SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000



Commission file number 0-22085
                       -------


                              LORAL CYBERSTAR, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                                 <C>
             Delaware                                                       52-1564318
--------------------------------                                       ------------------
(State or other jurisdiction of                                         (I.R.S. Employer
 incorporation or organization)                                        Identification No.)


2440 Research Boulevard, Suite 400, Rockville, Maryland                       20850
-------------------------------------------------------                 -----------------
      (Address of principal executive offices)                              (Zip Code)
</TABLE>


                                  301-258-8101
--------------------------------------------------------------------------------
               (Registrant's telephone number including area code)

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant  was required to file such  reports) and (2) has been subject to such
filing requirements for the past 90 days. Yes X No __

THE REGISTRANT  MEETS THE  CONDITIONS SET FORTH IN GENERAL  INSTRUCTION H (1)(a)
AND (b) OF FORM 10-Q AND IS THEREFORE FILING WITH THE REDUCED  DISCLOSURE FORMAT
PURSUANT TO GENERAL INSTRUCTION H (2) OF FORM 10-Q.


                                       1
<PAGE>


PART I.  FINANCIAL INFORMATION

ITEM I.  FINANCIAL STATEMENTS


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       (IN THOUSANDS, EXCEPT PAR AMOUNTS)

<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30,       DECEMBER 31,
                                                                          2000                 1999
                                                                      ---------------     --------------
<S>                                                                   <C>                  <C>
                                                                       (Unaudited)              Note
                            ASSETS

Current assets:
   Cash and cash equivalents                                            $    26,468          $   24,117
   Restricted and segregated cash                                                --             187,315
   Accounts receivable, net                                                  24,995              16,797
   Prepaid expenses and other current assets                                 12,481              11,716
   Due from Loral companies                                                   2,000                 181
                                                                      ---------------     --------------
Total current assets                                                         65,944             240,126

Property and equipment, net                                                 713,165             767,477
Costs in excess of net assets acquired                                      581,588             593,219
Deferred income taxes                                                        46,865              49,223
Other assets, net                                                            31,105              34,242
                                                                      ---------------     --------------
TOTAL ASSETS                                                            $ 1,438,667          $1,684,287
                                                                      ===============     ==============

                LIABILITIES AND STOCKHOLDER'S EQUITY

Current liabilities:
   Current portion of long-term debt                                    $     2,366          $    2,071
   Accounts payable                                                           4,262               3,098
   Satellite purchase price payable                                              --             181,928
   Accrued and other current liabilities                                     14,153              13,995
   Customer deposits                                                          6,466               9,069
   Deferred revenue                                                          17,889               2,624
   Interest payable                                                          10,385              22,842
   Note payable to Loral SpaceCom                                            97,491              74,114
   Due to Loral companies                                                     4,124              51,538
                                                                      ---------------     --------------
Total current liabilities                                                   157,136             361,279

Long-term debt                                                              989,151             963,299
Deferred revenue                                                                 --               5,957
Customer deposits                                                             4,642                  --
Other long-term liabilities                                                     125                 448
Due to Space Systems/Loral                                                    5,900               5,900

Commitments and contingencies
Stockholder's equity:
   Common stock, $.01 par value                                                  --                  --
   Capital in excess of par value                                           588,198             544,176
   Unearned compensation                                                       (204)             (1,804)
   Accumulated other comprehensive loss                                      (1,981)               (824)
   Accumulated deficit                                                     (304,300)           (194,144)
                                                                      ---------------     --------------
Total stockholder's equity                                                  281,713             347,404
                                                                      ---------------     --------------
TOTAL LIABILITIES AND STOCKHOLDER'S  EQUITY                              $1,438,667          $1,684,287
                                                                      ===============     ==============
</TABLE>
----------------------
Note: The December 31, 1999 balance sheet has been derived from
   audited consolidated financial statements at that date.


            See notes to condensed consolidated financial statements.


                                       2
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED               NINE MONTHS ENDED
                                                    SEPTEMBER 30,                   SEPTEMBER 30,
                                            ----------------------------    ----------------------------
                                               2000            1999             2000             1999
                                            -----------    -------------    -------------     ----------
<S>                                         <C>             <C>               <C>               <C>
Revenues                                      $  43,517        $  25,168        $ 126,819       $ 71,778

Operating expenses:
   Direct                                        15,250            9,900           48,507         24,097
   Sales and marketing                            5,416            5,581           18,311         17,798
   Engineering and technical services             2,663            2,436            7,755          6,817
   General and administrative                     5,771            3,482           16,617         10,793
   Depreciation and amortization                 27,108           17,741           80,953         51,644
                                            -----------    -------------    -------------     ----------
     Total operating expenses                    56,208           39,140          172,143        111,149

Loss from operations                            (12,691)         (13,972)         (45,324)       (39,371)

   Interest  income                                 340            2,182            3,343          4,253
   Interest expense                             (24,754)         (19,434)         (72,572)       (50,853)
   Other income                                     152               88              514            446
                                            -----------    -------------    -------------     ----------

Loss before income taxes                        (36,953)         (31,136)        (114,039)       (85,525)

Income tax benefit (provision)                    1,946             (486)           3,882          2,153
                                            -----------    -------------    -------------     ----------
Net loss                                      $ (35,007)      $  (31,622)       $(110,157)      $(83,372)
                                            ===========    =============    =============     ==========
</TABLE>



            See notes to condensed consolidated financial statements.


