Intelsat Reports Record Full Year 2009 Revenue, Growing 6 Percent over Full Year 2008

March 9, 2010

Intelsat S.A., reported results for the three months and year ended December 31, 2009.

Intelsat S.A. reported revenue of $620.8 million and a net loss of $97.0 million for the three months ended December 31, 2009. The company also reported Intelsat S.A. EBITDAii, or earnings before net interest, gain on early extinguishment of debt, taxes and depreciation and amortization, of $454.0 million, and Intelsat

Luxembourg Adjusted EBITDAii of $488.9 million, or 79 percent of revenue, for the three months ended December 31, 2009.

Intelsat S.A. also reported revenue of $2.5 billion and a net loss of $781.7 million for the year ended December 31, 2009. The net loss includes non-cash charges of $499.1 million incurred in the first quarter of 2009 for orbital location impairments.

The company also reported Intelsat S.A. EBITDA of $1.4 billion and Intelsat Luxembourg Adjusted EBITDA of $2.0 billion, or 79 percent of revenue, for the year ended December 31, 2009.

“2009 was a record revenue year for Intelsat, reflecting the continued strength of the fixed satellite services sector. Our growth was fueled by the diverse capabilities of our global network, which provides critical infrastructure for network services, media and government customers," said Intelsat CEO, David McGlade. "In 2009 we signed a number of significant customer agreements that reflect our strategic goals of expanding direct-to-home neighborhoods for regional service providers, being the commercial satellite services supplier of choice for military operations and providing bandwidth for telecom and data service providers. These agreements increased our revenue backlog from $8.8 billion at year end 2008 to $9.4 billion at year end 2009."

"The year was also an important period in Intelsat's longer-term strategy to refresh and upgrade fleet capacity in targeted regions,” McGlade continued. “We have successfully launched three satellites since November 23, 2009 that will provide growth capacity for our customers, while enabling us to move replaced satellites to

other locations in our network. Combined with other strategic moves, such as our recent acquisition of the ProtoStar 1 satellite, which is expected to enter service as Intelsat 25 in the second quarter of 2010, we continue to enhance what we believe is the world's premier satellite fleet for the benefit of our global customer base."

Business Highlights

• Intelsat’s revenue grew 6 percent to $2.5 billion, and Intelsat Luxembourg Adjusted EBITDA grew 7 percent to $2.0 billion, in 2009 as compared to 2008i, reflecting the benefits of Intelsat's diversified customer sets and underscoring the stability of the FSS sector. Growth was driven by the continued strength of Intelsat's network services business, which grew 7 percent to $1.2 billion, and the outstanding performance of the government business, which grew 21 percent to $424.4 million. Growth in these two customer sets was due primarily to strong demand for communications infrastructure in emerging regions, growth in mobile communications and demand for global solutions. The performance of the media business, which declined 4 percent to $778.7 million for the full year 2009, was attributed primarily to difficulties faced by our U.S. media

customers in a slow economy. Revenue in 2009 also included $44.1 million from launch vehicle resales conducted by our satellite-related services business.

• Intelsat’s network services business continued to grow due to demand for capacity supporting data networking. Oil and gas industry solutions provider, Schlumberger Global Connectivity Services, renewed and extended services on multiple satellites. Networking infrastructure provider, Gateway Communications Africa (UK) Ltd., contracted for multiple services under a long term agreement for capacity on Intelsat New Dawn.

• Intelsat expanded and renewed relationships with media customers. Turner Broadcasting System, Inc., currently a customer on eight of Intelsat’s satellites, procured new capacity on the Horizons-2 satellite for expanded contribution capabilities in North America. Latin American media services provider, Telepuerto Internacional Buenos Aires Satellite Capacity S.A., contracted for new long term service on Intelsat 11.

• On January 26, 2010, the United States Navy awarded Intelsat General Corporation (“IGC”), a subsidiary of Intelsat S.A., a contract under the Commercial Broadband Satellite Program. Under the program, IGC will be the prime contractor for all of the U.S. Navy’s global satellite capacity requirements in the C-, Ku- and X-bands. The contract award, an indefinite delivery, indefinite quantity (“IDIQ”) program with a total potential value of $543 million, is currently delayed pending the outcome of a formal protest filed by other bidders.

