SES GLOBAL confirms Industry Leadership with strong first half year perfomance

Interim results for the six months ended June 30, 2002

SES GLOBAL S.A. (Luxembourg Stock Exchange: SESG; Frankfurt Stock Exchange: SDSL) today reports interim financial results for the six months ended June 30th, 2002.

1. GROUP HIGHLIGHTS

• Growth in revenues of 58.5% to EUR 712.1 million, in EBITDA of 55.3% to EUR 575.5 million, and in operating profit of 16.2% to EUR 298.4 million, including the first full half-year consolidation of SES AMERICOM
• Profit of the Group, at EUR 125.2 million, fell by 15.3%, as expected, due to the goodwill amortisation and transaction financing charges arising from the SES AMERICOM acquisition. Excluding SES AMERICOM, the profit of the Group was EUR 145.9 million, 1.3% lower than in the corresponding period of the prior year
• Strong cash flow performance with EUR 591.3 million of net operating cash flow compared with EUR 302.6 million for the same period in 2001. Excluding SES AMERICOM, net operating cash flow rose by 15.6%
• Group contract backlog of over EUR 6.7 billion
• SES ASTRA revenues reduced slightly by EUR 19.7 million to EUR 351.2 million
• SES AMERICOM contributed EUR 272.5 million to Group revenues in the period
• Effective cost reduction programmes in place
• Significant progress achieved in the integration of SES AMERICOM
• EBITDA margin holding up well at 80.8%
• Solid performances from AsiaSat and Star One
• Significant progress in integration of SES AMERICOM with substantial reduction of capital expenditure requirements for satellite and launch procurement
• Establishment of SATLYNX to commercialise two-way satellite broadband services in Europe

Commenting today, Romain Bausch, President & CEO of SES GLOBAL, said:

"These results represent a very solid performance by SES GLOBAL in the light of difficult prevailing market conditions. All Group companies contributed, lifting revenues, EBITDA and operating profit.

The combination of SES AMERICOM and SES ASTRA under the SES GLOBAL umbrella lays the foundation for our excellent positioning in the world's key markets for broadcast and broadband satellite services. Coupled with the unmatched expertise of our teams, this offers us the optimum platform for our future development. However, we continue to face a challenging market environment in the near term and, as we have already stated, like-for-like revenues this year are unlikely to match those of last year, and current trading supports this view."

There will be a conference call to discuss the results on Friday 13th September at 14.00 CET. Participants should call in to +44 208 400 6301 five minutes before this time. A replay facility will be available for the following 5 working days, accessible on +44 208 797 2499, PIN: 000295#

FINANCIAL SUMMARY

The financial results for the period ended June 30, 2002 include the fully consolidated results of the Group's wholly-owned subsidiary SES AMERICOM, which was acquired on November 9, 2001, and the Group's 50% proportionally-consolidated investment in AMERICOM ASIA-PACIFIC, LLC, also acquired on that date. As from November 9, 2001, the results of Star One S.A. (Brazil), which had been accounted for as an investment until that date, have been accounted for using the equity method.

The relevant Euro / US dollar exchange rates used in the preparation of the financial statements were as follows: December 31, 2001 - EUR 1:USD 0.89; June 30, 2002 - EUR 1:USD 0.99; average rate January to June 2002 - EUR 1:USD 0.88.

2. PRESIDENT AND CEO's STATEMENT

These results of SES GLOBAL, which were achieved in the difficult prevailing market conditions, represent a very solid performance. All Group companies contributed through the period, lifting revenues, EBITDA and operating profit, although, as expected, profit of the Group declined, principally due to the acquisition costs related to SES AMERICOM, and in particular, amortisation of acquisition goodwill and associated financing costs.

Despite the difficult market conditions, both SES AMERICOM and SES ASTRA continued to demonstrate their strong revenue generation abilities. SES ASTRA's revenues declined slightly over the comparable period, mainly due to the termination of certain analogue services to the UK and Irish markets in connection with the transition from analogue to digital services.

The Group remains strongly cash generative, delivering net operating cash flow of EUR 591 million. As expected, net operating cash flow per A-share increased (+23.4%). The highly visible future income stream from the Group's contract backlog today stands at over EUR 6.7 billion.

