AsiaSat Announces Annual Results

Asia Satellite Telecommunications Holdings Limited („AsiaSat‟ - SEHK: 1135), Asia‟s leading satellite operator, announces its 2009 annual results for the year to 31 December 2009.

Final Results for the Financial Year ended 31 December 2009

Chairman’s Statement

EMERGING OPPORTUNITIES IN AN IMPROVING MARKET

I am pleased to report that, in 2009, Asia Satellite Telecommunications Company Limited ("AsiaSat") achieved strong core performance and we are well positioned for growth in the coming years. While economic uncertainty persists in the region, there are encouraging signs that the Asian satellite industry will not be seriously affected. As a market leader offering premium services, we stand in good stead to benefit from improving market conditions and growing demand for new services such as High Definition Television (HDTV).

We are particularly pleased with the successful launch of AsiaSat 5, AsiaSat 2‟s replacement last August. AsiaSat 5 not only extends our services at 100.5°E but also expands our fleet‟s capacity and leads us into new markets. It embodies our commitment to maintaining AsiaSat‟s position as Asia's premier satellite operator, providing high quality service to our customers.

Our overall performance in 2009 was better than the strong performance of 2008, despite a challenging economic environment. We were able to secure a number of significant renewals and new contracts which produced a profit growth rate of 8%, despite the negative effects of a further decline in interest income and losses of a jointly controlled entity. We expect these positive trends to continue throughout 2010.

As announced in our Interim Report, our leading position in the Asian satellite industry was recognised during the year by industry organisations and our peers through a series of industry awards. In March 2009, AsiaSat was awarded "Best Asian Satellite Carrier" at the 2009 Telecom Asia Awards. Also in the same month, AsiaSat‟s Chief Executive Officer Peter Jackson was inducted into the Society of Satellite Professionals International‟s Hall of Fame, in recognition of his three decades of work and executive leadership in the telecommunications and satellite industry, half of which has been spent at AsiaSat. In June the same year, AsiaSat was recognised as "Satellite Service Provider of the Year in the Asia Pacific" at the Frost & Sullivan Asia Pacific ICT Awards, the first time a satellite operator has received this award twice.

Our core business is strong, the fundamentals of our industry remain robust, and as a market leader we are in an excellent position to thrive as a resurgent Asian economy creates new and exciting business opportunities.

FINANCIAL RESULTS

Turnover

Turnover for 2009 was HK$1,163 million (2008 : HK$1,032 million), an increase of HK$131 million, 13% over the previous year. This was driven primarily by growth in our core business amounting to approximately HK$76 million. Our wholly-owned subsidiary, SpeedCast Holdings Limited ("SpeedCast") also contributed to the growth in revenue of around HK$52 million in 2009 due to strong demand from its customers. 3

Profit

The profit attributable to equity holders during 2009 was HK$525 million (2008 : HK$485 million), an increase of 8%. The increase mainly resulted from our strong revenue performance and a reduction in depreciation expenses of HK$39 million as AsiaSat 2 was fully depreciated in early 2009. However, the profit growth was partially offset by a reduction in interest income of approximately HK$48 million owing to the continued decrease in bank interest rates on deposits.

Operating Expenses

Operating expenses, excluding depreciation and amortisation, in 2009 amounted to HK$324 million (2008 : HK$275 million). The increase was primarily due to an increase in legal and professional fees of HK$27 million for pursuing various new business opportunities and handling Indian tax matters and an increase in various expenses including satellite operation expenses of HK$9 million, China business tax of HK$10 million, staff costs of HK$17 million. Impairment charges on certain assets of a subsidiary of HK$6 million contributed the remaining increase in operating expenses. This increase was partially mitigated by a reduction of HK$25 million in the net impairment trade receivable provision as compared to 2008.

Depreciation

Depreciation in 2009 was HK$265 million (2008 : HK$304 million). The drop in depreciation was because AsiaSat 2 was fully depreciated by early 2009 while the depreciation for AsiaSat 5, which is the replacement of AsiaSat 2, only started from October 2009.

