PanAmSat Corporation (NASDAQ: SPOT)
today announced a new multi-spacecraft agreement with Orbital Sciences
Corporation (NYSE: ORB) for the development of the next generation of Galaxy
cable satellites. Through this latest procurement plan, PanAmSat will ensure
seamless services for premier entertainment companies and Galaxy anchor
customers, such as ABC Cable Networks, ESPN, HBO and TBS, Inc. The plan also
provides expansion capacity in the North American market for the delivery of
additional PanAmSat video services.

“Orbital Sciences’ smaller geostationary satellites are an ideal match for
our specific requirements. This agreement will enable PanAmSat to fulfill
the long-term needs of our anchor tenants in the Galaxy cable neighborhood
as well as many other top-name programmers,” said R. Douglas Kahn, PanAmSat’
s president and chief executive officer. “The new satellites will also
provide PanAmSat with additional resources to continue building networks and
developing new services for the delivery of traditional media as well as
emerging applications.”

The procurement plan calls for Orbital Sciences to initially begin
construction on one new spacecraft, designed to operate at 74 degrees west
longitude. Following its launch in late 2002 or early 2003, the expansion
satellite will offer 24 C-band transponders for the delivery of full-time
video services.

The agreement also provides PanAmSat with the option for two additional
satellites to succeed the Galaxy V and Galaxy IR cable neighborhoods
following their scheduled retirements in 2005 and 2006, respectively. The
two satellites would each carry 24 C-band transponders to ensure seamless
services for the dozens of leading cable programmers that depend on PanAmSat
to deliver their content to all of the nearly 11,000 cable headends
throughout the United States.

“We are delighted to have been selected by PanAmSat, one of the world’s
marquee providers of satellite-based communications services,” said Mr.
David W. Thompson, Orbital’s chairman and chief executive officer. “We are
looking forward to a long, mutually beneficial relationship with PanAmSat.
In a larger sense, this contract also solidifies our place as one of the
world’s major suppliers of GEO satellites and validates our strategy,
carving out a solid niche in the market with an alternative to the larger,
more costly systems.”

The satellite procurements will support the recent long-term agreements
PanAmSat signed with ABC Cable Networks, ESPN, HBO and TBS, Inc., all of
whom will continue to serve as anchor tenants on the new spacecraft. As
called for in these agreements, PanAmSat will deliver the Disney Channel,
ESPN, SoapNet and Toon Disney, as well as HBO, Cinemax CNN, CNNfn, CNN
Headline News, CNN International, TNT, TBS Superstation, TCM, Cartoon
Network and Comedy Central West through 2015.

The Galaxy cable neighborhood, which includes Galaxy IR, Galaxy V, Galaxy
IX, Galaxy XR and Galaxy XI, delivers nine of the top 10 cable networks in
the country and nearly 100 channels in all.

About Orbital Sciences

Orbital is one of the world’s leading manufacturers of low-cost space
systems, including satellites, launch vehicles, space sensors and satellite
ground systems. Its Magellan subsidiary offers the industry’s broadest line
of GPS-enabled navigation and positioning products for consumer and
industrial markets. Through its relationships with ORBCOMM, ORBIMAGE and
ORBNAV, Orbital is also involved with satellite-based networks that provide
data communications, high-resolution imagery and automotive information
services to customers around the world.