The expanded Group has progressed significantly in the process of integrating the operations and expertise of SES AMERICOM, with substantial reduction of capital expenditure requirements for satellite and launch procurement. In the US, the AMERICOM2Home project intends to leverage the Direct-To-Home expertise of SES ASTRA; in Europe, SES AMERICOM's track record in Government Services and satellite-to-cable is supporting SES ASTRA's new initiatives. There has been the establishment of SATLYNX, a joint venture with Gilat Satellite Networks and, potentially, Alcatel Space, to commercialise two-way satellite broadband services in Europe.

Other Group participations made their contribution; AsiaSat achieved increased earnings, and Star One, in Brazil, continued to increase its profitability, being the principal contributor to the EUR 2.5 million share of associates' result.

OUTLOOK

While we expect SES GLOBAL to continue to demonstrate its strengths, with excellent cash generation characteristics, we are not immune from the difficult conditions in our principal markets. We have already stated our expectation that revenues this year are unlikely to match those of last year on a like-for-like full year basis, and current trading supports this view.

The net increase in transponder capacity worldwide creates some pressure on pricing in certain market segments. However, the majority of the Group's revenues are generated from prime satellite applications, where our leading market positions and the high quality of our service offerings limit our exposure to pricing pressures.

Furthermore, the combination of SES AMERICOM and SES ASTRA under the SES GLOBAL umbrella lays the foundation for our excellent positioning in the world's key markets for broadcast and broadband satellite services. Coupled with the unmatched expertise of our teams, this offers us the optimum platform for our future development.

3. OPERATIONAL REVIEW

3.1 SES ASTRA

Satellite Operations

During the first six months of the year, SES ASTRA continued to expand the ASTRA Satellite System. ASTRA 3A, the thirteenth satellite in the ASTRA constellation, has been successfully deployed and commenced operational service at the company's third orbital position 23.5° East.

The satellite provides follow-on capacity for Deutsche Telekom's Kopernikus satellite and features an optimized coverage area for the German-speaking countries of Germany, Austria and Switzerland. Deutsche Telekom has contracted 10 transponders on the 20 transponder spacecraft predominantly to provide cable feeds; the remaining capacity will be marketed by SES ASTRA mainly for the transmission of broadband and IP services. Of the 196 commercially available transponders on the ASTRA System at 19.2° East, 28.2° East and 23.5° East, 156 (80%) were contracted as of June 30, 2002. In addition, SES ASTRA also provided capacity via ASTRA 1A in inclined orbit at 5.2° East, via the steerable beam on ASTRA 2B at 28.2° East for use outside Europe, and at 28.5° East on leased third-party capacity.

The ASTRA satellites at the 19.2° East and 28.2° East orbital positions continued to perform successfully, with a 99.999% availability of the space segment, and a 99.98% availability of the ground network.

Broadcast Services

At the end of June 2002, the ASTRA satellites at 19.2° and 28.2° East carried a total of 1,142 audio-visual broadcast channels, an increase of 40 over year-end 2001.

These included 665 digital TV channels, 50 analogue TV channels and 427 radio channels.

Main developments:

- The BBC contracted an additional transponder on ASTRA at 28.2° East, which it plans to use to enhance the range of interactive programming available to viewers in the UK.
- Tele 5, a German entertainment TV channel, contracted one transponder for analogue free to air transmission on ASTRA at 19.2° East. The service was launched on April 28, 2002.
- Tele 5 Poland and Polonia 1 contracted capacity for free to air digital transmission on ASTRA at 19.2° East. Tele 5, a new movie and entertainment channel, and Polonia 1, a teleshopping channel, launched on April 18, 2002.
- Tango TV, a channel of Tele2 AB Group focusing on youth-oriented programming, contracted for digital free to air capacity on ASTRA at 19.2° East. The service launched on February 2, 2002.
- PIN 24 TV Shop, a TV home shopping channel of the Modern Times Group, launched free to air analogue transmissions on ASTRA at 19.2° East on January 14, 2002.