Cash Flows

During 2009, the Group had a net cash outflow of HK$962 million (2008 : inflow of HK$157 million) after capital expenditures of HK$1,364 million (2008 : HK$366 million) and dividends of HK$152 million (2008 : HK$152 million). As at 31 December 2009, the Group reported a cash and cash equivalents balance of HK$1,484 million (2008 : HK$2,445 million). The Group continues to be debt free.

Dividend

At the forthcoming Annual General Meeting ("AGM") to be held on 25 May 2010, directors of the Company ("Directors") will recommend a final dividend of HK$0.32 per share (2008 : HK$0.31 per share). This, together with the interim dividend of HK$0.08 per share (2008 : HK$0.08 per share), gives a total dividend of HK$0.40 per share in 2009 (2008 : HK$0.39 per share). The register of members of the Company will be closed from Tuesday, 18 May 2010 to Tuesday, 25 May 2010 (both days inclusive), during which period no transfer of shares in the Company will be effected.

BUSINESS REVIEW

New satellites

AsiaSat 5

Our new satellite, AsiaSat 5, was launched successfully from the Baikonur Cosmodrome in Kazakhstan, on 12 August 2009 and commenced full service in October 2009, replacing AsiaSat 2 at the orbital location of 100.5°E. AsiaSat 5, a more powerful satellite than AsiaSat 2, is now serving many public and private broadcasters from around the world, a number of wholesale news agencies, video service providers, teleport service providers for video and news distribution and contribution services, as well as governments and VSAT services providers. 4

AsiaSat 7 (formerly AsiaSat 5C)

AsiaSat 5C, which was originally intended to backup AsiaSat 5, has had a name change and is now under construction as AsiaSat 7. Space Systems/Loral is building the new satellite on the SS/L 1300 series satellite platform with performance similar to that of AsiaSat 5. It is designed for the provision of fixed satellite services for television broadcast, telephone networks, and VSAT networks for broadband multimedia services across the Asia Pacific Region. It is scheduled for launch in late 2011, and depending on future market conditions, it will either replace AsiaSat 3S at the orbital location of 105.5°E or be positioned at another orbital slot to take on expanded business.

In-orbit satellites

During 2009, AsiaSat's in-orbit satellites performed well and continued to deliver excellent service to our customers. With the launch of AsiaSat 5, we signed a new lease agreement for AsiaSat 2 and transferred it to a new orbital slot as described below. In addition to AsiaSat 2, the Group‟s fleet now comprises AsiaSat 3S, AsiaSat 4, and AsiaSat 5, which are located in geo-stationary orbital positions over Asia providing our customers with unparalleled coverage across two-thirds of the world's population.

AsiaSat 2 was launched in November 1995 and was positioned at 100.5°E. This satellite carries a payload of 24 C-band and 9 Ku-band transponders. Following its replacement in October 2009 by AsiaSat 5, AsiaSat signed a contract with Spacecom, the operator of the AMOS satellite fleet, for the exclusive use of AsiaSat 2. AsiaSat 2 is renamed AMOS-5i and repositioned to 17°E, where it now serves the African continent.

AsiaSat 3S was launched in March 1999 and is positioned at 105.5°E. This satellite carries 28 C-band and 16 Ku-band transponders and its overall utilisation rate as at 31 December 2009 was 71% (2008 : 69%).

AsiaSat 4 was launched in April 2003 and is positioned at 122°E. This satellite carries 28 C-band and 20 Ku-band transponders including four Hong Kong BSS (broadcast satellite service) transponders. Its overall utilisation rate as at 31 December 2009 was 68% (2008 : 58%).

AsiaSat 5 was launched in August 2009 and is positioned at 100.5°E. It commenced full service in October 2009. This satellite carries 26 C-band and 14 Ku-band transponders and its overall utilisation rate as at 31 December 2009 was 54%.

The total number of transponders on the Company‟s satellites leased and sold (excluding AMOS-5i) as at 31 December 2009 was 85 (31 December 2008 : 76) with an overall utilisation rate of 65% (2008 : 60%). This figure includes the four BSS transponders provided for our Direct-to-Home (DTH) service and three transponders allocated for occasional use and Satellite News Gathering (SNG) services.

