Loral Skynet Completes Sale of Business Television Product Line to Ariel Way's dbsXmedia

Loral Skynet Completes Sale of Business Television Product Line to Ariel Way's dbsXmedia

Loral Skynet to Continue Providing Satellite and Terrestrial Communications Infrastructure to dbsXmedia Customers

BEDMINSTER, N.J., April 27 /PRNewswire-FirstCall/ -- Loral Skynet today announced that it has completed the sale of its business television product line to dbsXmedia, part of the Ariel Way, Inc. group of companies, for a combination of cash, stock of Ariel Way and ongoing contracts for infrastructure support from Loral Skynet.

Certain Loral Skynet employees have accepted offers of employment with dbsXmedia and will transfer to the company's new offices in Plymouth, England and Frederick, Maryland. This highly experienced team will continue the daily operations of customers' corporate communications networks for dbsXmedia, ensuring seamless, high quality service.

"Divesting our BTV business was an important step shaping Loral Skynet into a pure FSS and network services business," said Patrick Brant, president, Loral Skynet. "This transaction allows Skynet to focus on its core satellite service businesses, while gaining the advantageous position as a primary provider of satellite and terrestrial communications services to dbsXmedia."

With its unique combination of satellites in space and fiber connectivity around the globe, today's Loral Skynet is the only satellite services company that has the capability and infrastructure to offer customers a complete package of leased transponder services, IP-based and heritage network services and professional services, including satellite TT&C (telemetry, tracking and control).

About dbsXmedia

dbsXmedia, part of the Ariel Way, Inc. group of companies, provides communications infrastructure and integrated multimedia services to corporations throughout the United States and Europe. dbsXmedia's executive management has over 25 years of experience in the video and transmission industry. dbsXmedia operates from offices in the United States and United Kingdom, providing industry- leading solutions for BTV, digital signage and interactive media delivered over a combination of satellite, terrestrial and wireless networks. For more information, visit http://www.dbsxmedia.com/.

About Ariel Way, Inc.

Ariel Way is a technology and services company providing highly secure global communications solutions. The company is focused on developing innovative and secure technologies, acquiring and growing advanced emerging technology companies and national and global communications service providers. The company also intends to create strategic alliances with companies with complementary product lines and service industries. More information about Ariel Way can be found on the web at http://www.arielway.com/.

About Loral Skynet

A pioneer in the satellite industry, Loral Skynet delivers the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, in combination with its hybrid VSAT/fiber global network infrastructure, Skynet meets the needs of companies around the world for broadcast and data network services, Internet access, IP and systems integration. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit the Loral Skynet web site at http://www.loralskynet.com/.

In addition to being the parent company of Loral Skynet, Loral Space & Communications (BULLETIN BOARD: LRLSQ) is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary. For more information, visit the Loral Space & Communications web site at http://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. 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, 2004, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.

Contact:
John McCarthy
(212) 338-5345

Source: Loral Skynet

CONTACT: John McCarthy, +1-212-338-5345, for Loral Skynet

Web site: http://www.loralskynet.com/
http://www.dbsxmedia.com/
http://www.arielway.com/
http://www.loral.com/

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