Loral Space & Communications today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the sale of Loral's North American satellites for up to $1.1 billion to Intelsat, Ltd. As previously reported, Intelsat was the high bidder in an auction held October 20, 2003.

"Today's decision by the bankruptcy court is a tremendous step forward in our strategy to emerge from bankruptcy as a viable and profitable player in the satellite industry," said Bernard L. Schwartz, chairman and CEO of Loral. "The sale to Intelsat allows Loral to eliminate its nearly $1 billion in secured debt and provides the framework for a plan of reorganization that recognizes the growth potential of the remaining FSS and manufacturing businesses."

Announced in July, the agreement with Intelsat provides for the sale of the in-orbit Telstars 5, 6, 7 and 13, as well as Telstar 8, which is scheduled to be launched in mid 2004. The agreement also includes rights to the 77 degrees West longitude orbital slot, formerly occupied by Telstar 4. The sale to Intelsat remains subject to FCC approval and is expected to close in early 2004.

Loral intends to reorganize around its remaining satellite services business, comprised of a fleet of five international satellites, and Space Systems/Loral (SS/L), its satellite manufacturing business. SS/L recently received orders for the construction of four new satellites - one each for Intelsat and PanAmSat Corporation and two for DIRECTV, Inc.

Loral Space & Communications is a satellite communications company. It owns and operates a global fleet of telecommunications satellites used by television and cable networks to broadcast video entertainment programming, and by communication service providers, resellers, corporate and government customers for broadband data transmission, Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.