PHOTO RELEASE: SPACE SYSTEMS/LORAL COMPLETES STRUCTURAL TESTING OF WORLD'S LARGEST COMMERCIAL COMMUNICATIONS SATELLITE

PALO ALTO, CALIF. - April 16, 2003 - Space Systems/Loral (SS/L), a subsidiary of Loral Space & Communications (NYSE: LOR), has completed static loads testing of iPSTAR-1, the world's largest commercial communications satellite with a launch weight of 14,900 pounds (6775 kilograms). iPSTAR-1 is being built by SS/L at its Palo Alto, California facility for Shin Satellite, Plc of Thailand.

Static loads testing validates the spacecraft structure and its ability to carry the loads it will experience during the satellite's manufacturing, launch and operation in geosynchronous orbit.

Shin Satellite will use the spacecraft to provide broadband Internet services throughout a large portion of Asia, Australia and New Zealand. With eighty-four spot beams and a total throughput capability of approximately 40 gigabytes per second, iPSTAR-1 will support individual user data rates of up to eight megabytes per second forward link and four megabytes per second return link to as many as eight million users. Service prices will be comparable to ground-based broadband technologies, ushering in a new era in satellite delivered broadband services. Launch is planned for early 2004 into an orbital slot at 120 degrees East longitude.

After a series of structural tests, spacecraft technicians inspect the 15- foot high panels of the iPSTAR-1 satellite. When completed, the satellite's 40-foot long solar arrays will be anchored to each of the satellite's two communication panels. Built by Space Systems/Loral of Palo Alto, Calif., the massive iPSTAR-1 satellite will be the largest commercial communications satellite ever built
when it enters service in 2004.

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 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.

Shin Satellite, a turnkey satellite operator, provides C-band and Ku-band transponder leasing, teleport and other value-added and engineering services to users in Asia, Africa, Europe and Australasia. Shin Satellite owns and operates Thaicom 1A, 2, and 3. Thaicom 1A is located at 120 degrees East, and Thaicom 2 and 3 are both located at 78.5 degrees East with a total capacity of 49 C-band and 20 Ku-band transponders offering over 70 channels. Thaicom is a hotbird for Indochina and India, an emerging platform of choice for transcontinental Sat TV broadcasts from Europe to Australia. The company has spent years researching and developing new technology to make Internet via satellite more efficient, thus reducing costs and improving the service to end-users.

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.

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, 2002, 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.