                                       3
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                             NINE MONTHS ENDED SEPTEMBER 30,
                                                           -----------------------------------
                                                                 2000               1999
                                                           ---------------      --------------
<S>                                                         <C>                 <C>
OPERATING ACTIVITIES

Net loss                                                      $  (110,157)       $   (83,372)
Non-cash items:
   Deferred income tax provision                                    2,358              3,168
   Depreciation and amortization                                   80,953             51,644
   Provision for bad debts                                          4,117              1,969
   Non-cash interest expense                                       27,552             25,088
   Interest earned on restricted assets                            (3,518)              (970)
   Other                                                               65                795
Changes in operating assets and liabilities:
   Accounts receivable                                             15,147             (5,164)
   Prepaid expenses and other current assets                         (765)            (5,341)
   Other assets                                                        43             (5,028)
   Accounts payable, accrued liabilities and other
    current liabilities                                               118             (2.014)
   Interest payable                                               (12,457)           (12,456)
   Customer deposits                                                2,040              1,984
   Deferred revenue                                               (18,214)              (142)
   Due from Loral companies                                        (2,000)                --
   Due to Loral companies                                         (37,452)                --
   Due to Space Systems/Loral                                      (9,750)                --
                                                           ---------------      --------------
Net cash used in operating activities                             (61,920)           (29,839)

INVESTING ACTIVITIES

Increase in restricted and segregated cash                            (64)            (1,920)
Uses of and transfers from restricted and
 segregated cash                                                  190,898            143,879
Property and equipment, net                                      (190,269)          (276,978)
                                                           ---------------      --------------
Net cash  provided by (used in) investing activities                  565           (135,019)

FINANCING ACTIVITIES

Gain on sale of orbital slots                                      34,260                 --
Equity contributed from Loral                                      10,750             51,561
Increase in note payable to Loral SpaceCom                         23,081             96,247
Repayment of senior notes and notes payable                        (1,031)              (902)
Payment of satellite incentive obligation                            (207)              (181)
Other                                                              (3,147)            (1,208)
                                                           ---------------      --------------
Net cash provided by financing activities                          63,706            145,517

Net increase (decrease) in cash and cash equivalents                2,351            (19,341)
Cash and cash equivalents at beginning of period                   24,117             35,861
                                                           ---------------      --------------
Cash and cash equivalents at end of period                    $    26,468        $    16,520
                                                           ===============      ==============
</TABLE>

                   See notes to condensed consolidated financial statements.


                                       4
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE A.  BASIS OF PRESENTATION

ORGANIZATION AND BUSINESS

The  principal  business  of Loral  CyberStar,  Inc.  (the  "Company"  or "Loral
CyberStar"),  formerly  known as Orion  Network  Systems,  Inc.  ("Orion" or the
"Predecessor   Company"),   and   its   subsidiary   guarantors   is   providing
satellite-based  communications services for private communications networks and
video distribution and other satellite transmission services. Loral CyberStar is
organized into two distinct operating segments as follows:

     Fixed  Satellite  Services:  Leasing  transponder  capacity  and  providing
     value-added  services  to  customers  for a wide  variety of  applications,
     including  the  distribution  of  broadcast  programming,  news  gathering,
     Internet access and transmission,  business  television,  distance learning
     and  direct-to-home  services.  Loral Skynet,  a division of Loral SpaceCom
     Corporation,  which  is  a  subsidiary  of  Loral  Space  &  Communications
     Corporation,  which is in turn a subsidiary of Loral Space & Communications
     Ltd.  ("Loral"),  manages the Company's  Fixed Satellite  Services  ("FSS")
     assets.

     Data Services:  Providing managed communications  networks and Internet and
     intranet services, using transponder capacity primarily on the Loral Skynet
     and Loral CyberStar fleets.

GENERAL

The accompanying unaudited condensed consolidated financial statements have been
prepared by the Company  pursuant to the rules of the  Securities  and  Exchange
Commission  ("SEC") and, in the opinion of the Company,  include all adjustments
(consisting of normal recurring  accruals)  necessary for a fair presentation of
the results of  operations,  financial  position  and cash flows for the periods
presented.  Certain  information and footnote  disclosures  normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  condensed or omitted  pursuant to SEC rules.  The Company
believes  that  the  disclosures  made  are  adequate  to keep  the  information
presented  from being  misleading.  The results of operations  for the three and
nine months  ended  September  30, 2000 are not  necessarily  indicative  of the
results to be expected for the full year. It is suggested  that these  financial
statements be read in  conjunction  with the  Company's  latest Annual Report on
Form 10-K.



                                       5
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED


COMPREHENSIVE LOSS

Comprehensive loss is as follows (in thousands):

<TABLE>
<CAPTION>
                                             NINE MONTHS ENDED SEPTEMBER 30,
                                           ---------------------------------
                                                2000               1999
                                           --------------     --------------
<S>                                        <C>                <C>
Net loss                                     $  110,157        $    83,372
Cumulative translation adjustment                 1,157              1,095
                                           --------------     --------------
Comprehensive loss                           $  111,314        $    84,467
                                           ==============     ==============
</TABLE>

NOTE B.  LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

<TABLE>
<CAPTION>
                                                                  SEPTEMBER 30,      DECEMBER 31,
                                                                     2000                1999
                                                                 ---------------    -------------
<S>                                                               <C>               <C>
Senior  notes  (including  premium of $54.0  million  and
  $58.7  million at September 30, 2000 and December 31,
  1999 respectively)                                                $  497,005        $ 501,734
Senior discount notes (principal amount
  at maturity $484 million and accreted principal amount
  of $414 million and $378 million at September 30, 2000
  and December 31, 1999, respectively)                                 480,690          448,408
Notes payable - TT&C Facility                                            2,699            3,729
Satellite incentive obligation                                          10,921           11,129
Other                                                                      202              370
                                                                 ---------------    -------------
   Total debt                                                          991,517          965,370
       Less current portion                                             (2,366)          (2,071)
                                                                 ---------------    -------------
   Long-term debt                                                   $  989,151        $ 963,299
                                                                 ===============    =============
</TABLE>


In connection  with the Company's  merger with a subsidiary of Loral,  Loral did
not assume the Company's  outstanding debt. Such debt remains outstanding and is
non-recourse to Loral.


