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 JUNE 30, 2001



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


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

                  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)


                                  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.




<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>

                                                                                   JUNE 30,               DECEMBER 31,
                                                                                     2001                     2000
                                                                                  -----------             ------------
                                                                                  (Unaudited)                  Note
<S>                                                                               <C>                     <C>

                                       ASSETS

Current assets:
   Cash and cash equivalents                                                      $    47,847             $    37,169
   Accounts receivable, net                                                            22,944                  22,204
   Prepaid expenses and other current assets                                            5,530                   8,218
   Due from Loral companies                                                            11,271                   9,545
                                                                                  -----------             -----------
Total current assets                                                                   87,592                  77,136

Property and equipment, net                                                           660,236                 702,311
Costs in excess of net assets acquired                                                569,956                 577,710
Deferred income taxes                                                                  42,413                  44,982
Other assets, net                                                                      25,609                  26,810
                                                                                  -----------             -----------

TOTAL ASSETS                                                                      $ 1,385,806             $ 1,428,949
                                                                                  ===========             ===========

                        LIABILITIES AND STOCKHOLDER'S EQUITY

Current liabilities:
   Current portion of long-term debt                                              $     2,895             $     2,551
   Accounts payable                                                                     6,415                   7,368
   Accrued and other current liabilities                                               14,921                  11,366
   Customer deposits                                                                    4,234                   7,062
   Deferred revenue                                                                     7,012                   5,691
   Interest payable                                                                    22,843                  22,846
   Note payable to Loral SpaceCom                                                     104,669                 107,866
   Due to Loral companies                                                               8,348                   4,495
                                                                                  -----------             -----------
Total current liabilities                                                             171,337                 169,245
Long-term debt                                                                      1,016,366                 997,991
Deferred revenue                                                                          859                     998
Customer deposits                                                                       4,518                   5,413
Other long-term liabilities                                                              --                       125
Commitments and contingencies (Note G)
Stockholder's equity:
   Common stock, $.01 par value                                                          --                      --
   Capital in excess of par value                                                     588,197                 588,197
   Accumulated deficit                                                               (393,124)               (331,562)
   Accumulated other comprehensive loss                                                (2,347)                 (1,458)
                                                                                  -----------             -----------

Total stockholder's equity                                                            192,726                 255,177
                                                                                  -----------             -----------

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY                                        $ 1,385,806             $ 1,428,949
                                                                                  ===========             ===========

</TABLE>

--------------------

Note:  The December 31, 2000 balance sheet has been derived from the
     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)

<TABLE>

                                                  THREE MONTHS ENDED                      SIX MONTHS ENDED
                                                        JUNE 30,                               JUNE 30,
                                              ----------------------------          ----------------------------
                                                 2001               2000               2001               2000
                                              ---------          ---------          ---------          ---------
<S>                                           <C>                <C>                <C>                <C>

Revenues                                      $  49,239          $  41,120          $  99,458          $  83,302

Operating expenses:
   Direct                                        15,066             16,458             30,921             33,257
   Sales and marketing                            5,371              6,996             11,580             12,895
   Engineering and technical services             2,355              2,660              6,435              5,092
   General and administrative                     4,174              5,850              8,565             10,846
   Depreciation and amortization                 27,709             26,876             54,973             53,845
                                              ---------          ---------          ---------          ---------
Total operating expenses                         54,675             58,840            112,474            115,935
                                              ---------          ---------          ---------          ---------

Loss from operations                             (5,436)           (17,720)           (13,016)           (32,633)

   Interest  income                                 403                622                617              3,003
   Interest expense                             (24,843)           (24,052)           (50,082)           (47,818)
   Other income                                      71                150                179                362
                                              ---------          ---------          ---------          ---------

Loss before income taxes                        (29,805)           (41,000)           (62,302)           (77,086)

Income tax benefit                                  502              2,898                738              1,936
                                              ---------          ---------          ---------          ---------

Net loss                                      $ (29,303)         $ (38,102)         $ (61,564)         $ (75,150)
                                              =========          =========          =========          =========