DISH-HD Asia Satellite

In June 2009, AsiaSat formed a joint venture with EchoStar Corporation, a leading provider of end-to-end satellite pay TV delivery systems and a designer and manufacturer of equipment for satellite, IPTV, cable, terrestrial and the consumer electronics markets. The joint venture is to deliver high definition DTH satellite television services to Taiwan and other targeted regions in Asia, starting service in late 2009. The business of our DTH-focused subsidiary, Skywave TV Limited, which is 80% held by the Company, has been incorporated into our joint venture, DISH-HD Asia Satellite Limited ("DISH AsiaSat"). The DTH services are currently in soft launch, with formal launch scheduled in the first half of 2010. As DISH AsiaSat is still in the early stage of operation, it has incurred a loss of HK$24 million during the year. 5

Transponder master agreement with CITIC Group

As mentioned in the 2008 Annual Report, a transponder master agreement between AsiaSat, CITIC Networks Co., Ltd. ("CITIC Networks", a wholly-owned subsidiary of CITIC Group), and CITIC Networks Co., Ltd Beijing Satellite Telecommunications Branch ("CITICSat", the branch established and run by CITIC Networks) was approved by the independent shareholders in January 2009. The agreement granted AsiaSat the right to provide transponder capacity to the customers of CITICSat and CITIC Networks.

The revenue from CITICSat contributed HK$54 million to the Group‟s turnover for the year.

SpeedCast

SpeedCast provides two-way satellite services including broadband access services to customers across Asia and beyond.

SpeedCast‟s turnover for the year ended 31 December 2009 was HK$170 million (2008 : HK$118 million). The company recorded a net profit of HK$14 million for the year (2008 : HK$0.7 million). This was mainly attributable to the growth in revenue from the two-way broadband access business.

COMPLIANCE

In 2009, we successfully deregistered from the U.S. Securities and Exchange Commission (SEC). Going forward, we will continue to maintain the same rigorous standards of corporate governance.

OUTLOOK

In 2009, AsiaSat enjoyed increased transponder utilisation rates, an increase in backlog and a promising flow of significant new contracts and renewals.

In our last Annual Report, we made reference to the economic uncertainty that would face the satellite industry in 2009. The global economic downturn that arose because of the financial crisis did not have a serious impact on our market or our business last year. The fundamental growth drivers of our industry remain in place, and we believe that the Asian satellite industry will continue to have opportunities for growth.

Industry growth will be driven in the long-term by two key factors: the technological advantages that satellites hold over terrestrial systems as a platform for the broadcast industry and increased competition across multiple platforms within Asia‟s television, internet and mobile telecommunications markets. In the short to medium-term, there is clear growth potential in HDTV technology, Internet Protocol Television (IPTV), video-to-mobile and DTH services, as well as in mobile and internet connectivity in rural and remote areas.

AsiaSat is uniquely positioned to benefit from this growth. Economic uncertainty often favours market leaders with strong and trusted reputations. We have delivered consistent top line growth throughout the crisis and downturn, expanding our business while the effects of the economy limited the progress of many of our rivals. The launch of AsiaSat 5, with its additional transponder capacity, has upgraded our overall service offering. 6

DIRECTORS AND SENIOR MANAGEMENT

I would like to welcome Mr. LUO Ning who joined the Board on 22 January 2010. I would also like to express my sincere thanks to Mr. DING Yu Cheng for his past years‟ service in the Board.

Mr. Peter JACKSON will retire from his current position as a Chief Executive Officer on 31 July 2010 and then be appointed as Executive Chairman on 1 August 2010 and will stay in his current role as Executive Director of the Company until 31 July 2011. Mr. Jackson will maintain his strategic involvement in steering the Company‟s success. Mr. William WADE, currently the Deputy Chief Executive Officer, will be appointed as the Chief Executive Officer in place of Mr. Jackson. I would like to express my sincere gratitude on behalf of the Board of Directors to Mr. Jackson for his many years of exceptional service. AsiaSat‟s strong reputation in the industry and its bright future are a credit to his leadership and his vision. We look forward to his continued contributions as AsiaSat‟s Executive Chairman.

I would also like to take this opportunity to express our sincere appreciation of the support from our customers, suppliers and shareholders. I would also like to thank my fellow directors for their valuable contribution and the staff members of the Group for their commitment and dedicated service throughout the year.

Sherwood P. Dodge

Chairman

Hong Kong, 26 March 2010