                                       6
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED


NOTE C.  NOTE PAYABLE TO LORAL

Loral CyberStar has obtained additional financing (via an intercompany note from
Loral SpaceCom) to complete the construction of its satellite fleet and meet its
operating requirements. Borrowings under this note can be made for periods of 1,
2, 3 or 6 months and bear  interest at LIBOR (6.72% at September  30, 2000) plus
275 basis  points.  The note can be prepaid at any time  without  penalty and is
payable  on  demand.  All  borrowings  under  this note are  subject  to Loral's
approval.  At September  30, 2000,  the  outstanding  amount under this note was
$97.5 million  (including accrued interest of $10.1 million) and is reflected on
the balance sheet as a note payable to Loral SpaceCom.

NOTE D.  DUE (TO) FROM LORAL COMPANIES

Due from Loral companies consist of the following (in thousands):

<TABLE>
<CAPTION>
                                                       SEPTEMBER 30,      DECEMBER 31,
                                                           2000              1999
                                                       -------------      ------------
<S>                                                    <C>               <C>
Due from Space Systems/Loral                             $    1,327         $      --
Due from Loral Space and Communications Corp.                   608                --
Due from Loral Communications Services                           65                --
Due from CyberStar L.P.                                          --               181
                                                       -------------      ------------
                                                         $    2,000         $     181
                                                       =============      ============
</TABLE>

Due to Loral companies consist of the following (in thousands):

<TABLE>
<CAPTION>
                                                     SEPTEMBER 30,      DECEMBER 31,
                                                         2000              1999
                                                    --------------     --------------
<S>                                                  <C>                <C>
Due to Space Systems/Loral                             $       --         $    9,750
Due to Loral Skynet                                         4,052             41,788
Due to CyberStar L.P.                                          72                 --
                                                    --------------     --------------
                                                       $    4,124         $   51,538
                                                    ==============     ==============
</TABLE>

NOTE E.  INCOME TAXES

The Company is included in the  consolidated  U.S.  Federal income tax return of
Loral Space & Communications  Corporation.  Pursuant to a tax sharing  agreement
for the current year with Loral Space & Communications Corporation,  the Company
is entitled to reimbursement for the use of its tax losses, when such losses are
utilized by the consolidated  group;  otherwise,  the Company is required to pay
its  separate  company  income tax  liability  to Loral  Space &  Communications
Corporation.  The Company has a net receivable under this tax sharing  agreement
of approximately $2.8 million and $6.4 million,  and a deferred tax provision of
$0.8  million and $2.4  million,  resulting in a net tax benefit of $1.9 million
and $3.9  million  for the three  and nine  months  ended  September  30,  2000,
respectively.  The  Company's  effective  tax rate of 3.4  percent  for the nine
months ended  September 30, 2000 differs from the federal  statutory  rate of 35
percent   primarily  due  to  the  valuation   allowance   established  for  the
carryforward of the current year tax loss and the non-deductible amortization of
costs in excess of net assets acquired.  The deferred tax asset of $46.9 million
as of September 30, 2000 on the accompanying  consolidated  balance sheet arises
primarily from the tax effect of the temporary  differences between the carrying
amount of the senior notes and the senior  discount  notes payable for financial
and income tax purposes.


                                       7
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED

NOTE F.  SEGMENTS

The  Company's  two  operating  segments are Fixed  Satellite  Services and Data
Services (see Note A).

In  evaluating  financial  performance,  management  uses  revenues and earnings
before  interest,  taxes and  depreciation  and  amortization  ("EBITDA") as the
measure  of  a  segment's  profit  or  loss.  Summarized  financial  information
concerning the Company's operating segments is as follows (in millions):

                      THREE MONTHS ENDED SEPTEMBER 30, 2000
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                           FIXED                      TOTAL
                                         SATELLITE      DATA        REPORTABLE
                                         SERVICES     SERVICES       SEGMENTS      ELIMINATIONS   CONSOLIDATED
                                        -----------  ----------    -----------     ------------   ------------
<S>                                     <C>          <C>          <C>              <C>            <C>
Revenue from external customers           $   21.5     $  22.6      $     44.1      $   (0.6)      $    43.5
Intersegment revenue                           7.6         0.6             8.2          (8.2)             --
                                        -----------  ----------    -----------     ------------   ------------
Gross revenue                             $   29.1     $  23.2      $     52.3      $   (8.8)      $    43.5
                                        ===========  ==========    ===========     ============   ============
EBITDA (1)                                $   22.3     $  (7.3)     $     15.0      $   (0.6)      $    14.4
Depreciation and amortization                 22.5         4.6            27.1            --            27.1
                                        -----------  ----------    -----------     ------------   ------------
Loss from operations                      $   (0.2)    $ (11.9)     $    (12.1)     $   (0.6)      $   (12.7)
                                        ===========  ==========    ===========     ============   ============
Total assets                              $1,359.5     $  79.2      $  1,438.7      $     --       $ 1,438.7
                                        ===========  ==========    ===========     ============   ============
</TABLE>

                      THREE MONTHS ENDED SEPTEMBER 30, 1999
                                   (UNAUDITED)


