APT Satellite Announces 2010 Interim Results

24 August 2010

APT Satellite Holdings Limited a provider of high-quality satellite transponder, telecommunications and broadcasting services in Asia Pacific, announced its

unaudited interim results for the six months ended 30 June 2010 (the “Period”)

The Group’s turnover for the Period amounted to HK$363,157,000 (2009: HK$229,519,000). Profit attributable to equity shareholders rose 85% year-on-year to reach HK$97,507,000 (2009: HK$52,814,000). Diluted earnings per share was HK 23.56 cents (2009: HK12.78 cents). In view of the need of capital for new satellite development, the board of directors of the Company has resolved not to declare any payment of interim dividend for the six months ended 30 June 2010

(2009: Nil).

Mr. Cheng Guangren, Executive Director and President of the Group, said, “I am very pleased with the good operating results that the Group achieved for the first half of 2010. Although during the Period the Group was still affected by fierce market competition in the Asia Pacific region, the Group has successfully entered into new markets and expanded its customer base, thereby increasing the overall utilization rate of its satellites compared to the same period last year.

Meanwhile, for APSTAR 2R, the Group took back in July 2009 the 43 transponders which it had previously leased to Telesat Canada and as a result, the Group’s income during the Period rose substantially as compared to the same period last year .”

APSTAR 6, based on the SB4100C1 model, started commercial operation in June 2005, is equipped with 38 C-band transponders and 12 Ku-band transponders. As at 30 June 2010, its utilization was 76%, representing an increase of approximately 5.75 percentage-points as compared to the same period last year.

APSTAR 5, based on the FS1300 model, started commercial operation in August 2004. As at 30 June 2010, the Group held interests in 20 C-band transponders and 9 Ku-band transponders, and the utilization rate was 78%, a similar level as compared to the same period last year.

As to APSTAR 2R, it was constructed on the FS1300 model and launched in October 1997, and contains 28 C-band transponders and 16 Ku-band transponders. The C-band transponders cover Europe, Asia, Africa and Australia, covering approximately 75% of the world’s population, and Ku-band transponders cover mainly China and some adjacent countries and regions. As at 30 June

2010, its utilization was 82%.

For the purpose of replacing APSTAR 2R, which will retire at the end of 2012, APT Satellite Company Limited (“APT-HK”), a wholly-owned subsidiary of the Group, entered into a satellite procurement contract in September 2009 with Thales Alenia Space France for the manufacturing and delivery of APSTAR 7 Satellite for launch in the first quarter of 2012. The satellite is a high-power geostationary communication satellite using the Spacebus 4000 C2 Platform carrying 28 C-band and 28 Ku-band transponders. APT-HK also signed a launch services contract in

November 2009 with China Great Wall Industry Corporation for the launch and associated services of APSTAR 7 Satellite on launch vehicle LM-3B enhanced version at the Xichang Satellite Launch Center in Sichuan Province, the PRC. APT-HK also entered into agreements with the above-mentioned two companies for the manufacturing and delivery of APSTAR 7B Satellite and associated launch services, as a backup satellite of APSTAR 7.

The Group provides satellite TV uplink/downlink and broadcasting services through APT Satellite TV Development Limited (“APTTV”), a wholly-owned subsidiary of the Group, and has successfully established a satellite TV broadcasting platform under the Satellite TV Uplink and Downlink License. On 27 February 2010, the Broadcasting Authority of Hong Kong has granted to APTTV the new Non-domestic Television Programme Service Licence for a period of validity

of 12 years. The Group’s future broadcasting services will be provided in accordance with the newly granted Non-domestic Television Programme Service Licence.

APT Telecom Services Limited, a wholly-owned subsidiary of the Group, provides satellite-based external telecommunication services such as VSAT, facilities management services, satellite telecommunications and satellite TV uplink services to telecommunications operators and satellite operators in the region under the Fixed Carrier Licence of Hong Kong.

Looking ahead, Mr. Cheng commented, “On the basis of increasing the utilizations of APSTAR 5 and APSTAR 6, the Group will leverage the growth potential arising from APSTAR 2R with a view to increasing the Group’s profits and return on investment. Meanwhile, the Group will closely monitor the implementation of APSTAR 7 and APSTAR 7B Satellites in an effort to ensure

the quality and delivery schedules of these new satellite projects, thereby assuring continued business growth in future.”