Intelsat Approves Spin-off

The Intelsat Meeting of Signatories
has unanimously endorsed recommendations forwarded to it by the 122nd Board of Governors to create a spin-off company, totally separate from Intelsat and temporarily known as INC.

Three Intelsat decision-making bodies are involved in this process, and now two have already endorsed INC’s creation.
Today’s unanimous decision by the Meeting of Signatories will be forwarded with a recommendation for approval to the 22nd
Assembly of Parties meeting here March 30 through April 1.

“Today’s decision represents an important milestone in the creation of INC. Approval by the Assembly next week will mean
we will have successfully created a new entrant in the satellite communications marketplace, and done so with competitive
safeguards, allowing all companies to compete on a level playing field,” said Irving Goldstein, Director General and CEO, in
announcing today’s unanimous decision.

Intelsat owns and operates a global communications satellite system. With 1997 revenues of more than US$960 million,
the Intelsat system provides voice/data and video services to over 200 countries and territories via satellite.