<TABLE>
                                           FIXED                    TOTAL
                                         SATELLITE       DATA     REPORTABLE
                                          SERVICES     SERVICES    SEGMENTS     ELIMINATIONS    CONSOLIDATED
                                         ---------    ---------   ----------    ------------    ------------
<S>                                      <C>          <C>         <C>           <C>             <C>
Revenue from external customers          $     8.1    $   17.1     $   25.2      $    --          $   25.2
Intersegment revenue                           1.8          --          1.8         (1.8)               --
                                         ---------    ---------   ----------    ------------    ------------
Gross revenue                            $     9.9    $   17.1     $   27.0      $  (1.8)         $   25.2
                                         =========    =========   ==========    ============    ============
EBITDA (1)                               $     6.1    $   (2.4)    $    3.7      $    --          $    3.7
Depreciation and amortization                 13.7         4.0         17.7           --              17.7
                                         ---------    ---------   ----------    ------------    ------------
Loss from operations                     $    (7.6)   $   (6.4)    $  (14.0)     $    --          $  (14.0)
                                         =========    =========   ==========    ============    ============
Total assets                             $ 1,608.5    $   71.4     $1,679.9      $    --          $1,679.9
                                         =========    =========   ==========    ============    ============
</TABLE>

-------------------------
(1)   EBITDA (which is equivalent to operating income (loss) before depreciation
      and  amortization,  including  amortization of unearned  compensation)  is
      provided  because  it is a  measure  commonly  used in the  communications
      industry  to  analyze  companies  on the basis of  operating  performance,
      leverage and  liquidity and is presented to enhance the  understanding  of
      the Company's operating results.  However,  EBITDA should not be construed
      as an alternative  to net income as an indicator of a company's  operating
      performance,  or cash flow from  operations  as a measure  of a  company's
      liquidity. EBITDA may be calculated differently and, therefore, may not be
      comparable to similarly titled measures reported by other companies.


                                       8
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED

                      NINE MONTHS ENDED SEPTEMBER 30, 2000
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                      FIXED                       TOTAL
                                     SATELLITE        DATA      REPORTABLE
                                     SERVICES       SERVICES     SEGMENTS    ELIMINATIONS   CONSOLIDATED
                                     ---------      --------    ----------   ------------   ------------
<S>                                  <C>           <C>          <C>          <C>            <C>
Revenue from external customers       $  57.2       $  71.0       $ 128.2       $  (1.4)        $ 126.8
Intersegment revenue                     17.8           0.6         18.4          (18.4)             --
                                     ---------      --------    ----------   ------------   ------------
Gross revenue                         $  75.0       $  71.6       $ 146.6       $ (19.8)        $ 126.8
                                     =========      ========    ==========   ============   ============
EBITDA(1)                             $  53.2       $ (16.2)      $  37.0       $  (1.4)        $  35.6
Depreciation and amortization            67.4          13.5          80.9            --            80.9
                                     ---------      --------    ----------   ------------   ------------
Loss from operations                  $ (14.2)      $ (29.7)      $ (43.9)      $  (1.4)        $ (45.3)
                                     =========      ========    ==========   ============   ============
</TABLE>


                      NINE MONTHS ENDED SEPTEMBER 30, 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                        FIXED                  TOTAL
                                      SATELLITE      DATA     REPORTABLE
                                       SERVICES    SERVICES   SEGMENTS    ELIMINATIONS    CONSOLIDATED
                                     ----------   ---------   ----------  ------------    ------------
<S>                                  <C>          <C>         <C>         <C>            <C>
Revenue from external customers      $  22.9      $  48.9      $  71.8      $   --          $  71.8
Intersegment revenue                     5.3         --            5.3        (5.3)              --
                                     ----------   ---------   ----------  ------------    ------------
Gross revenue                        $  28.2      $  48.9      $  77.1      $ (5.3)         $  71.8
                                     ==========   =========   ==========  ============    ============
EBITDA(1)                            $  17.4      $  (5.1)     $  12.3      $   --          $  12.3
Depreciation and amortization           40.6         11.0         51.6          --             51.6
                                     ----------   ---------   ----------  ------------    ------------
Loss from operations                 $ (23.2)     $ (16.1)     $ (39.3)     $   --          $ (39.3)
                                     ==========   =========   ==========  ============    ============
</TABLE>




                                       9
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED


NOTE G. COMMITMENTS AND CONTINGENCIES

Telstar 11  (formerly  Orion 1) -- In November  1995,  a component on Telstar 11
malfunctioned,  resulting in a 2-hour service  interruption.  The malfunctioning
component  supported nine  transponders  serving the European portion of Telstar
11's  footprint.  Full service was restored using a back-up  component.  If that
back-up component fails,  Telstar 11 would lose a significant  amount of useable
capacity.  In such  event,  while the Company  would be  entitled  to  insurance
proceeds of  approximately  $195 million as of September 30, 2000 and would seek
to lease  replacement  capacity and function as a reseller  with respect to such
capacity,  the loss of  capacity  would  have a material  adverse  effect on the
Company.

Telstar 12  (formerly  Orion 2) -- Telstar  12, a high power  satellite  with 38
Ku-band  transponders,  expands Loral CyberStar's  European coverage and extends
coverage to portions of the former Soviet Union, Latin America,  the Middle East
and South Africa.  Telstar 12 was launched  aboard an Ariane  launch  vehicle in
October 1999 into 15 degrees  W.L.,  and  commenced  operations in January 2000.
Although Telstar 12 was originally intended to operate at 12 degrees W.L., Loral
CyberStar reached an agreement with Eutelsat to operate Telstar 12 at 15 degrees
W.L.  while  Eutelsat  continued  to develop its  services at 12.5  degrees W.L.
Eutelsat has in turn agreed not to use its 14.8 degrees W.L. orbital slot and to
assert its priority rights at such location on Loral CyberStar's behalf. As part
of this coordination  effort, Loral CyberStar agreed to provide to Eutelsat four
transponders  on Telstar 12 for the life of the  satellite and retained the risk
of loss.  Eutelsat also has the right to acquire,  at cost, four transponders on
the next  replacement  satellite  for Telstar  12. As part of the  international
coordination  process, the Company continues to conduct discussions with various
administrations  regarding  Telstar 12's  operations at 15 degrees W.L. If these
discussions are not successful, Telstar 12's useable capacity may be reduced.