</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>


                                                                              SIX MONTHS ENDED JUNE 30,
                                                                         ---------------------------------
                                                                            2001                    2000
                                                                         ---------               ---------
<S>                                                                      <C>                     <C>
OPERATING ACTIVITIES
Net loss                                                                 $ (61,564)              $ (75,150)
Non-cash items:
   Deferred taxes                                                            2,569                   1,550
   Depreciation and amortization                                            54,973                  53,845
   Provision for bad debts                                                   1,174                   2,654
   Non-cash interest expense                                                19,882                  18,103
   Interest earned on restricted cash                                         --                    (3,308)
Changes in operating assets and liabilities:
   Accounts receivable                                                      (1,914)                (39,941)
   Prepaid expenses and other current assets                                 2,688                  (3,411)
   Due from Loral companies                                                 (1,726)                (11,825)
   Other assets                                                             (1,259)                    197
   Accounts payable and accrued and other current
        liabilities                                                          2,602                  (2,308)
   Customer deposits                                                        (3,723)                    767
   Deferred revenue                                                          1,182                  28,147
   Interest payable                                                             (3)                   --
   Due to Loral companies                                                    3,853                 (23,901)
                                                                         ---------               ---------
Net cash provided by (used in) operating activities                         18,734                 (54,481)
                                                                         ---------               ---------

INVESTING ACTIVITIES
Property and equipment                                                      (2,876)               (186,657)
Increase in restricted and segregated cash                                    --                       (64)
Use and transfers from restricted and
   segregated cash                                                            --                   165,625
                                                                         ---------               ---------
Net cash used in investing activities                                       (2,876)                (21,096)
                                                                         ---------               ---------

FINANCING ACTIVITIES
(Decrease) increase in note payable to Loral SpaceCom                       (3,197)                 23,067
Repayment of notes payable                                                    (772)                   (676)
Payment of satellite incentive obligation                                     (288)                   (136)
Proceeds from sale of orbital slots to Loral, net                             --                    34,260
Equity contributed from Loral                                                 --                    10,750
Other                                                                         (923)                 (2,135)
                                                                         ---------               ---------
Net cash (used in) provided by financing activities                         (5,180)                 65,130
                                                                         ---------               ---------

Net increase (decrease) in cash and cash equivalents                        10,678                 (10,447)
Cash and cash equivalents at beginning of period                            37,169                  24,117
                                                                         ---------               ---------
Cash and cash equivalents at end of period                               $  47,847               $  13,670
                                                                         =========               =========

</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 (See Note F):

     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,
     business television, distance learning and direct-to-home services. Loral
     Skynet, a division of Loral SpaceCom Corporation ("Loral SpaceCom"), 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") segment.

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

On March 20, 1998, Orion was acquired by Loral, through the merger with a wholly
owned subsidiary of Loral (the "Merger").

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 accounting principles generally
accepted in the U. S. 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 six
months ended June 30, 2001 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.

COMPREHENSIVE LOSS

Comprehensive loss is as follows (in thousands):

                                                  SIX MONTHS ENDED JUNE 30,
                                                  -------------------------
                                                       2001        2000
                                                    ---------   ---------

        Net loss.................................   $ 61,564    $  75,150
        Foreign currency translation adjustment..        889          636
                                                    --------    ---------
        Comprehensive loss........................  $ 62,453    $  75,786
                                                    ========    =========

EARNINGS PER SHARE

Earnings per share is not presented since it is not considered meaningful due to
the Merger and the subsequent recapitalization of the Company.


