Spanish Ministry of Defense Begins Operations

ROCKVILLE, MD – April 4, 2005 – XTAR today announced that XTAR-EUR, the world’s first satellite developed for commercial X-band services, has completed its in-orbit testing and is now fully operational.

“The in-service of XTAR-EUR marks a new era in satellite communications for government and military users around the world,” said Dr. Denis Curtin, chief operating officer, XTAR. “The satellite’s coverage and transmission capabilities, confirmed during in-orbit testing, have intensified the US and other allied governments’ desire to use the system, with planned demonstrations for the US Army and Air Force scheduled in the coming weeks.”

The Spanish Ministry of Defense (SMOD), XTAR’s first customer, will soon begin operations on its 238 MHz of X-band capacity on XTAR-EUR. The SMOD will continue to use XTAR-EUR until its primary satellite, SPAINSAT, enters service. In addition, XTAR will lease eight 72 MHz X-band transponders on SPAINSAT, to be designated XTAR-LANT, in order to provide additional X-band services and greater flexibility.

Built by Space Systems/Loral (SS/L), XTAR-EUR was launched February 12, 2005 aboard an Ariane 5 ECA rocket. Located at 29 degrees East longitude, the satellite provides X-band coverage from Eastern Brazil and the Atlantic Ocean, across all of Europe, Africa and the Middle East to as far east as Singapore.

The XTAR-EUR satellite features on-board switching and multiple steerable beams, allowing users access to X-band capacity as they travel anywhere within the footprint of the satellite. XTAR-EUR is designed to work with existing X-band terminals, as well as next generation X-band terminals that feature antennas smaller than 2.4 meters.

XTAR-EUR is based on SS/L’s space-proven 1300 platform and carries twelve wideband and high-power X-band transponders. XTAR-EUR, which has a specified service life of 15 years, maintains station-keeping and orbital stability by using bipropellant propulsion and momentum-bias systems. In all, SS/L satellites have amassed more than 1,100 years of on-orbit service.

XTAR, LLC is a new satellite communications company committed to serving the long-haul communications, logistics and infrastructure requirements of the U.S., Spanish and allied governments. The company is a joint venture between Loral Space & Communications, which owns 56 percent, and HISDESAT, which owns 44 percent. XTAR is headquartered in Rockville, Md., and has offices in Arlington, Va., Palo Alto, Calif. and Madrid, Spain. For more information, visit the XTAR web site at

HISDESAT Servicios Estrategicos S.A. is a Spanish company headquartered in Madrid and incorporated on July 17, 2001. HISDESAT’s aims are the acquisition, operation and commercialization of Government-oriented space systems, beginning with satellite communications in the X-band and Ka-band frequencies. HISDESAT is owned jointly by Hispasat, S.A., the Spanish commercial satellite services company, INSA (100% owned by the Spanish government) and the leaders of Spain’s space industries: EADS-CASA Espacio, INDRA and SENER. HISDESAT will provide enhanced capabilities, including Ka-band, for Spain’s defense applications.

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 that include mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and government customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L is ISO 9001:2000 certified. For more information, visit the Space Systems/Loral web site at

Loral Space & Communications is a satellite communications company. In addition to Space Systems/Loral, through its Skynet subsidiary Loral owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, and for broadband data transmission, Internet services and other value-added communications services.

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. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company’s annual report on Form 10-K for the fiscal year ended December 31, 2004, entitled “Commitments and Contingencies,” and the company’s other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.