LORAL SKYNET GRANTED ITS FIRST-EVER PATENT FOR INNOVATIVE TRANSPONDER
PERFORMANCE MEASUREMENT SYSTEM

BEDMINSTER, NJ - July 25, 2002 - Loral Skynet today announced that it
has received its first-ever patent for a unique transponder plot
measurement, storage and distribution system that allows Skynet's
engineers to clearly see a customer's satellite signal integrity, power
levels and possible interference problems directly from a desktop
computer in real time. Loral Skynet is a subsidiary of Loral Space &
Communications (NYSE: LOR).

Transponder plots - essentially a snapshot in time of the radio
frequency spectrum on a given transponder - are generally drafted on
paper at a satellite operator's control center and faxed to engineers
and the satellite's end-users. Skynet's electronic plot system allows
its engineers to supply customers with a clear and professional quality
plot of their signal(s) on Loral Skynet satellites quickly and
efficiently. The information can also be sent to customers
electronically as a JPEG file.

The software gives Skynet engineers a consistent and flexible electronic
plot format that allows for analysis, annotation and distribution with
no loss in the professional presentation quality. In its electronic
format, over a year's worth of plots can be archived on a single CD ROM.

"Our engineers' ability to quickly obtain and utilize electronic,
accurate, and easy-to-read transponder measurements, and to convey this
information to our customers, has improved greatly with this new tool,"
said Rich Currier, vice president, technical engineering and operations,
Loral Skynet. "Teams across the Loral Skynet organization may easily use
the information in our continuing effort to provide our customers with
the best possible service."

The transponder measurement system was developed by Loral Skynet
engineers Derwin Skotch and David McDowell in May 2000.

Loral Skynet of Bedminster, N.J. is a leading satellite communications
services provider that operates the Telstar satellite fleet. This fleet
provides C-band and Ku-band coverage to over 85% of the world's
population for the transmission of video and data services. Loral Skynet
also offers gateway access services and transmission platforms through
Skynet Network Services and management services for the deployment and
development of customized satellite solutions through Skynet
Professional Services. Loral Skynet is a member of the Loral Global
Alliance, which, along with Europe*Star, Loral Skynet do Brasil and
Satmex, offers customers coordinated operations to meet today's
communications needs. For more information, visit Loral Skynet's web
site at: www.loralskynet.com .

Loral Space & Communications is a high technology company that
concentrates primarily on satellite-based services and satellite
manufacturing, including broadcast transponder leasing and value added
services, domestic and international corporate data networks, broadband
data transmission and Internet services. For more information, visit
Loral's Web site at www.loral.com .