Solar Array Malfunction on Fully Insured Satellite Will Not Adversely Affect
Projected Revenues for 2001

PanAmSat Corporation (NASDAQ: SPOT)
today announced that services for all customers on the company’s PAS-7
Indian Ocean Region satellite have been unaffected by a technical difficulty
with one of the spacecraft’s solar arrays. PAS-7 recently experienced a
reduction of approximately 25 percent of its power capacity as a result of
the condition; however, the company emphasized that it expects the satellite
to continue to serve existing customers.

“We are committed to taking care of our customers on PAS-7. Fortunately,
even with the power degradation on PAS-7, the satellite has more than enough
power capacity remaining to serve all customers with a safe margin to spare
for their services,” said Robert Bednarek, PanAmSat’s executive vice
president and chief technology officer. “We will continue to monitor the
satellite closely to ensure it maintains the high performance standards that
our PAS-7 customers have been receiving, and we fully expect the satellite
to continue to meet our customers needs for the foreseeable future.”

Bednarek said the company is working with the satellite manufacturer to
determine the long-term implications on the satellite. PAS-7, an FS 1300
model satellite built by Space Systems/Loral, was launched in September 1998
and carries 14 C-band transponders and 30 Ku-band transponders. It provides
video, direct-to-home and telecommunications services throughout Europe, the
Middle East, Africa and Asia from 68.5 degrees east longitude. PanAmSat also
operates the PAS-10 Indian Ocean Region satellite at the same orbital
location and the PAS-4 spacecraft that is available for additional backup
capacity in the region.

PanAmSat maintains a policy of insurance on this satellite in the
approximate amount of $250 million. The company has made the preliminary
determination that this event will constitute a Total Constructive Loss
under the policy, which occurs for insurance purposes when 20 percent or
more of the capacity on the satellite is lost. The company does not expect a
material impact on projected 2001 revenues as a result of PAS-7’s condition,
and will provide financial guidance for 2002 on October 16 when it issues
its third quarter results.

NOTE: The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for certain forward-looking statements so long as such information
is identified as forward-looking and is accompanied by meaningful cautionary
statements identifying important factors that could cause actual results to
differ materially from those projected in the information. When used in this
press release, the words “estimate,” “plan,” “project,” “anticipate,”
“expect,” “intend,” “outlook,” “believe,” and other similar expressions are
intended to identify forward-looking statements and information. Actual
results may differ materially from anticipated results as a result of
certain risks and uncertainties, which are more specifically set forth in
the company’s annual report on Form 10-K for the year ended December 31,
1999 on file with the Securities and Exchange Commission. These risks and
uncertainties include but are not limited to (i) risks associated with
technology (including without limitation, delayed launches, launch failures
and in-orbit failures), (ii) regulatory risks, including the ability to
obtain export licenses, (iii) risks of uninsured loss, (iv) risks associated
with the Company’s new Internet initiatives, and (v) litigation. PanAmSat
cautions that the foregoing list of important factors is not exclusive.
Further, PanAmSat operates in an industry sector where securities values may
be volatile and may be influenced by economic and other factors beyond the
Company’s control.