                                       5

<PAGE>


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

NOTE B.  LONG-TERM DEBT

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

<TABLE>


                                                                                JUNE 30,              DECEMBER 31,
                                                                                  2001                    2000
                                                                               -----------            -----------
<S>                                                                            <C>                    <C>

11.25% Senior Notes (principal amount at maturity $443 million and
   premium of $49.0 million and $52.4 million at June 30, 2001 and
   December 31, 2000, respectively)...............................             $   491,989            $   495,377
12.5% Senior Discount Notes (principal amount at maturity $484
   million and accreted principal amount of $453 million and $427
   million at June 30, 2001 and December 31, 2000, respectively)                   515,110                491,841
Note payable - TT&C Facility......................................                   1,559                  2,331
Satellite incentive obligations...................................                  10,560                 10,848
Other.............................................................                      43                    145
                                                                               -----------            -----------
   Total debt.....................................................               1,019,261              1,000,542
Less current portion..............................................                  (2,895)                (2,551)
                                                                               -----------            -----------
   Long-term debt.................................................             $ 1,016,366            $   997,991
                                                                               ===========            ===========

</TABLE>


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

NOTE C.  NOTE PAYABLE TO LORAL

Loral CyberStar 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 (4.73 percent at June 30, 2001) 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
SpaceCom's approval. At June 30, 2001, the outstanding amount under this note
was $104.7 million (including accrued interest of $12.4 million) and is
reflected on the balance sheet as a note payable to Loral SpaceCom. Such
borrowings and accrued interest totaled $107.9 million at December 31, 2000.

NOTE D.  RELATED PARTY TRANSACTIONS

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

<TABLE>


                                                                  June 30,    December 31,
                                                                    2001          2000
                                                                  --------      -------
     <S>                                                          <C>           <C>

     Due from CyberStar L.P................................       $  7,913      $ 7,960
     Due from Loral Space and Communications Corp..........          1,164        1,165
     Due from Loral Communications Services................             83           67
     Due from Space Systems/Loral..........................          2,111          353
                                                                  --------      -------
                                                                  $ 11,271      $ 9,545
                                                                  ========      =======

</TABLE>




                                       6

<PAGE>


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

NOTE D.  RELATED PARTY TRANSACTIONS (CONTINUED)

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

                                             JUNE 30,    DECEMBER 31,
                                               2001          2000
                                             -------       -------

         Due to Loral Skynet .............   $ 7,892       $ 4,038
         Due to Loral ....................       456           456
         Due to Space Systems/Loral.......        --             1
                                             -------       -------
                                             $ 8,348       $ 4,495
                                             =======       =======

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 recorded a net receivable under this tax sharing
agreement of approximately $1.9 million and $3.4 million and a deferred tax
provision of $1.4 million and $2.6 million resulting in a net tax benefit of
$0.5 million and $0.7 million for the three and six months ended June 30, 2001.

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):


                                       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 (CONTINUED)

<TABLE>
                                                  THREE MONTHS ENDED JUNE 30, 2001
                                                            (UNAUDITED)


                                                  FIXED                           TOTAL
                                                SATELLITE          DATA         REPORTABLE
                                                SERVICES         SERVICES        SEGMENTS     ELIMINATIONS    CONSOLIDATED
                                                ----------       --------       ----------    ------------    ------------

<S>                                             <C>              <C>            <C>              <C>           <C>
Revenue from external customers.........        $     27.6       $   21.7       $     49.3       $  (0.1)      $     49.2
Intersegment revenue....................               5.5           --                5.5          (5.5)            --
                                                ----------       --------       ----------       -------       ----------
Gross revenue...........................        $     33.1       $   21.7       $     54.8       $  (5.6)      $     49.2
                                                ==========       ========       ==========       =======       ==========
EBITDA(1)...............................        $     27.6       $   (5.2)      $     22.4       $  (0.1)      $     22.3
Depreciation and amortization...........              22.3            5.4             27.7           --              27.7
                                                ----------       --------       ----------       -------       ----------
Income (loss) from operations...........        $      5.3       $  (10.6)      $     (5.3)      $  (0.1)      $     (5.4)
                                                ----------       --------       ----------       -------       ----------
Total assets............................        $  1,273.6       $  112.2       $  1,385.8       $   --        $  1,385.8
                                                ==========       ========       ==========       =======       ==========


                                                  THREE MONTHS ENDED JUNE 30, 2000
                                                            (UNAUDITED)

                                                  FIXED                           TOTAL
                                                SATELLITE          DATA         REPORTABLE
                                                SERVICES         SERVICES        SEGMENTS     ELIMINATIONS    CONSOLIDATED
                                                ----------       --------       ----------    ------------    ------------

