Loral Emerges From Chapter 11.

Two Core Business Units and Management Team Remain In Place

Company Has Strengthened Balance Sheet, Little Debt, Strong Backlog

Upon Distribution, New Common Stock to Be Traded on NASDAQ Under Ticker LORL

NEW YORK, Nov. 22 /PRNewswire-FirstCall/ -- Loral Space & Communications Inc. today announced that it has officially concluded its reorganization and has successfully emerged from chapter 11.

Bernard L. Schwartz, Loral's chairman and chief executive officer, said: "Loral has reached an important milestone with its emergence from chapter 11. It is a great triumph for the men and women of our workforce, who stayed focused on their jobs, upheld our high manufacturing and service standards and kept Loral in the forefront of the industry.

"Over the last two-and-a-half years, we have created a stronger, leaner and more efficient Loral. We have won new awards and customers, and we continue to seek and capture opportunities in many new and traditional markets. We are confident that the momentum we have built will benefit all our constituents."

Throughout the chapter 11 process, Space Systems/Loral (SS/L) remained the premier manufacturer of commercial satellites, increasing its market share and winning more than a third of the dollar value of all contracts awarded over the last 18 months, more than any other commercial satellite manufacturer. Loral Skynet's fleet is well-positioned to serve areas with high growth potential such as Asia, Europe, Latin America, the Middle East and the trans-Atlantic market. Skynet has also expanded its services beyond traditional FSS leases with the introduction of new IP-based data services. Loral's new XTAR joint venture has been awarded contracts for service to the U.S. State Department and the Spanish Ministry of Defense.