Intelsat, the first global commercial communications satellite provider,
today announced that it has completed its historic transformation from a
treaty-based organization to a privately held company. The new company,
Intelsat, Ltd., was created with over 200 shareholders comprised of
companies from more than 145 countries, representing most of the world’s
preeminent communications network operators.

“For nearly 40 years, Intelsat has provided the most extensive and reliable
satellite connections on the planet,” said Conny Kullman, CEO of Intelsat,
Ltd. “As a private company, we will now build on this success, offering new
levels of flexibility and customer service.”

Formed in 1964 to provide global communications, Intelsat resulted from the
Communications Satellite Act signed by U.S. President Kennedy in 1962.
Today, Intelsat provides Internet, broadcast, telephony and corporate
network solutions to customers in more than 200 countries and territories
through its network of 20 geostationary satellites.

The decision to privatize was formally made by Intelsat’s member nations in
November 2000 to enhance the company’s flexibility and competitiveness in an
increasingly dynamic market, and to address customer demands for Internet
and broadband services.

In 2000, Intelsat had revenues of $1.1 billion, a net income of $504
million, and an 86 percent EBITDA margin. Intelsat’s 99.995 percent system
reliability serves a blue-chip customer base that includes the world’s
leading international telecom carriers, Internet service providers and

“Privatization allows us much greater flexibility, and we are continuing to
deploy more sales and support functions around the world so we can be more
responsive to our customers,” Kullman continued. “In addition, we are
positioning ourselves to offer our customers the solutions they need to
succeed in their own markets – including bundled network solutions, Internet
protocol gateway services and broadband.”

Intelsat’s global sales and marketing force is located in Australia, Brazil,
China (Hong Kong), Germany, India, Norway, Singapore, South Africa, the U.K
and the U.S.

In June, Intelsat launched the first of ten satellites planned over the next
two years, marking the beginning of the most aggressive satellite launch
campaign in its history. The first seven of these spacecraft, the Intelsat
IX generation, is providing two to three times the power of the satellites
being replaced, offering customers better quality and the ability to
implement more cost-effective ground facilities. The Intelsat 902 satellite
is scheduled to be launched in late August and will serve customers in
Europe, the Middle East, Africa and Asia. This $3 billion launch campaign is
expected to expand the Intelsat fleet to 24 spacecraft by 2003, and increase
current capacity by more than forty percent.

“Intelsat will continue to inspire connections,” Kullman added. “In 1969, we
brought the first images of man’s walk on the moon to the world. When man
walks on Mars, we plan to provide streaming video of those first steps.”

About Intelsat

Intelsat is an international communications company offering Internet,
broadcast, telephony and corporate network solutions around the globe
through its fleet of 20 satellites. For nearly four decades, many of the
world’s leading telecommunications companies, multinational corporations and
broadcasters in more than 200 countries and territories have relied on
Intelsat satellites and staff for quality connections, global reach and

For further information, please contact us at
or at +1 202-944-7500.

Some of the statements in this news release may constitute “forward-looking
statements” that do not directly or exclusively relate to historical facts.
These forward-looking statements reflect our intentions, plans,
expectations, assumptions and beliefs about future events and are subject to
risks, uncertainties and other factors, many of which are outside our
control. Important factors that could cause actual results to differ
materially from the expectations expressed or implied in the forward-looking
statements include known and unknown risks. Because actual results could
differ materially from our intentions, plans, expectations, assumptions and
beliefs about the future, you are urged to view all forward-looking
statements contained in these news releases with caution. Intelsat does not
undertake any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.