Financially Speaking… Loral Space & Communications…

Loral Space & Communications Inc. [NASDAQ: LORL] has reported its unaudited pre-tax financial results for the periods ending December 31, 2007. The Company was not able to file its Form 10-K by the April 1, 2008 extended deadline due to income tax accounting complexities arising from the Telesat transaction. The Company expects to file its Form 10-K for 2007 in April 2008. For the year, Loral is reporting consolidated results for its former subsidiary, Loral Skynet through October 31 when the Telesat transaction closed. For Loral’s segment reporting purposes the Company includes Telesat revenue and expenses for the final two months of the year. In the consolidated financial statements, Telesat’s revenue and expenses are eliminated and Loral will include its 64 percent economic interest in Telesat under the equity method of accounting—New York, New York

Highlights

• The closing of the Telesat transaction resulted in the transformation of Loral’s fixed satellite services business into a 64 percent economic interest in the fourth largest FSS operator in the world
• For the two months following the close of the Telesat transaction, Telesat, in line with expectations, reported revenues of 118M/USD and Adjusted EBITDA of 67M/USD
• Space Systems/Loral’s 2007 full year revenue was 814M/USD, a 17 percent increase over 2006 revenues of $697M/USD. Adjusted EBITDA declined from 66M/USD in 2006 to 35M/USD in 2007 primarily resulting from one time gains recognized in 2006
• Space Systems/Loral’s backlog was 1.0B/USD and Telesat Canada had a backlog of 5.3B/USD at December 31, 2007
• In conjunction with the Telesat transaction closing, Loral restructured its corporate functions, which will reduce its fixed cost run rate by approximately 40 percent, about 10M/USD per year. Corporate expenses in the fourth quarter and the year were higher than the comparable period in 2006 because of one time costs related to severance and litigation matters
• Loral ended 2007 with 315M/USD of cash and cash equivalents and 24M/USD of restricted cash. Based on the Company’s working capital needs on its current base of business, capital expenditures to complete its expansion initiatives, requirements for appropriate contingencies, and resources for future growth initiatives, the Company expects to require additional capital this year
• Benefiting from a gain of 104M/USD on the contribution of Loral Skynet to Telesat and an 89M/USD gain on foreign currency contracts, Loral reported pre-tax income of 158M/USD