Revenue from external customers..........       $     18.3       $   23.6       $     41.9       $  (0.8)      $     41.1
Intersegment revenue.....................              5.6           --                5.6          (5.6)            --
                                                ----------       --------       ----------     ---------       -----------
Gross revenue............................       $     23.9       $   23.6       $     47.5       $  (6.4)      $     41.1
                                                ==========       ========       ==========       =======       ==========
EBITDA (1)...............................       $     16.0       $   (6.0)      $     10.0       $  (0.8)      $      9.2
Depreciation and amortization............             22.6            4.3             26.9           --              26.9
                                                ----------       --------       ----------     ---------       -----------
Loss from operations.....................       $     (6.6)      $  (10.3)      $    (16.9)      $  (0.8)      $    (17.7)
                                                ==========       ========       ==========       =======       ==========
Total assets.............................       $  1,398.2       $  117.6       $  1,515.8       $   --        $  1,515.8
                                                ==========       ========       ==========       =======       ==========

                                                   SIX MONTHS ENDED JUNE 30, 2001
                                                            (UNAUDITED)

                                                  FIXED                           TOTAL
                                                SATELLITE          DATA         REPORTABLE
                                                SERVICES         SERVICES        SEGMENTS     ELIMINATIONS    CONSOLIDATED
                                                ----------       --------       ----------    ------------    ------------

Revenue from external customers..........       $     54.0       $   45.6       $     99.6       $  (0.1)      $     99.5
Intersegment revenue.....................             11.9           --               11.9         (11.9)            --
                                                ----------       --------       ----------     ---------       -----------
Gross revenue............................       $     65.9       $   45.6       $    111.5       $ (12.0)      $     99.5
                                                ==========       ========       ==========       =======       ==========
EBITDA(1)................................       $     54.0       $  (11.9)      $     42.1       $  (0.1)      $     42.0
Depreciation and amortization............             44.8           10.2             55.0           --              55.0
                                                ----------       --------       ----------     ---------       -----------
Income (loss) from operations............       $      9.2       $  (22.1)      $    (12.9)      $  (0.1)      $    (13.0)
                                                ==========       ========       ==========       =======       ==========

</TABLE>



                                        8
<PAGE>



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

NOTE F.  SEGMENTS (CONTINUED)


<TABLE>

                                             SIX MONTHS ENDED JUNE 30, 2000
                                                        (UNAUDITED)

                                                  FIXED                           TOTAL
                                                SATELLITE          DATA         REPORTABLE
                                                SERVICES         SERVICES        SEGMENTS     ELIMINATIONS    CONSOLIDATED
                                                ----------       --------       ----------    ------------    ------------

<S>                                             <C>              <C>              <C>           <C>             <C>


Revenue from external customers .......         $  35.7          $  48.4          $  84.1       $  (0.8)        $  83.3
Intersegment revenue...................            10.2              --              10.2         (10.2)            --
                                                -------          --------         -------        ------         -------
Gross revenue..........................         $  45.9          $  48.4          $  94.3       $ (11.0)        $  83.3
                                                =======          =======          =======       =======         =======
EBITDA(1)..............................         $  30.9          $  (8.9)         $  22.0       $  (0.8)        $  21.2
Depreciation and amortization .........            44.9              8.9             53.8          --              53.8
                                                -------          -------          -------       --------        -------
Loss from operations...................         $ (14.0)         $ (17.8)         $ (31.8)      $  (0.8)        $ (32.6)
                                                =======          =======          =======       =======         =======

</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.

NOTE G. COMMITMENTS AND CONTINGENCIES

In November 1995, a component on Telstar 11 (formerly Orion 1) 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, the Company would be entitled to a pro rata portion of the
insurance coverage of approximately $195 million for the satellite. In light of
the insurance coverage and the available capacity on other Company satellites,
the Company believes that this loss of capacity will not have a material adverse
effect on the consolidated financial position or results of operations of the
Company.

