New Skies Satellites N.V., is an independent company which was created by IntelSat following a decision by all of IntelSat's 143 member-countries at a meeting of the Assembly of Parties on 31 March 1998. New Skies is established as a limited liability company with headquarters in The Hague, The Netherlands, and is now in a position to begin operations.

IntelSat has transferred to New Skies the following satellites and associated orbital registrations:

Satellite Location

• IntelSat 513 - 183 E
• IntelSat 703 - 57 E
• IntelSat 803 - 338.5 E
• IntelSat 806 - 319.5 E
• IntelSat    K - 338.5 E
• K-TV     - 95 E

Mr. Kullman, noting that this was a truly historic achievement for IntelSat, expressed the hope that New Skies succeeds in its endeavor to thrive as a new global competitor. He also stated that "the creation of New Skies proves that IntelSat is willing and able to restructure itself to keep pace with the changing demands of the marketplace. While we wish New Skies the best of luck as it goes its own way, the job of IntelSat Management now turns to the second phase of the restructuring effort which will involve the full commercialization and privatization of IntelSat."

IntelSat owns and operates a global communications satellite system. With projected 1998 revenues of approximately $1 billion, the IntelSat system provides voice/data, video and Internet services to over 200 countries and territories via satellite.