Europe's chello Uses Loral CyberStar's Satellite-Based Network to Deliver Internet Services to Australia.

Business Editors

ROCKVILLE, Md.--(BUSINESS WIRE)--April 18, 2000

CyberStar, a Loral (NYSE:LOR) company, announced today that chello, Europe's first and leading broadband and Internet services company, is now using CyberStar's satellite-based Internet Protocol (IP) network to provide high-speed Internet access and content to a market of more than 300,000 pay-TV subscribers across Australia. The terms of the contract were not disclosed.

Amsterdam-based chello is providing this new service to meet the needs of Australian Internet users who live or work outside of major metropolitan areas and do not otherwise have access to high-speed Internet access. The company now offers consumer and home office users a combination of high-speed, broadband interactive services and global and local content at 256 kilobits per second via its Multichannel Multipoint Distribution Service (MMDS).

Over the next three years, chello and CyberStar plan to expand their relationship by providing similar high-quality multimedia Internet services to other parts of the Asia-Pacific region, Latin America and Europe. Chello already uses CyberStar's high-bandwidth WorldCast Internet access services, which enables the European company to sell Internet services to more than 25,000 cable subscribers in Vienna, Austria.

"We are pleased that chello chose us to help them expand into the Australian market and that we were able to deploy the network within just a few weeks to meet their business priorities," said Mark Gilroy, general manager of CyberStar-Asia Pacific.

In addition to satellite services, CyberStar provides high-performance Internet backbone access and co-location services for chello's servers on the U.S. west coast. These servers, which provide traditional Internet access, content aggregation, caching, and e-mail services, are connected with CyberStar's own California facilities via a teleport and uplinked onward to Australia, allowing chello to efficiently deliver access to U.S. Internet content and infrastructure.

About chello

Chello Broadband n.v. is Europe's first and leading broadband Internet Service Provider, committed to delivering next-generation, 24-hour accessible Internet services and broadband content to consumers via high-speed cable modems. Chello serves over 100,000 Internet subscribers in nine countries via its existing broadband delivery partners: Austar United Communications (Australia), UPC (Austria, France, Netherlands, Norway), Intercomm (France), Stjarn TV (Sweden), Telesystem Tirol (Austria) and Wolu TV (Belgium). (Editor's note: "chello" is formally spelled with a lower case "c" except at the beginning of a sentence.)

Chello is an operating unit of United Pan-Europe Communications (UPC), with headquarters in Amsterdam and offices in Amsterdam, Paris, Vienna, Hamburg, Brussels, Oslo, Washington, D.C., and Sydney.

About CyberStar

CyberStar, a Loral company, is based in Rockville, Maryland. CyberStar is a leading global Internet and infomedia business providing Internet Protocol (IP) broadband data, Internet and multimedia services, business television and private managed networks to businesses and Internet Service Providers throughout the world. Applications include virtual multicast networks, data networking, high-speed file transfer, distance learning, and audio and video streaming services. CyberStar delivers service to Internet Service Providers serving over 10 million people in 120 countries and recently announced its plan to introduce broadband-by-satellite Internet and streaming media services direct to the desktop starting in late 2000. For more information, visit CyberStar's Web site at http://www.cyberstar.com.

About Loral Space & Communications

Loral Space & Communications is a high-technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, Internet services, international direct-to-home satellite services, and broadband data services including business television, distance learning and video to the desktop. For more information, visit Loral's Web site at http://www.loral.com.