Loral Space & Communications Inc today announced here of its financial results for the periods that ended December 31, 2006.

The Loral Space & Communications is a satellite communications company. The company excels in owning and operating a fleet of telecommunications satellites, that are used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. Loral is also acclaimed as an internationally renowned leader especially in the designing and manufacturing of satellites and satellite systems. Its designed and manufactured satellites and satellite systems are being used for commercial and government applications that include direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.

Loral's 2006 results show a strong year of bookings and performance at its satellite manufacturing unit. It also included Space Systems/Loral (SS/L), as well as continued steady performance at Loral Skynet, the company's fixed satellite services (FSS) business.

The highlights of the Annual Report include:

• Led by strong results at SS/L, Loral's 2006 full year revenue was $797 million, a 27 percent increase from $626 million in 2005. Fourth quarter revenue was $206 million, compared to $197 million reported in the fourth quarter of 2005.

• Loral's 2006 Adjusted EBITDA(1) increased to $101 million versus Adjusted EBITDA of $37 million in 2005. In the fourth quarter of 2006, Loral's Adjusted EBITDA was $37 million, compared to Adjusted EBITDA of $11 million for the fourth quarter of 2005.

• Loral's 2006 operating income increased to $30 million versus an operating loss of $72 million in 2005. In the fourth quarter of 2006, Loral's operating income was $19 million, compared to an operating loss of $5 million for the fourth quarter of 2005

• In the fourth quarter of 2006, Loral reported net income of $3 million versus a net loss of $15 million in the fourth quarter of 2005. Loral's net loss for 2006 was $23 million, compared to a net loss of $74 million in 2005.

• Loral ended 2006 with $293 million in available cash and short term investments. On February 27, 2007, Loral completed its $300 million of preferred stock financing with MHR Fund Management LLC. Loral intends to utilize its cash and short term investments primarily for working capital requirements and facilities upgrades at SS/L, for the continued construction of Loral Skynet's newest satellite, Telstar 11N, and to complete the Telesat Canada transaction.

• Loral's total consolidated backlog increased to $1.347 billion at December 31, 2006 from $1.248 billion at December 31, 2005.

Speaking on the occasion Mr. Michael B. Targoff, the Chief Executive Officer of Loral said, "2006 was a watershed year for Loral in terms of implementing our growth and profitability strategy. A strong commercial satellite manufacturing market and SS/L's excellent on-orbit performance and reliability, coupled with its schedule integrity and superior customer service, led to seven new satellite awards for the unit, driving revenues and profitability,” he continued.

He added, "In satellite services, our agreement to acquire Telesat Canada and combining it with Loral Skynet is transformational, creating a strong platform for value creation. Upon closing, the new Telesat company will be the fourth largest satellite operator in the world, with a large, high-quality backlog, international scope and access to high growth FSS and direct-to-home markets."