NEW YORK - October 22, 2004 - Loral Space & Communications Ltd. (OTCBB: LRLSQ) today filed a revised plan of reorganization (the "Plan") and a Disclosure Statement with the Bankruptcy Court. The company expects to exit chapter 11 under current management in the first-quarter of 2005.

The Plan, which revises the terms of a Plan previously filed on August 19, 2004, reflects a consensual agreement on financial terms between the company and the Creditors' Committee appointed in the chapter 11 cases of Loral and certain of its subsidiaries. It is subject to final documentation and the resolution of certain other issues between the company and the Creditors' Committee and to confirmation by the bankruptcy court. It provides, among other things, that:

• Loral's two businesses, Space Systems/Loral and Loral Skynet, will emerge intact as separate subsidiaries of reorganized Loral (New Loral). The Disclosure Statement establishes the enterprise value of New Loral at between approximately $650 million and approximately $800 million.
  
• Space Systems/Loral, the satellite design and manufacturing business, will emerge debt-free.
  
  
• The common stock of New Loral will be owned by Loral bondholders, Loral Orion bondholders and certain other unsecured creditors, as follows:
  
  • Loral bondholders and certain other unsecured creditors will receive approximately 19.4 percent of the common stock of New Loral.
  • Loral Orion unsecured creditors, including Loral Orion bondholders, will receive approximately 79.0 percent of New Loral's common stock plus $200 million in new senior secured notes to be issued by reorganized Loral Skynet. These creditors also will be offered the right to subscribe to purchase their pro-rata share of an additional $30 million in new senior secured notes to be issued by reorganized Loral Skynet. This rights offering will be backstopped by certain creditors who will receive a fee payable in the notes.
  • All other general unsecured creditors will have an option to elect to receive their pro rata share of approximately 1.6 percent of New Loral common stock or their pro rata share of $30 million in cash, subject to adjustment for over-subscription or under-subscription.
• Existing common and preferred stock will be cancelled and no distribution will be made to current shareholders.
  
• New Loral will emerge as a public company and will seek listing on a major stock exchange.

The documents also will be available via the court's website, at www.nysb.uscourts.gov/. Please note that a PACER password is required to access documents on the Bankruptcy Court's website. Loral's bankruptcy case number is 03-41710 (RDD).

Loral Space & Communications is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to 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 for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.

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, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.

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