Space Systems/Loral Awarded Contract to Build High-Power Spot Beam Satellite for DIRECTV.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 6, 2001

DIRECTV-7S will provide More Capacity for Additional Local

Channels and In-Orbit Redundancy

Space Systems/Loral (SS/L), a subsidiary of Loral Space & Communications (NYSE: LOR), announced today that SS/L will build a new high-power spot beam satellite that will enable DIRECTV to serve additional markets with local channels and add new services.

The new satellite, named DIRECTV-7S, will be delivered in the second half of 2003, and will be the second spot beam satellite in the DIRECTV fleet following the launch of DIRECTV-4S later this year. DIRECTV expects to have DIRECTV-7S in service by the end of 2003.

"We are extremely proud that DIRECTV has selected SS/L to build its newest state-of-the-art satellite, DIRECTV-7S," said Dr. John Klineberg, president, Space Systems/Loral. "We value the confidence that DIRECTV has in SS/L's ability to deliver a reliable, powerful and flexible spacecraft."

"This broadcast satellite platform will give us the ability to extend local channel service to additional markets and provide new services to existing customers," said Jim Butterworth, vice president, Engineering, DIRECTV, Inc. "Space Systems/Loral provided the high-power satellite design that, by far, covers the largest number of television households. Their creative design met and exceeded our performance and flexibility requirements." DIRECTV currently delivers local channels in 41 metropolitan markets.

DIRECTV-7S will generate more than 13kW of total satellite power at the beginning of its life and is designed to operate from orbital locations at 101 degrees West longitude, the primary orbital slot for DIRECTV, or 119 degrees West longitude.

In one operating mode, the new satellite will be capable of providing up to 54 transponders for high-quality local and national digital video service broadcast into 27 beams. In its other configuration, the satellite will be capable of providing up to 44 transponders broadcast into 30 beams.

The spacecraft is a version of SS/L's space-proven 1300 satellite platform, which has an excellent record of reliable operation. The geostationary 1300 has a designed service life of 15 years and maintains station-keeping and orbital stability by using bipropellant propulsion and momentum-bias systems.

A system of high efficiency solar arrays and lightweight batteries provides uninterrupted electrical power. In all, SS/L satellites have amassed more than 800 years of on-orbit service.

SS/L has also built two other satellites that have been acquired by the direct-to-home satellite television provider - DIRECTV 6 and DIRECTV 5. DIRECTV 5 is scheduled for launch later this year.

DIRECTV is the nation's leading digital satellite television service provider with more than 10 million customers. DIRECTV and the Cyclone Design logo are trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corp. HUGHES is the world's leading provider of digital television entertainment, broadband services, satellite-based private business networks, and global video and data broadcasting. The earnings of HUGHES, a unit of General Motors Corporation, are used to calculate the earnings per share attributable to the General Motors Class H common stock (NYSE: GMH). For more information, visit www.DIRECTV.com.

Space Systems/Loral is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services, including mission control operations and procurement of launch services. Based in Palo Alto, California, the company has an international base of commercial and governmental customers whose applications include broadband digital communications, wireless telephony, direct-to-home broadcast, environmental monitoring, and air traffic control. SS/L is ISO 9001 certified. For more information, visit www.ssloral.com.

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, broadband data transmission, content and Internet services. 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, from time to time, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements 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 and conditions have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2000, entitled "Certain Factors That May Affect Future Results," and the company's other filings with the Securities and Exchange Commission. With regard to forward-looking statements concerning Loral CyberStar, Inc. and its business, financial condition, results of operations and prospects, the factors and conditions which could materially affect these statements are described in the section of Loral CyberStar's annual report on Form 10-K for the fiscal year ended December 31, 2000, entitled "Certain Factors That May Affect Future Results." The reader is specifically referred to these documents regarding the factors and conditions that may affect future results.