Agreements  with Loral Skynet -- Loral  CyberStar  and Loral Skynet have entered
into  agreements  (the "Loral  Skynet  Agreements")  effective  January 1, 1999,
whereby  Loral Skynet  provides to Loral  CyberStar  (i)  marketing and sales of
satellite capacity services on the Loral CyberStar satellite network and related
billing and  administration of customer contracts for those services (the "Sales
Services")  and (ii)  telemetry,  tracking  and control  services  for the Loral
CyberStar  satellite  network (the "Technical  Services",  and together with the
Sales Services, the "Services"). Loral CyberStar is charged Loral Skynet's costs
for providing these services plus a 5 percent administrative fee.

Litigation -- The Company is party to various  litigation  arising in the normal
course of its operations.  In the opinion of management,  the ultimate liability
for  these  matters,  if any,  will not have a  material  adverse  effect on the
Company's financial position or results of operations.

Based upon its current expectations for growth,  Loral CyberStar  anticipates it
will have additional funding  requirements over the next three years to fund the
streaming  media  investment,  the  purchase  of  VSATs,  senior  note  interest
payments,  other capital expenditures and other operating needs. Loral CyberStar
will need to secure funding from Loral,  or raise  additional  financing to fund
these requirements.  Sources of additional capital may include public or private
debt,  equity  financings  or  strategic  investments.  To the extent that Loral
CyberStar seeks to raise  additional debt  financing,  its indentures  limit the
amount of such  additional  debt and prohibit Loral CyberStar from using Telstar
11,  Telstar  10/Apstar IIR and Telstar 12 as collateral  for  indebtedness  for
money borrowed.  If Loral CyberStar requires additional  financing and is unable
to obtain such financing  from Loral or from outside  sources in the amounts and
at the  times  needed,  there  would  be a  material  adverse  effect  on  Loral
CyberStar.

NOTE H.  SALE OF KA-BAND SLOTS

On March 24, 2000,  Loral CyberStar  entered into an agreement with a subsidiary
of Loral to assign to the Loral subsidiary,  pending  regulatory  approval,  its
Ka-band orbital slots located at 89 degrees W.L., 81 degrees W.L., 78


                                       10
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
   NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED


degrees E.L.  and 47 degrees W.L. In  connection  with this  transaction,  Loral
CyberStar  also  agreed to  transfer  to the Loral  subsidiary  all  agreements,
including  satellite  construction  contracts,  related to such slots. The total
sale price for the slots and these agreements was $36.5 million,  of which $34.5
million was received in the first quarter of 2000 and applied by Loral CyberStar
towards the last  installment  payment on Telstar  10/Apstar  IIR. The remaining
$2.0 million was received in the second quarter of 2000. In connection  with the
sale, the Company recorded a gain of approximately  $34 million.  Since the sale
was to a subsidiary of Loral, the gain was credited directly to equity.

NOTE I.  RECLASSIFICATIONS

Certain prior period  amounts have been  reclassified  to conform to the current
period presentation.







                                       11
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS


ITEM 2.  MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

Except for the historical information contained herein, the matters discussed in
this Management's Narrative Analysis of Results of Operations are not historical
facts, but are  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
CyberStar,  Loral or their 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 Loral CyberStar or
Loral with the Securities  and Exchange  Commission  ("SEC"),  press releases or
oral statements made by or with the approval of an authorized  executive officer
of  Loral   CyberStar  or  Loral.   They  can  be   identified  by  the  use  of
forward-looking  words such as "believes",  "expects",  "plans",  "may", "will",
"should" or  "anticipates" or their negatives or other variations of these words
or other comparable  words, or by discussions of strategy that involve risks and
uncertainties.  The forward-looking statements are only predictions,  and actual
events or results could differ  materially  from those projected or suggested in
any  forward-looking  statements  as a result of a wide  variety  of  factors or
conditions,  many of which  are  beyond  the  Company's  control.  Some of these
factors and conditions  include:  (i) the Company has substantial debt; (ii) the
Company's debt imposes  restrictions and otherwise affects the Company's ability
to undertake certain actions;  (iii) the Company has funding requirements;  (iv)
the Company's satellites may fail prematurely;  (v) the Company cannot guarantee
successful  coordination  for its satellites;  and (vi) the Company faces severe
competition.  For a detailed discussion of these factors and conditions,  please
refer to the  Company's  most recent  Annual  Report on Form 10-K filed with the
SEC.

GENERAL

The  principal  business  of Loral  CyberStar,  Inc.  (the  "Company"  or "Loral
CyberStar"),  formerly  known as Orion  Network  Systems,  Inc.  ("Orion" or the
"Predecessor  Company"),  and  its  subsidiaries  is  providing  satellite-based
communications   services   for  private   communications   networks  and  video
distribution  and other  satellite  transmission  services.  Loral  CyberStar is
organized into two distinct operating segments as follows:

     Fixed  Satellite  Services:  Leasing  transponder  capacity  and  providing
     value-added  services  to  customers  for a wide  variety of  applications,
     including  the  distribution  of  broadcast  programming,  news  gathering,
     Internet access and transmission,  business  television,  distance learning
     and  direct-to-home  services.  Loral Skynet,  a division of Loral SpaceCom
     Corporation,  which  is  a  subsidiary  of  Loral  Space  &  Communications
     Corporation,  which is in turn a subsidiary of Loral Space & Communications
     Ltd.  ("Loral"),  manages the Company's  Fixed Satellite  Services  ("FSS")
     assets.

