Press Release

Loral Says Globalstar Filing Will Not Adversely Affect It

By SpaceRef Editor
February 16, 2002
Filed under , ,

Loral Space &
Communications provided comments concerning today’s
announcement by Globalstar, L.P. that Globalstar has reached agreement
with several creditors to restructure its debt, has filed a voluntary
bankruptcy petition, and has initiated a new business model to broaden
its business opportunities and accelerate the acquisition of new

The Globalstar actions are expected to have no adverse impact on
Loral. Loral said it wrote off substantially all of its investment in
Globalstar-related activities a year ago — as of December 31, 2000 —
and therefore anticipates no adverse adjustments to Loral’s results of
operations or financial position.

“It took Globalstar longer than originally expected to
commercially roll out its service,” said Bernard L. Schwartz, chairman
and chief executive officer of Loral. “Moreover, changes in competing
technologies and overall economic conditions made it impossible for
Globalstar to raise the additional funds necessary to complete the
deployment of its service without a financial reorganization. We do
not expect this to have any adverse economic consequences for Loral.
As a creditor, Loral would become a partial owner of a `new
Globalstar’ to be created under its reorganization pl;Â:27′

Loral Space & Communications is a high technology company that
concentrates primarily on satellite manufacturing and satellite-based
services. For more information, visit Loral’s web site at

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.

SpaceRef staff editor.