Telstar 12 (formerly Orion 2) was launched 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.



                                       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 (CONTINUED)

The Company's Telstar 10/Apstar IIR satellite has experienced minor losses of
power from its solar arrays. Space Systems/Loral, Inc. ("SS/L") is currently
investigating the cause of these failures. Although to date Telstar 10/Apstar
IIR has not experienced any degradation in performance, there can be no
assurance that it will not experience additional power loss that could result in
performance degradation, including loss of transponder capacity. In the event of
additional power loss, the extent of the performance degradation, if any, will
depend on numerous factors, including the amount of the additional power loss,
when in the life of Telstar 10/Apstar IIR the loss occurred and the number and
type of use being made of transponders then in service. A complete or partial
loss of Telstar 10/Apstar IIR (which is fully insured) would result in a loss of
revenues and profits to the Company. Based upon information currently available,
the Company believes that this matter will not have a material adverse effect on
the consolidated financial position or results of operations to the Company.

Loral CyberStar anticipates it will have additional requirements over the next
three years to fund the growth in the business, the purchase of VSATs and other
capital expenditures, senior note interest payments, the replacement of Telstar
11 which is expected to reach its end of life in 2005, 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 10/Apstar IIR, Telstar 11 and Telstar 12 as collateral for
indebtedness. 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.

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.

NOTE H.  ACCOUNTING PRONOUNCEMENTS

Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for
Derivative Instruments and Hedging Activities ("SFAS 133"), requires that all
derivative instruments be recorded on 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 key criterion for hedge accounting is that the derivative must
be highly effective in achieving offsetting changes in fair value or cash flows
of the hedged items during the term of the hedge. The Company adopted SFAS No.
133, as amended, on January 1, 2001. The adoption of this standard did not have
an effect on the Company's financial position, results of operations or cash
flows, as the Company had no stand-alone or embedded derivatives at December 31,
2000 and had not historically entered into any derivative transactions to hedge
currency or other exposures.

As a matter of policy, the Company does not currently enter into transactions
involving derivative financial instruments. In the event the Company does enter
into such transactions in the future, such items will be accounted for in
accordance with SFAS No. 133, in which case the Company will formally document
all relationships between hedging instruments and hedged items, as well as its
risk-management objective and strategy for undertaking such hedge transactions.


                                       10

<PAGE>



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


NOTE H.  ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In September 2000, the FASB issued SFAS No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities. SFAS No. 140
replaces SFAS No. 125, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities. It revises the standards for
accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures, but it carriers over most of SFAS
No. 125's provisions without reconsideration. The Company has adopted the
applicable disclosure requirements of SFAS No. 140 in its consolidated financial
statements. The Company has determined that there was no impact relating to the
adoption of the other provisions of SFAS No. 140.

In June 2001, the FASB issued SFAS No. 141, Business Combinations and SFAS No.
142, Goodwill and Other Intangible Assets. SFAS No. 141 requires that all
business combinations initiated after June 30, 2001, be accounted for under the
purchase method and addresses the initial recognition and measurement of
goodwill and other intangible assets acquired in a business combination. SFAS
No. 142 addresses the initial recognition and measurement of intangible assets
acquired outside of a business combination and the accounting for goodwill and
other intangible assets subsequent to their acquisition. SFAS No. 142 provides
that intangible assets with finite useful lives be amortized and that goodwill
and intangible assets with indefinite lives not be amortized but will rather be
tested at least annually for impairment. The Company will adopt SFAS No. 142 on
January 1, 2002. Upon adoption of SFAS 142, the Company will stop the
amortization of goodwill with an expected net carrying value of approximately
$562 million at the date of adoption and annual amortization of approximately
$16 million that resulted from business combinations completed prior to the
adoption of SFAS 141. The Company will evaluate goodwill under the new
transitional impairment test in SFAS 142 and accordingly, has not yet determined
whether or not there will be an impairment loss. Any transitional impairment
loss will be recognized as a change in accounting principle.