     Data Services:  Providing managed communications  networks and Internet and
     intranet services, using transponder capacity primarily on the Loral Skynet
     and Loral CyberStar fleets.

KA-BAND SLOTS

On March 24, 2000,  Loral CyberStar  entered into an agreement with a subsidiary
of Loral to assign to the Loral subsidiary,  pending  regulatory  approval,  its
Ka-band  orbital  slots  located at 89 degrees W.L., 81 degrees W.L., 78 degrees
E.L. and 47 degrees W.L. In connection  with this  transaction,  Loral CyberStar
also  agreed to  transfer  to the Loral  subsidiary  all  agreements,  including
satellite construction contracts,  related to such slots. The sale price for the
slots and these  agreements  was  $36.5  million,  of which  $34.5  million  was
received in the first quarter of 2000 and applied by Loral CyberStar towards the
last  installment  payment on Telstar  10/Apstar IIR. The remaining $2.0 million
was received in the second quarter of 2000.


                                       12
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
                                   (CONTINUED)


COMMITMENTS AND CONTINGENCIES

Telstar 11  (formerly  Orion 1) -- In November  1995,  a component on Telstar 11
malfunctioned,  resulting in a 2-hour service  interruption.  The malfunctioning
component  supported nine  transponders  serving the European portion of Telstar
11's  footprint.  Full service was restored using a back-up  component.  If that
back-up component fails,  Telstar 11 would lose a significant  amount of useable
capacity.  In such  event,  while the Company  would be  entitled  to  insurance
proceeds of  approximately  $195 million as of September 30, 2000 and would seek
to lease  replacement  capacity and function as a reseller  with respect to such
capacity,  the loss of  capacity  would  have a material  adverse  effect on the
Company.

Telstar 12  (formerly  Orion 2) -- Telstar  12, a high power  satellite  with 38
Ku-band  transponders,  expands Loral CyberStar's  European coverage and extends
coverage to portions of the former Soviet Union, Latin America,  the Middle East
and South Africa.  Telstar 12 was launched  aboard an Ariane  launch  vehicle in
October 1999 into 15 degrees  W.L.,  and  commenced  operations in January 2000.
Although Telstar 12 was originally intended to operate at 12 degrees W.L., Loral
CyberStar reached an agreement with Eutelsat to operate Telstar 12 at 15 degrees
W.L.  while  Eutelsat  continued  to develop its  services at 12.5  degrees W.L.
Eutelsat has in turn agreed not to use its 14.8 degrees W.L. orbital slot and to
assert its priority rights at such location on Loral CyberStar's behalf. As part
of this coordination  effort, Loral CyberStar agreed to provide to Eutelsat four
transponders  on Telstar 12 for the life of the  satellite and retained the risk
of loss.  Eutelsat also has the right to acquire,  at cost, four transponders on
the next  replacement  satellite  for Telstar  12. As part of the  international
coordination  process, the Company continues to conduct discussions with various
administrations  regarding  Telstar 12's  operations at 15 degrees W.L. If these
discussions are not successful, Telstar 12's useable capacity may be reduced.

Agreements  with Loral Skynet -- Loral  CyberStar  and Loral Skynet have entered
into  agreements  (the "Loral  Skynet  Agreements")  effective  January 1, 1999,
whereby  Loral Skynet  provides to Loral  CyberStar  (i)  marketing and sales of
satellite capacity services on the Loral CyberStar satellite network and related
billing and  administration of customer contracts for those services (the "Sales
Services")  and (ii)  telemetry,  tracking  and control  services  for the Loral
CyberStar  satellite  network (the "Technical  Services",  and together with the
Sales Services, the "Services"). Loral CyberStar is charged Loral Skynet's costs
for providing these services plus a 5 percent administrative fee.

Litigation -- The Company is party to various  litigation  arising in the normal
course of its operations.  In the opinion of management,  the ultimate liability
for  these  matters,  if any,  will not have a  material  adverse  effect on the
Company's financial position or results of operations.

Based upon its current expectations for growth,  Loral CyberStar  anticipates it
will have additional funding  requirements over the next three years to fund the
streaming  media  investment,  the  purchase  of  VSATs,  senior  note  interest
payments,  other capital expenditures and other operating needs. Loral CyberStar
will need to secure funding from Loral,  or raise  additional  financing to fund
these requirements.  Sources of additional capital may include public or private
debt,  equity  financings  or  strategic  investments.  To the extent that Loral
CyberStar seeks to raise  additional debt  financing,  its indentures  limit the
amount of such  additional  debt and prohibit Loral CyberStar from using Telstar
11,  Telstar  10/Apstar IIR and Telstar 12 as collateral  for  indebtedness  for
money borrowed.  If Loral CyberStar requires additional  financing and is unable
to obtain such financing  from Loral or from outside  sources in the amounts and
at the  times  needed,  there  would  be a  material  adverse  effect  on  Loral
CyberStar.


                                       13
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
                                   (CONTINUED)


RESULTS OF OPERATIONS

In  evaluating  financial  performance,  management  uses  revenues and earnings
before interest, taxes, depreciation and amortization ("EBITDA") as a measure of
a segment's profit or loss. See Note E to the unaudited  condensed  consolidated
financial statements for additional information on segment results.