• Intelsat's satellite development and launch programs continue to progress. The Intelsat 14 and Intelsat 15 satellites, which encountered launch delays in the third and fourth quarter of 2009, were successfully launched on November 23 and 30, 2009, respectively. The launch delays, which resulted in postponed availability of new capacity, are expected to slow growth in the first half of 2010. On February 12, 2010, the Intelsat 16 satellite was successfully launched, as planned. Intelsat currently has eight satellites in development, one of which, Intelsat New Dawn, is currently expected to launch in late 2010. In addition to these announced programs, Intelsat expects to procure two additional replacement satellites. With the exception of one, all of these satellites are expected to be launched by the end of 2012. Meanwhile, the recently purchased Intelsat 25 satellite is expected to complete its drift and test period, entering service at 328.5° east longitude in early second quarter 2010.

• Intelsat’s average fill rate on its approximately 2,025 station-kept transponders was 83 percent at

December 31, 2009.

• On October 20, 2009, our indirect subsidiary, Intelsat Jackson Holdings S.A. (“Intelsat Jackson”), completed an offering of $500.0 million aggregate principal amount at maturity of 81/2% Senior Notes due 2019, which yielded $487.1 million of cash proceeds at issuance (“the 2009 Jackson Notes Offering”). Upon consummation of the 2009 Jackson Notes Offering, Intelsat Jackson paid a dividend to Intelsat (Luxembourg) S.A. (“Intelsat Luxembourg”) in an amount equal to the purchase price paid by Intelsat Luxembourg to purchase $400.0 million face amount of the Intelsat (Luxembourg) S.A. 11 ½% / 12 ½%Senior PIK Election Notes due 2017 (“the 2017 PIK Notes”) at a discount. Intelsat Luxembourg then canceled the purchased 2017 PIK Notes. After giving effect to the purchase of the 2017 PIK Notes and fees and expenses related thereto and the 2009 Jackson Notes Offering, $101.1 million of the proceeds from the 2009 Jackson Notes Offering remained available for general purposes.

• On December 15, 2009, Intelsat completed the migration of the jurisdiction of organization of Intelsat, Ltd. and certain of its parent holding companies and subsidiaries from Bermuda to Luxembourg. The company’s headquarters are now in Luxembourg. The migration domiciles Intelsat in a stable jurisdiction that is familiar with the fixed satellite services sector and has established tax treaties with the countries in which Intelsat does business.

Financial Results for the Three Months Ended December 31, 2009

Revenue for the three months ended December 31, 2009 increased by $12.0 million, or 2 percent, to $620.8

million as compared to $608.8 million for the three months ended December 31, 2008. Strong renewals,

expansion of existing contracts, new business and improved contract terms contributed to the overall favorable trend. By service type, revenue increased or decreased due to the following:

• Transponder services— an aggregate increase of $16.0 million, due primarily to a $14.5 million increase

in revenue from government customers, resulting from new business and strong renewals, a portion of which was related to capacity resold from third parties. Additionally, a $6.5 million increase in revenues from network services customers, resulting from new business, service expansions and strong renewals, primarily in the Latin America and Caribbean, the Europe and the Africa and Middle East regions, was partially offset by a $5.0 million decline in revenues from media customers, primarily in the Latin America and Caribbean region.

• Managed services— an aggregate decrease of $3.2 million, primarily from reduced occasional use video

services due to fewer events in the fourth quarter of 2009 as compared to the same period in 2008.

• Mobile Satellite Services and Other— an aggregate increase of $2.0 million, primarily due to increased

revenue from sales of customer premises equipment primarily for government customers.

• Channel— a decrease of $2.7 million related to continued declines from the migration of point-to-point

satellite traffic to fiber optic cables across transoceanic routes and the optimization of customer

networks, a trend expected to continue.

Changes in direct costs of revenue, selling, general and administrative expenses, depreciation and amortization and interest expense, net are described below.

• Direct costs of revenue decreased by $3.5 million, or 3 percent, to $104.2 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008.

The decrease was primarily due to the following:

• a decrease in launch vehicle resale costs from the recognition of $14.4 million in expense in fourth quarter of 2008 to no similar costs incurred in the fourth quarter of 2009; partially offset by

• a $9.0 million increase in cost of sales, primarily from increases in equipment and third-party

capacity purchases in the fourth quarter of 2009.

• Selling, general and administrative expenses increased by $36.0 million, or 71 percent, to $87.0 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008. This was largely due to an increase of $37.7 million in staff expenses primarily resulting from increases in equity compensation costs recorded in the fourth quarter of 2009.

