PanAmSat Exercises Option to Buy Two More Small Geostationary Communications Satellites from Company

(Dulles, VA 28 November 2001) – Orbital Sciences Corporation (NYSE: ORB)
received another major industry endorsement for its smaller-sized
(GEO) STARTM satellite systems today when PanAmSat Corporation (NASDAQ:
exercised a contract option to purchase two additional company-built C-band
spacecraft. The two new satellites will be based on Orbital’s STAR-2
which offers the satellite industry’s highest performance and lowest
per-transponder acquisition costs of any small commercial GEO spacecraft in
production today. The two companies did not disclose the financial details
the option exercise, which follows PanAmSat’s original order with Orbital
one STAR-class satellite in March 2001. The first of the two new PanAmSat
satellites is slated for delivery in the fourth quarter of 2003, while the
second satellite is expected to have its delivery date determined in the

“We are exceptionally pleased that PanAmSat has given us the go-ahead to
two additional satellites for its in-orbit fleet,” said Mr. David W.
Orbital’s Chairman and Chief Executive Officer. “With this order, Orbital
continues to develop strong momentum throughout the satellite market as
established and emerging operators in the U.S. and abroad are recognizing
benefits of our smaller-sized GEO satellites. Our STAR products offer
lower acquisition and launch costs, the ability to cost-effectively add
incremental capacity and the flexibility to meet certain regulatory
requirements,” he added.

Over the past several years, Orbital has developed a strong niche position
the world market for GEO communications satellites. With its ramp-up in the
production of small, lighter-weight satellites, the company is on track to
replicate its decade-long success following the introduction of its
Pegasus and Taurus rockets to the world launch vehicle market in the early

“Now that there is an established and proven alternative to the larger, more
costly GEO satellites offered by our competitors, I think we are seeing a
and encouraging trend around the world of satellite operators re-examining
acquisition strategy, budget flexibility and overall capacity requirements.
With numerous new business proposals submitted or currently in the works, we
seeing more interest in our STAR satellites than ever before,” said Dr. Ali
Atia, President of Orbital’s GEO communications satellite business unit.

With PanAmSat’s exercise of its two option orders, Orbital has built and
delivered, or is now in the process of manufacturing, eight GEO
satellites, including IndoStar-1, B-SAT-2a,
-2b and -2c, N-STAR c (in conjunction with Lockheed Martin), PanAmSat’s
XII, and the two new spacecraft PanAmSat just ordered. Orbital is also one
the world’s leading suppliers of low-Earth orbit (LEO) satellites. The
has developed and produced, or is now under contract to deliver, over 90 LEO
spacecraft for commercial, scientific and defense applications.

Mr. Mesut Ciceker, Orbital’s Vice President of Business Development for GEO
satellites, said, “All of us at Orbital are grateful for the confidence that
PanAmSat has shown in our ability to deliver three highly reliable,
state-of-the-art satellites for their extensive worldwide communications
network. We hope that this initial order is just the beginning of a long
beneficial relationship between Orbital and PanAmSat, one of the world’s
‘blue-chip’ satellite operators.”

Orbital’s GEO satellites are based on the company’s STAR family of smaller
satellite platforms, which are able to accommodate most types of commercial
communications payloads. For many applications, the STAR design is an
attractive alternative to the larger, more costly GEO satellites offered by
industry’s traditional suppliers. The STAR satellites are smaller and are
significantly less expensive to manufacture and launch. They are a perfect
for customers in the early stages of building their business or established
companies that wish to add incremental capacity to their network.

About PanAmSat:

PanAmSat Corporation is the premier provider of global video and data
broadcasting services via satellite. Operating a global network of 21
spacecraft with more than 800 transponders and seven technical facilities on
ground, the company reaches 98 percent of the world’s populations with
entertainment and information delivered through cable television systems, TV
broadcast affiliates, direct-to-home TV operators, Internet service
and telecommunications companies. PanAmSat is 81 percent owned by HUGHES
Electronics Corporation. For more information on PanAmSat, visit the
web site at

About Orbital:

Orbital develops and manufactures affordable space systems, including
satellites, launch vehicles, electronics and advanced systems. Orbital is
involved with satellite-based networks that provide wireless data
and high-resolution Earth imagery to customers around the world. For more
information on Orbital, visit the company’s web site at