OPERATING REVENUES (IN MILLIONS):

<TABLE>
<CAPTION>
                                    THREE MONTHS ENDED      NINE MONTHS ENDED
                                      SEPTEMBER 30,           SEPTEMBER 30,
                                 ----------------------   ---------------------
                                     2000      1999          2000       1999
                                 ----------  ----------   ---------   ---------
<S>                              <C>         <C>          <C>         <C>
Fixed satellite services         $   29.1     $  9.9      $   75.0      $ 28.2
Data services                        23.2       17.1          71.6        48.9
Eliminations                         (8.8)      (1.8)        (19.8)       (5.3)
                                 ----------  ----------   ---------   ---------
Operating revenues               $   43.5     $ 25.2      $  126.8      $ 71.8
                                 ==========  ==========   =========   =========
</TABLE>


EBITDA(1) (IN  MILLIONS):

<TABLE>
<CAPTION>
                                    THREE MONTHS ENDED      NINE MONTHS ENDED
                                      SEPTEMBER 30,           SEPTEMBER 30,
                                 ----------------------   ---------------------
                                     2000      1999          2000       1999
                                 ----------  ----------   ---------   ---------
<S>                              <C>         <C>          <C>         <C>
Fixed satellite services           $ 22.3      $ 6.1       $  53.2      $ 17.4
Data services                        (7.3)      (2.4)        (16.2)       (5.1)
Eliminations                         (0.6)        --          (1.4)         --
                                 ----------  ----------   ---------   ---------
EBITDA                             $ 14.4      $ 3.7       $  35.6      $ 12.3
                                 ==========  ==========   =========   =========
</TABLE>

-----------------------------
1  EBITDA (which is equivalent  to operating  income (loss) before  depreciation
   and  amortization,   including  amortization  of  unearned  compensation)  is
   provided because it is a measure commonly used in the communications industry
   to analyze  companies  on the basis of  operating  performance,  leverage and
   liquidity  and is presented  to enhance the  understanding  of the  Company's
   operating results.  However, EBITDA should not be construed as an alternative
   to net income as an indicator of a company's operating  performance,  or cash
   flow from  operations  as a measure of a company's  liquidity.  EBITDA may be
   calculated  differently  and,  therefore,  may not be comparable to similarly
   titled measures reported by other companies.


                                       14
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
                                  (CONTINUED))

Revenue and Backlog.  Total  revenues for the three months ended  September  30,
2000 and September 30, 1999 were $43.5 million and $25.2 million,  respectively.
Total  revenues for the nine months ended  September  30, 2000 and September 30,
1999 were $126.8 million and $71.8 million,  respectively.  These  increases are
primarily attributable to improved results in the private communications network
services  operations,  which added 236 and 216 customer  sites for the three and
nine months ended  September  30, 2000, as compared to the same periods in 1999,
the service commencement of Telstar 12 and Telstar 10/Apstar IIR after the third
quarter of 1999;  and an equipment  sale of $3.3 million in the first quarter of
2000.

At September 30, 2000,  the Company had backlog  (representing  future  revenues
under contract) of approximately  $1,069.8 million compared to $479.7 million at
September 30, 1999.  Revenue from customer  contract backlog is typically earned
over two to five years.

Direct  Expenses.  Direct expenses for the three months ended September 30, 2000
and September 30,1999 were $15.3 million and $9.9 million, respectively.  Direct
expenses for the nine months ended  September  30, 2000 and  September  30, 1999
were  $48.5  million  and  $24.1  million,  respectively.  These  increases  are
primarily  attributable to Internet access,  satellite  transponder  leasing and
terrestrial  link charges that support the Worldcast  Internet  access  product,
increased  in-orbit satellite  insurance  associated with Telstar 12 and Telstar
10/Apstar  IIR and the cost of  equipment  related to an  equipment  sale in the
first quarter of 2000.

Sales and Marketing Expenses.  Sales and marketing expenses for the three months
ended  September  30,  2000 and  September  30,1999  were $5.4  million and $5.6
million,  respectively.  Sales and marketing  expenses for the nine months ended
September 30, 2000 and September 30, 1999 were $18.3 million and $17.8  million,
respectively.

Engineering and Technical Services Expenses.  Engineering and technical services
expenses for the three months ended  September  30, 2000 and  September 30, 1999
were $2.7 million and $2.4  million,  respectively.  Engineering  and  technical
expenses for the nine months ended  September  30, 2000 and  September  30, 1999
were $7.8 million and $6.8  million,  respectively.  These  increases  relate to
additional headcount to support the Internet services product line.

General and Administrative Expenses. General and administrative expenses for the
three months ended  September 30, 2000 and September  30,1999 were $5.8 and $3.5
million,  respectively.  General and administrative expenses for the nine months
ended  September  30, 2000 and  September  30, 1999 were $16.6 million and $10.8
million,  respectively.  These increases primarily relate to additional bad debt
costs for the FSS segment,  expenses  relating to streaming  media  services and
recruiting costs for the data services segment.

Depreciation and  Amortization.  Depreciation  and amortization  expense for the
three months ended  September 30, 2000 and September 30, 1999 were $27.1 million
and $17.7 million,  respectively.  Depreciation and amortization expense for the
nine months ended  September  30, 2000 and September 30, 1999 were $80.9 million
and $51.6  million,  respectively.  These  increases  were  primarily due to the
acquisition  of Telstar  10/Apstar IIR on September 28, 1999 and from Telstar 12
being placed in service in December 1999.