                                       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 Space & Communications Ltd. ("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. The Company undertakes no obligation
to update any forward looking statements. 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 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 (see Note F to the
unaudited condensed consolidated financial statements):

     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,
     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, manages the Company's Fixed Satellite Services ("FSS") segment.

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

COMMITMENTS AND CONTINGENCIES

In November 1995, a component on Telstar 11 (formerly Orion 1) 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, the Company would be entitled to a pro rata portion of the
insurance coverage of approximately $195 million for the satellite. In light of
the insurance coverage and the available capacity on other Company satellites,
the Company believes that this loss of capacity will not have a material adverse
effect on the consolidated financial position or results of operations of the
Company.


                                       12

<PAGE>


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

Telstar 12 (formerly Orion 2) was launched 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.

The Company's Telstar 10/Apstar IIR satellite has experienced minor losses of
power from its solar arrays. Space Systems/Loral, Inc. ("SS/L") is currently
investigating the cause of these failures. Although to date Telstar 10/Apstar
IIR has not experienced any degradation in performance, there can be no
assurance that it will not experience additional power loss that could result in
performance degradation, including loss of transponder capacity. In the event of
additional power loss, the extent of the performance degradation, if any, will
depend on numerous factors, including the amount of the additional power loss,
when in the life of Telstar 10/Apstar IIR the loss occurred and the number and
type of use being made of transponders then in service. A complete or partial
loss of Telstar 10/Apstar IIR (which is fully insured) would result in a loss of
revenues and profits to the Company. Based upon information currently available,
the Company believes that this matter will not have a material adverse effect on
the consolidated financial position or results of operations to the Company.

Loral CyberStar anticipates it will have additional requirements over the next
three years to fund the growth in the business, the purchase of VSATs and other
capital expenditures, senior note interest payments, the replacement of Telstar
11 which is expected to reach its end of life in 2005, 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 10/Apstar IIR, Telstar 11 and Telstar 12 as collateral for
indebtedness. 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.

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.

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 F to the unaudited condensed consolidated
financial statements for additional information on segment results.)


                                       13

<PAGE>


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

REVENUES (IN MILLIONS):

<TABLE>


                                               THREE MONTHS ENDED         SIX MONTHS ENDED
                                                     JUNE 30,                  JUNE 30,
                                               -------------------     -----------------------

                                                 2001        2000        2001           2000
                                               -------     -------     -------        --------
       <S>                                     <C>         <C>         <C>            <C>
       Fixed Satellite Services.........       $  33.1     $  23.9     $  65.9        $   45.9
       Data Services....................          21.7        23.6        45.6            48.4
       Eliminations ....................          (5.6)       (6.4)      (12.0)          (11.0)
                                               -------     -------     -------        --------
       Revenues ........................       $  49.2     $  41.1     $  99.5        $   83.3
                                               =======     =======     =======        ========

    EBITDA(1) (IN MILLIONS):


                                               THREE MONTHS ENDED         SIX MONTHS ENDED
                                                     JUNE 30,                  JUNE 30,
                                               -------------------     -----------------------

                                                 2001        2000        2001           2000
                                               -------     -------     -------        --------

       Fixed Satellite Services.........       $  27.6     $  16.0     $  54.0        $   30.9
       Data Services....................          (5.2)       (6.0)      (11.9)           (8.9)
       Eliminations ....................          (0.1)       (0.8)       (0.1)           (0.8)
                                               -------     -------     -------        --------
       EBITDA(1)........................       $  22.3     $   9.2     $  42.0        $   21.2
                                               =======     =======     =======        ========

</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.

Revenues for the three months ended June 30, 2001 and 2000 were $49.2 million
and $41.1 million, respectively. Revenues for the six months ended June 30, 2001
and 2000 were $99.5 million and $83.3 million, respectively. These increases are
primarily related to the increased number of transponders leased in 2001 as
compared to 2000, which primarily resulted from the increased utilization of the
Company's Telstar 12 satellite, which was placed into service in January 2000
and the Company's Telstar 10/Apstar IIR satellite, which was purchased in
September 1999.