• Depreciation and amortization expense decreased by $24.2 million, or 11 percent, to $193.0 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008. The decrease was primarily due to the following:

• a net decrease of $21.6 million in depreciation expense due to certain satellites, ground and other assets becoming fully depreciated; and

• a decrease of $6.3 million in amortization expense due to changes in the expected pattern of consumption of amortizable intangible assets; partially offset by

• an increase of $3.7 million in depreciation expense resulting from the impact of satellites placed into service during the last quarter of 2008 and the fourth quarter of 2009.

• Income from operations increased by $511.0 million to $228.7 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008. The following material pre-tax charges affected the year-over-year comparisons:

• a $326.8 million non-cash impairment charge taken in the fourth quarter of 2008 for which there was no similar charge in the fourth quarter of 2009; and

• a $178.6 million increase in income from operations as a result of a decrease in the losses recognized on our derivative financial instruments from a loss of $186.6 million in the fourth quarter of 2008 to a loss of $8.0 million in the fourth quarter of 2009. The value of undesignated interest rate swaps decreased due to cash settlements for interest, representing the difference between the amount of floating rate interest received and the amount of fixed rate interest paid, offset by an increase in fair value as a result of marking-to-market.

• Interest expense, net consists of the gross interest expense incurred less the amount of interest capitalized related to capital assets under construction and less interest income earned. The company also held interest rate swaps with an aggregate notional amount of $3.3 billion to economically hedge the variability in cash flow on a portion of the floating-rate term loans under our senior secured and unsecured credit facilities. Interest expense, net decreased by $30.8 million, or 8 percent, to $335.0 million for the three months ended December 31, 2009, as compared to $365.8 million for the three months ended December 31, 2008. The decrease in interest expense was principally due to the following:

• a decrease of $36.5 million due to lower interest rates on our variable rate debt in the fourth quarter of 2009 as compared to the fourth quarter of 2008; and

• an increase of $11.1 million in capitalized interest expense; offset by

• a net increase of approximately $12.9 million due to a higher principal amount outstanding of the 2017 PIK Notes, partially offset by a decrease in interest resulting from the purchase of a portion of the 2017 PIK Notes with proceeds from a the 2009 Jackson Notes Offering; and

• an increase of $5.4 million in amortization of debt issuance costs.

The non-cash portion of total interest expense, net was $103.2 million for the three months ended December 31, 2009 and included $71.1 million of payment-in-kind interest expense. The remaining non-cash interest expense was primarily associated with the amortization of the deferred financing fees incurred as a result of new or refinanced debt and the amortization and accretion of discounts and premiums recorded to adjust our debt to fair value in connection with the acquisition of our company in February 2008.

• Gain on early extinguishment of debt was $19.7 million for the three months ended December 31, 2009. The increase of $19.1 million from $0.6 million in the three months ended December 31, 2008 was primarily related to the purchase of a portion of the 2017 PIK Notes in the fourth quarter of 2009 with the proceeds of the 2009 Jackson Notes Offering.

• Other income, net was $32.4 million for the three months ended December 31, 2009 as compared to $5.9 million other expense, net for the three months ended December 31, 2008. The increase of $38.4 million was primarily related to a $27.3 million gain from the sale of our equity ownership in WildBlue Communications, Inc. in the fourth quarter of 2009, together with an increase of $11.1 million in exchange rate gains in the fourth quarter of 2009, as compared to the fourth quarter of 2008.

EBITDA, Intelsat Luxembourg Adjusted EBITDA and Other Financial Metrics

Intelsat S.A. EBITDA of $454.0 million for the three months ended December 31, 2009 reflected an increase of $525.1 million, from a loss of $71.1 million for the same period in 2008. The 2008 loss reflects non-cash charges of $326.8 million incurred in the fourth quarter of 2008 for orbital location impairments.

Intelsat Luxembourg Adjusted EBITDA increased by $29.4 million, or 6 percent, to $488.9 million, or 79

percent of revenue, for the three months ended December 31, 2009 from $459.5 million, or 75 percent of

revenue, for the same period in 2008.

At December 31, and September 30, 2009, Intelsat’s backlog, representing expected future revenue under

contracts with customers and Intelsat’s pro rata share of backlog in its joint venture investments, was $9.4

billion and $9.5 billion, respectively.

7

Intelsat management has reviewed the data pertaining to the use of the Intelsat network and is providing

revenue information with respect to that use by customer set and service type in the following tables.

Intelsat management believes this provides a useful perspective on the changes in revenue and customer

trends over time.