Interest.  Interest  income for the three  months ended  September  30, 2000 and
September  30, 1999 was $0.3 million and $2.2  million,  respectively.  Interest
income for the nine months ended  September  30, 2000 and September 30, 1999 was
$3.3 million and $4.3 million, respectively.  Interest expense was $24.8 million
for the three  months  ended  September  30,  2000,  and $19.4  million,  net of
capitalized  interest of $4.8 million,  for the three months ended September 30,
1999. Interest expense was $72.6 million for the nine months ended September 30,
2000, and $50.9 million,  net of capitalized  interest of $15.9 million, for the
nine months  ended  September  30,  1999.  The  increase in interest  expense is
primarily  due to the  interest  expense  on the  intercompany  debt from  Loral
SpaceCom and the decrease in capitalized interest in 2000.

                                       15
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
                                  (CONTINUED))


Income Taxes.  The Company is included in the  consolidated  U.S. Federal income
tax  return  of Loral  Space &  Communications  Corporation.  Pursuant  to a tax
sharing  agreement  for the  current  year  with  Loral  Space &  Communications
Corporation,  the Company is entitled  to  reimbursement  for the use of its tax
losses, when such losses are utilized by the consolidated group; otherwise,  the
Company is required to pay its separate  company  income tax  liability to Loral
Space & Communications Corporation.  The Company has a net receivable under this
tax sharing  agreement of  approximately  $2.8 million and $6.4  million,  and a
deferred tax provision of $0.8 million and $2.4 million,  resulting in a net tax
benefit of $1.9  million and $3.9  million  for the three and nine months  ended
September  30,  2000,  respectively.  The  Company's  effective  tax rate of 3.4
percent for the nine months  ended  September  30, 2000 differs from the federal
statutory  rate  of  35  percent  primarily  due  to  the  valuation   allowance
established  for  the  carryforward  of  the  current  year  tax  loss  and  the
non-deductible  amortization  of costs in excess  of net  assets  acquired.  The
deferred tax asset of $46.9 million as of September 30, 2000 on the accompanying
consolidated balance sheet arises primarily from the tax effect of the temporary
differences  between  the  carrying  amount of the  senior  notes and the senior
discount notes payable for financial and income tax purposes.

Net Loss.  As a result of the above,  the Company  incurred  net losses of $35.0
million and $31.6  million for the three  months  ended  September  30, 2000 and
1999, respectively.  Net losses for the nine months ended September 30, 2000 and
1999 were $110.2 million and $83.4 million, respectively.

RESULTS BY OPERATING SEGMENT

Fixed Satellite Service

FSS revenue for the three  months  ended  September  30, 2000 was $29.1  million
versus $9.9 million for the three months ended  September 30, 1999.  FSS revenue
for the nine months  ended  September  30, 2000 was $75.0  million  versus $28.2
million for the nine  months  ended  September  30,  1999.  EBITDA for the three
months ended  September 30, 2000 was $22.3  million,  or 77 percent of revenues,
versus $6.1  million,  or 62 percent of  revenues,  for the three  months  ended
September  30,  1999.  EBITDA for the nine months ended  September  30, 2000 was
$53.2 million, or 71 percent of revenues,  versus $17.4 million or 62 percent of
revenues, for the nine months ended September 30, 1999. These increases were due
in part to the faster than expected loading of Telstar 12 and Telstar  10/Apstar
IIR after the third quarter of 1999 and the intercompany leasing charges to data
services for capacity.

Data Services

Revenues for the Data Services  segment for the three months ended September 30,
2000 was $23.2 million versus $17.1 million for the three months ended September
30, 1999.  Data Services  revenues for the nine months ended  September 30, 2000
and 1999 were $71.6 million and $48.9  million,  respectively.  These  increases
were mainly due to the added customer sites in 2000, as compared to 1999. EBITDA
for the three months ended  September 30, 2000 was a loss of $7.3 million versus
a loss of $2.4 million for the three months ended September 30, 1999. EBITDA for
the nine  months  ended  September  30, 2000 was a loss of  approximately  $16.2
million  versus a loss of $5.1 million for the nine months ended  September  30,
1999. The increases in EBITDA losses in 2000 were primarily due to the increased
direct costs from both third party and intercompany  leasing activities incurred
in connection with the expansion of the business.

OTHER MATTERS

Accounting Pronouncements

In June 1998, the Financial  Accounting Standards Board issued Statement No. 133
Accounting for Derivative Instruments and Hedging Activities ("SFAS 133"), which
requires that all derivative instruments be recorded on


                                       16
<PAGE>

                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)
            MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
                                  (CONTINUED))


the balance sheet at their fair value.  Changes in the fair value of derivatives
are  recorded  each period in current  earnings or other  comprehensive  income,
depending on whether a derivative is  designated as part of a hedge  transaction
and, if it is, the type of hedge transaction.  The Company has not yet completed
its review of the impact that the adoption of SFAS 133 will have, however, based
on its  evaluation  to date,  the Company  does not believe  that it will have a
significant  effect on its  earnings  or  financial  position.  The  Company  is
required to adopt SFAS 133 on January 1, 2001.






                                       17
<PAGE>


                              LORAL CYBERSTAR, INC.
     (A WHOLLY OWNED SUBSIDIARY OF LORAL SPACE & COMMUNICATIONS CORPORATION)


PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) Exhibits:

             27  Financial Data Schedule

         (b) Reports on Form 8-K:

             None.



                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                          LORAL CYBERSTAR, INC.
                                          ---------------------
                                                Registrant


Date:  November 13, 2000               /s/ RICHARD J. TOWNSEND
                                     -------------------------------------
                                              Richard J. Townsend
                               Senior Vice President and Chief Financial Officer
                                         (Principal Financial Officer
                                      and Registrant's Authorized Officer)







                                       18