Direct expenses for the three months ended June 30, 2001 and 2000 were $15.1
million and $16.5 million, respectively. Direct expenses for the six months
ended June 30, 2001 and 2000 were $30.9 million and $33.3 million, respectively.
These decreases were primarily attributable to cost savings realized from
streamlining operations.

Sales and marketing expenses were $5.4 million and $7.0 million for the three
months ended June 30, 2001 and 2000, respectively. Sales and marketing expenses
for the six months ended June 30, 2001 and 2000 were $11.6 million and $12.9
million, respectively. These decreases were primarily attributable to cost
savings realized from streamlining operations.




                                       14

<PAGE>


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

Engineering and technical services expenses were $2.4 million and $2.7 million
for the three months ended June 30, 2001 and 2000, respectively. Engineering and
technical expenses for the six months ended June 30, 2001 and 2000 were $6.4
million and $5.1 million, respectively. The increase for the six months ended
June 30, 2001 was primarily due to $0.5 million of charges recorded in 2001
associated with closing the Company's German operation, including involuntary
terminations and other exit costs (of which $.1 million remains unpaid as of
June 30, 2001), and increased salaries supporting data services operations.

General and administrative expenses were $4.2 million and $5.9 million for the
three months ended June 30, 2001 and 2000, respectively. General and
administrative expenses for the six months ended June 30, 2001 and 2000 were
$8.6 million and $10.8 million, respectively. These decreases were primarily
attributable to cost savings realized from streamlining operations.

Depreciation and amortization were $27.7 million and $26.9 million for the three
months ended June 30, 2001 and 2000, respectively. Depreciation and amortization
expense for the six months ended June 30, 2001 and 2000 were $55.0 million and
$53.8 million, respectively. In 2002, amortization expense is expected to
decrease by approximately $3.9 million per quarter, as a result of the Company's
adoption of SFAS No. 142 (see Accounting Pronouncements).

Interest income was $0.4 million and $0.6 million for the three months ended
June 30, 2001 and 2000, respectively. Interest income for the six months ended
June 30, 2001 and 2000 was $0.6 million and $3.0 million, respectively. The
decrease for the six months ended June 30, 2001, is due to a reduction in the
balances held in the Company's restricted and segregated funds, which was used
for satellite acquisition and for interest payments on the Company's senior
notes.

Interest expense was $24.8 million and $24.1 million for the three months ended
June 30, 2001 and 2000, respectively. Interest expense for the six months ended
June 30, 2001 and 2000 was $50.1 million and $47.8 million, respectively. These
increases are primarily due to the amortization of the discount on the Senior
Discount Notes.

The Company recorded an income tax benefit of $0.5 million and $2.9 million on a
loss before income taxes of $30 million and $41 million for three months ended
June 30, 2001 and 2000, respectively, and an income tax benefit of $0.7 million
and $1.9 million on a loss before income taxes of $62 million and $77 million
for the six months ended June 30, 2001, and 2000, respectively. When comparing
2001 to 2000, the reduction in the current year benefit is primarily
attributable to a lower amount received from Loral Space & Communications
Corporation under the tax sharing agreement.

As a result of the above, the Company incurred net losses of $29.3 million and
$38.1 million for the three months ended June 30, 2001 and 2000, respectively.
Net losses for the six months ended June 30, 2001 and 2000 were $61.6 million
and $75.2 million, respectively.

RESULTS BY OPERATING SEGMENT

Fixed Satellite Service

FSS revenues for the three months ended June 30, 2001 were $33.1 million as
compared to $23.9 million for the three months ended June 30, 2000. Revenues for
the six months ended June 30, 2001 were $65.9 million as compared to $45.9
million for the six months ended June 30, 2000. EBITDA for the three months
ended June 30, 2001 was $27.6 million, or 83 percent of revenues, as compared to
$16.0 million, or 67 percent of revenues, for the three months ended June 30,
2000. EBITDA for the six months ended June 30, 2001 was $54.0 million, or 82
percent of revenues, as compared to $30.9 million, or 67 percent of revenues,
for the six months ended June 30, 2000. These increases are due to the increased
number of transponders leased in 2001 as compared to 2000 and the intercompany
leasing revenues from data services for capacity. At June 30, 2001, FSS had
contracted backlog of approximately $735.0 million, as compared to $739.4
million at December 31, 2000.



