NSAB AND SES ANNOUNCE AGREEMENT FOR SIRIUS 3 TO BE LEASED BY SES

The Nordic Satellite Company, NSAB, based in Sweden and operating the Sirius satellites, will launch Sirius 3 this autumn. After thorough market analysis NSAB has concluded that the slower than expected roll-out of digital satellite television in Scandinavia will lead to a delay in the demand for transponder capacity in the Nordic market. Within the framework of an agreement concluded on June 19th, 1998, NSAB has therefore leased the Sirius 3 satellite to Luxembourg-based Société Européenne des Satellites (SES), the operator of the ASTRA Satellite System. In addition the agreement opens the possibility for back up capacity to be provided by SES to NSAB.

SES has seized the opportunity to use Sirius 3 for up to 12 months to provide interim transmission capacity, thereby further securing the development of digital services in the UK and Ireland.

By providing back-up capacity to the ASTRA 2A satellite, which is expected to be launched into the orbital location of 28.2° East in August 1998, Sirius 3 will extend the ASTRA Satellite System's inter-satellite protection to SES' second orbital position.

Co-located with ASTRA 2A, the Sirius 3 spacecraft will also make available additional transponder capacity in order to meet the increasing demand of broadcasting customers targeting the UK and Irish markets.

Upon completion of the lease to SES and in no event later than October 1^st, 1999, Sirius 3 will be transferred to NSAB's orbital position in 5° East where it will replace Sirius 1 and offer additional capacity for digital TV and multimedia services.

Comments Mr. Romain Bausch, Director General and Chairman of the Management Committee of SES: "We welcome the agreement reached between NSAB and SES, which will benefit both parties. Beyond developing a second orbital position and providing SES' clients with a secured fleet configuration from the start of operations, this agreement represents a significant first step in SES' strategy of strengthening the Company's cooperation with regional satellite operators."

Klas Änggård, Chairman of NSAB concurs: "We also welcome the agreement reached between our two companies including the potential for further cooperation. Through the agreement we have secured effective and economical use of Sirius 3 during the first year. It is simply good business for both parties."

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NOTE TO THE EDITOR

SIRIUS 3

Sirius 3 is an HS-376 HP-type satellite manufactured by Hughes Space and Communications. The spacecraft carries 15 Ku-band transponders to be operated in the 11.7-12.5 GHz frequency range. Sirius 3 is expected to be launched on board an Ariane launch vehicle from Kourou (French Guyana) in October 1998.

SOCIETE EUROPEENNE DES SATELLITES (SES)

SES is the leading European broadcast satellite operator reaching some 42 per cent of all European TV households. As of the 31^st December 1997, of all European households receiving TV by either satellite or cable, approximately 70 million (or 93 per cent) received one or more channels via ASTRA.

SES transmits via the ASTRA Satellite System 99 analogue and 219 digital television channels and more than 190 analogue and digital radio channels over 120 transponders to 22 European countries.

The ASTRA Satellite System currently comprises six geostationary (GEO) satellites at the position of 19.2° East - the largest number of satellites co-located at one single orbital slot. In addition, a seventh GEO satellite is temporarily located at SES' second orbital position at 28.2° East to permit the launch of satellite digital services later this year for the UK and Republic of Ireland. Confirmed public and private SES customers for digital transmission capacity at 28.2° East include: BBC, BSkyB, Flextech, Discovery, UKTV, Viacom and Turner Broadcasting.

As a pioneer of interactive and multimedia services, SES is the majority shareholder in European Satellite Multimedia Services (ESM), which operates the ASTRA-NET platform, enabling service and content providers to transmit data directly, via satellite, to personal computers in businesses and homes across Europe.

SES has four additional satellites under construction. These are expected to be launched between 1998 and 2000. Two satellites will provide back up capacity for the system at 19.2° East, enabling SES to expand and develop its digital and multimedia services as well as expand its geographic coverage in Eastern Europe. The other two satellites will be permanently positioned at 28.2° East, providing digital services to the UK and Ireland.

The Company's history is characterized by market-driven innovation. SES was the first European satellite operator to offer both analogue and digital broadcasting capacity and services to its clients. SES was also the first satellite operator worldwide to successfully apply the concept of co-locating satellites at the same orbital location (19.2° East) to exploit the entire frequency spectrum at such orbital location. SES expects to be the first satellite operator to commercially exploit the Ka-band frequency for interactive and multimedia services in Europe through the ASTRA Return Channel System (ARCS). Commencing operations in 1999, ARCS will serve the growing market in Europe for 2-way asymmetric, high-speed broadband collection and delivery of multimedia.

SES plans to continue its expansion, both into new geographic regions and into new services, and through the purchase of additional satellites, including Next Generation Systems (Ka-band satellites).

NORDIC SATELLITE COMPANY (NSAB)

In the Nordic region, NSAB provides flexible satellite capacity for DTH-broadcasting as well as other transmission services for TV/radio and data, through the Sirius satellite system - Sirius 1, Sirius 2 and Sirius 3 (to be launched in early October 1998). The satellites cover the Nordic area, the Baltics, Poland and Western Russia with DTH power levels. In addition, NSAB offers pan-European, digital DTH coverage through the European Beam of Sirius 2.

The Sirius location at 5° East is a Hot Bird position for Nordic television viewing with more than 800,000 DTH households tuned in.

EIRP-levels of 52-56 dBW throughout the region allows for small receiver dishes (60 cm), a key factor behind the significant increase of DTH penetration in these countries during the recent years.

NSAB performs marketing activities in the region, such as campaigns directed towards the general public and/or TV-retail chains, in order to promote DTH television and the 5° East position.

NSAB was established in 1983 and is today owned and operated by Swedish Space Corporation (37.5%), Teracom AB (37.5%) and Tele Danmark A/S (25%).

Swedish Space Corporation, owned by the Swedish government, is responsible for the execution of the Swedish space programme and for procurement and daily operation of NSAB's satellites.

Teracom AB, also owned by the Swedish government, is operating a nation-wide ground network for TV and Radio broadcasting. Teracom provides uplinking services to the satellites and assists in the marketing of NSAB's DTH broadcasting services.

Tele Danmark A/S, with activities in tele and data communications, cable-TV and media is a public company listed on the Stock Exchange in Copenhagen and New York. Tele Danmark also provides uplinking services and assists in the marketing of NSAB's services.

The joint expertise and resources of the owners offers a comprehensive service in the field of satellite broadcasting, transmission, uplinking and satellite control, as well as in the new field of digital TV services - coding, multiplexing and digital broadcasting.

For the future, NSAB plans to expand its business through coverage of new geographic regions and through providing services in the field of business communication and Internet.