Japanese joint venture to offer audio, video, and multimedia data services to mobile communications users

Space Systems/Loral, a subsidiary of Loral Space & Communications
, has received an authorization to proceed (ATP) from Mobile
Broadcasting Corporation (MBC) of Japan to design and build MBSAT, a
satellite that will deliver digital multimedia information services
such as CD-quality audio, MPEG-4 video and data to mobile users
throughout Japan. On-orbit delivery of the spacecraft is scheduled for
fourth quarter 2003 with service expected to begin in early 2004.

The MBC services are the first in the world to deliver not only
high-quality music but also video and data to mobile users through
various kinds of mobile receiver terminals including those in cars,
ships, trains, handheld terminals, personal digital assistants (PDAs),
cellular phones and home portables. A very small antenna will be
sufficient to receive MBC broadcasting signals even inside office
buildings and in vehicles moving at high speed. MBC will supplement
their satellite service with terrestrial signal repeaters.

The Satellite System

MBSAT will provide 2400 watts RF power over 25 MHz of S-band
spectrum to run more than 50 channels of audio and video from 16
S-band transmitters operating at 120W. In addition, the satellite will
provide a 25 MHz Ku-band service link to transmit the broadcast signal
to terrestrial repeaters. The satellite will generate more than 7,400
watts of DC power continuously throughout its 12-year life. The
satellite will deploy a 12-meter antenna reflector to transmit the MBC

MBSAT’s S-band payload, using MPEG-4 and AAC compression, will
deliver CD-quality audio and TV-quality video, in addition to various
types of data. The system will use code division multiplexing (CDM)
MPEG-4 for video, and advanced audio coding (AAC) for audio. The
system will be able to broadcast more than 50 programs simultaneously.

The new spacecraft will be a version of SS/L’s space-proven
three-axis, body-stabilized 1300 bus, tailored to meet the specific
requirements of MBC. SS/L’s satellites 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. SS/L satellites have
amassed more than 800 years of reliable on-orbit service.

The Companies

Mobile Broadcasting Corporation was established to provide cars
and mobile terminals with digital satellite broadcasting for audio,
video and data services throughout Japan. MBC’s new broadcasting
system was authorized by the Japanese Government and registered with
the ITU. Already the system capabilities and high performance quality
have been successfully verified in dense urban locations by various
field demonstrations in the Shinbashi and Ginza area of Tokyo.
Dedicated first generation receiver LSI chips have been evaluated
through extensive tests. The second-generation receivers with high
density LSI technology will be available by mid-2002.

MBC’s major shareholders are Toshiba, Toyota, Fujitsu, Nippon TV
and Panasonic. So far 42 Japanese companies are MBC partners. New
Japanese investors will be announced soon. Also, several foreign
companies own significant interests in the MBC business venture while
several others are currently considering investment.

Space Systems/Loral is one of the world’s premier designers,
manufacturers and integrators 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
broadcast video distribution, broadband digital communications,
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. 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, 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 results.