                                       15

<PAGE>


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

Data Services

Data services revenues for the three months ended June 30, 2001 were $21.7
million as compared to $23.6 million for the three months ended June 30, 2000.
Revenues for the six months ended June 30, 2001 were $45.6 million as compared
to $48.4 million for the six months ended June 30, 2000. Revenues decreased in
part due to the slowdown of worldwide demand for telecommunications and Internet
services. EBITDA for the three months ended June 30, 2001 was a loss of $5.2
million as compared to a loss of $6.0 million for the three months ended June
30, 2000. This decrease primarily resulted from cost savings realized from
streamlining operations. EBITDA for the six months ended June 30, 2001 was a
loss of $11.9 million as compared to a loss of $8.9 million for the six months
ended June 30, 2000. The increase in EBITDA loss for the six months ended June
30, 2001, is primarily due to lower revenues, offset in part by cost savings
realized from streamlining operations. At June 30, 2001, data services had
contracted backlog of approximately $150.1 million, as compared to $190.8
million at December 31, 2000. The decrease in backlog resulted from de-bookings,
due to the continued softness in the Internet business globally.

ACCOUNTING PRONOUNCEMENTS

Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for
Derivative Instruments and Hedging Activities ("SFAS 133"), requires that all
derivative instruments be recorded on 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 key criterion for hedge accounting is that the derivative must
be highly effective in achieving offsetting changes in fair value or cash flows,
of the hedged items during the term of the hedge. The Company adopted SFAS No.
133, as amended, on January 1, 2001. The adoption of this standard did not have
an effect on the Company's financial position, results of operations or cash
flows, as the Company had no stand-alone or embedded derivatives at December 31,
2000 and had not historically any derivative transactions to hedge currency or
other exposures.

In September 2000, the FASB issued SFAS No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities. SFAS No. 140
replaces SFAS No. 125, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities. It revises the standards for
accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures, but it carriers over most of SFAS
No. 125's provisions without reconsideration. The Company has adopted the
applicable disclosure requirements of SFAS No. 140 in its consolidated financial
statements. The Company has determined that there was no impact relating to the
adoption of the other provisions of SFAS No. 140.

In June 2001, the FASB issued SFAS No. 141, Business Combinations and SFAS No.
142, Goodwill and Other Intangible Assets. SFAS No. 141 requires that all
business combinations initiated after June 30, 2001, be accounted for under the
purchase method and addresses the initial recognition and measurement of
goodwill and other intangible assets acquired in a business combination. SFAS
No. 142 addresses the initial recognition and measurement of intangible assets
acquired outside of a business combination and the accounting for goodwill and
other intangible assets subsequent to their acquisition. SFAS No. 142 provides
that intangible assets with finite useful lives be amortized and that goodwill
and intangible assets with indefinite lives not be amortized but will rather be
tested at least annually for impairment. The Company will adopt SFAS No. 142 on
January 1, 2002. Upon adoption of SFAS 142, the Company will stop the
amortization of goodwill with an expected carrying value of approximately $562
million at the date of adoption and annual amortization of approximately $16
million that resulted from business combinations completed prior to the adoption
of SFAS 141. The Company will evaluate goodwill under the new transitional
impairment test in SFAS 142 and accordingly, has not yet determined whether or
not there will be an impairment loss. Any transitional impairment loss will be
recognized as a change in accounting principle.



                                       16

<PAGE>


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

Part II. OTHER INFORMATION

ITEM 6.  REPORTS ON FORM 8-K

         (a)  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

<TABLE>

<S>                        <C>
Date:  August 8, 2001                      /S/   RICHARD J. TOWNSEND
                           ----------------------------------------------------------------
                                                 Richard J. Townsend
                                 Senior Vice President and Chief Financial Officer
                           (Principal Financial Officer and Registrant's Authorized Officer)

</TABLE>


                                       17