[LORAL SPACE & COMMUNICATIONS LOGO]

     600 Third Avenue
   New York, NY 10016

FOR IMMEDIATE RELEASE                                                       NEWS

                                                        Contact: Jeanette Clonan
                                                                   John McCarthy
                                                                  (212) 697-1105

                  LORAL REACHES GLOBAL SETTLEMENT WITH ALCATEL

NEW YORK - JUNE 30, 2003 - Loral Space & Communications (NYSE: LOR) announced
today that it has reached an overall settlement with Alcatel resolving all
outstanding issues between them including a contract dispute that has been in
arbitration. Loral will pay Alcatel $5 million now and an additional $8 million
within one year of closing. As part of the settlement, Alcatel will transfer its
minority interest in CyberStar to Loral, and Loral will transfer to Alcatel its
minority interests in two Alcatel affiliates (Europe*Star and SkyBridge) that
Loral had previously written off.

Loral Space & Communications is a satellite communications company. 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 for commercial and government
applications including direct-to-home television, broadband communications,
wireless telephony, weather monitoring and air traffic management. 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, 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 have been 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.


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