital assistants, cellular
phones and home portables. A very small antenna will be sufficient to
receive these broadcast signals even inside buildings and in vehicles moving
at high speeds.

"The MBSAT satellite will host one of the most cutting edge applications
driving the satellite industry beyond basic broadcasting," said C. Patrick
DeWitt, president, Space Systems/Loral. "SS/L has built a reliable, powerful
and flexible spacecraft that will provide numerous multimedia applications
in Japan and Korea for years to come."

The satellite carries two high power transponders for direct broadcasting
services, with one transponder providing coverage for Japan and the other
for Korea. Two additional transponders provide links to terrestrial repeater
networks, which augment the satellite broadcast signal. Each transponder has
an operating bandwidth of 25 MHz, allowing more than 50 channels of audio,
video and data services.

The new spacecraft uses SS/L’s space-proven three-axis, body-stabilized 1300
bus, tailored for the MBSAT payload. This payload combines high power phase
matched transmitters with a 12-meter unfurlable reflector, providing
exceptional coverage and quality of service. SS/L’s satellites are designed
to achieve long useful orbital life through use of bipropellant propulsion
and momentum-bias systems for excellent stationkeeping and orbital
stability. The MBSAT on orbit performance is further enhanced by use of
Stationary Plasma Thrusters for orbital maneuvers. A system of
high-efficiency solar arrays and lightweight batteries provide over 7400
watts of uninterrupted electrical power over the 12 years of satellite life.

Mobile Broadcasting Corporation was established to provide cars and mobile
terminals with digital satellite broadcasting for audio, video and data
services throughout Japan. MBCO’s new broadcasting system was authorized by
the Japanese Government and registered with the ITU. MBCO’s major
shareholders are Toshiba, SK Telecom, NTT Data, Mitsui Sumitomo Insurance,
Toyota, Fujitsu, Nippon TV and Panasonic. So far 55 Japanese companies are
MBCO partners. Several foreign companies own significant interests in the
MBCO business venture while many others are currently considering
investment. For more information, visit MBCO’s web site at www.mbco.co.jp.

SK Telecom Co., Ltd. is Korea’s leading wireless telecommunications services
provider and a pioneer in the commercial development and provision of
high-speed wireless data and Internet services. The company serves nearly 18
million subscribers throughout Ko-rea, the majority of whom own data-capable
handsets. SK Telecom has established a new company, TU Media Corp. with more
than 150 investor companies. TU Media Corp. will provide mobile digital
multimedia broadcasting services throughout the Korean Peninsula. For more
information, visit SK Telecom’s web site at www.sktelecom.com and TU Media
Corp’s web site at www.tu4u.com.

Space Systems/Loral, a subsidiary of Loral Space & Communications (OTCBB:
LRLSQ), is a premier designer, manufacturer, and integrator of powerful
satellites and satellite sys-tems. SS/L also provides a range of related
services that include mission control opera-tions 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
satellites have amassed more than 1000 years of reliable on-orbit service.
SS/L is ISO 9001:2000 certified. For more informa-tion, visit
www.ssloral.com.

Loral Space & Communications is a satellite communications company. Through
its Skynet subsidiary, it owns and operates a global fleet of
telecommunications satellites used by television and cable networks to
broadcast video entertainment programming, and by communication service
providers, resellers, corporate and government customers for broadband data
transmission, 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 through its Space Systems/Loral
subsidiary. For more information, visit Loral’s web site at www.loral.com.

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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, 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 Loral with the Se-curities
and Exchange Commission, press releases or oral statements made with the
approval of an author-ized executive officer of Loral. 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 include those related to the filing, on July 15, 2003 by Loral and
certain of its subsidiaries, of voluntary petitions for reorgani-zation
under Chapter 11 of Title 11 of the United States Code in the United States
District Court for the South-ern District of New York and parallel
insolvency proceedings in the Supreme Court of Bermuda in which cer-tain
partners of KPMG were appointed as joint provisional liquidators.
Additional factors and conditions are also described in the section of
Loral’s annual report on Form 10-K for the fiscal year ended December 31,
2002, entitled "Certain Factors That May Affect Future Results," and Loral’s
other filings with the Securities and Exchange Commission. The reader is
specifically referred to these documents.