In May 2002, BetaDigital (Kirch Group) which had contracted for 11.5 transponders, filed for insolvency. SES ASTRA has concluded a contract amendment with BetaDigital's Insolvency Receiver and with Premiere, also a subsidiary of Kirch Pay TV, under which BetaDigital has terminated the contract for the 11.5 transponders and Premiere has contracted for 7.5 of these transponders.

Broadband Services

SES ASTRA has undertaken a restructuring of the customer portfolio of SES Multimedia. SES ASTRA will continue to provide consumer-focused one-way multicast IP services via the ASTRA-NET platform, whereas customers providing two-way broadband satellite services both for the consumer and the enterprise markets will be served by SATLYNX, a newly-created joint-venture between SES GLOBAL, Gilat Satellite Networks, and potentially Alcatel Space.

On May 1st, Deutsche Telekom commercially launched the T-DSL via satellite service "powered by ASTRA", providing high-speed satellite Internet throughout Germany.

Other Services

SES ASTRA generated revenues through ASTRA 1A, which is operated in inclined orbit at 5.2° East. ASTRA 1A provided contribution services on behalf of GermanConnect (formerly ChannelD) and AB Sat. NSAB has contracted one transponder on ASTRA 1A for occasional use services.

Restructuring of SES ASTRA's sales function

During the period under review, SES ASTRA has restructured its Sales and Marketing Department, substantially reinforcing the Sales Group.

3.2 SES AMERICOM

Satellite Operations

During the first six months under review, SES AMERICOM operated its fleet of 16 satellites to the highest standards of reliability and technical excellence. Spacecraft fleet availability was 99.999% and terrestrial network availability was 99.98%. Of the 384 commercially available transponders on AMERICOM satellites, 79% were contracted as of June 30, 2002.

As of June 30, 2002, following the cancellation of two satellite procurement contracts, SES AMERICOM had eight satellites under construction, of which two are ground spares. SES AMERICOM also had ordered a ninth satellite which is currently in a study period. In June 2002, SES AMERICOM signed launch service agreements with International Launch Services for the launch of AMC-10 and AMC-11, and with Arianespace for the launch of AMC-13 and AMC-15. These launches are currently scheduled to occur in 2003 and 2004.

SES AMERICOM de-orbited its Satcom K-2 satellite after more than 16 years of operations. The satellite had operated since 1985 at 81° West and provided services seven years beyond its design life.

New Contracts and Services

At the end of the period under review, the SES AMERICOM satellite fleet transmitted audio-visual programming on behalf of virtually all major cable programmers/broadcasters (two-thirds of SES AMERICOM's transponder capacity is contracted by cable programmers and broadcasters) broadcasting to all major networks and head-ends in the United States, multiple dwellings and hotels. The AMERICOM fleet also transmits a variety of broadband and data services.

Main developments:

- Crown Media United States signed a multi-year transponder agreement for satellite capacity on AMC-11, which will be used for the distribution of the Hallmark Channel. AMC-11 is planned for operation in 2004 as a replacement for Satcom C-3 at 131° West.
- Home Box Office (HBO) signed a multi-transponder service agreement to begin using AMC-4 at 101º West in January, 2003, for the distribution of four analogue multiplex feeds.
- HSN, the originator of TV shopping, signed a long term transponder agreement for next generation C-band capacity on AMC-10, the successor satellite to Satcom C-4 at 135° West. AMC-10 is planned for operation in 2004.
- The European Broadcasting Union (EBU) selected SES AMERICOM to provide satellite capacity to support the EBU and its members in the television coverage of the Winter Olympic Games. SES AMERICOM spacecraft provided a trans-Atlantic connection from the USA to Europe.
- Stratos, a specialised VSAT network services company, signed a multi-year agreement for one Ku-band transponder on AMC-4 to support customers' transmissions throughout North America.
- SES AMERICOM and iDirect, a leading provider of broadband IP solutions over satellite, will jointly market and revenue-share Ku-band satellite capacity on AMC-6 to provide enterprises in the Caribbean and in North and Central America with high-speed, two-way private IP networks and broadband connections to the Internet.

AMERICOM Government Services

AMERICOM Government Services (AGS), a newly-formed business unit of SES AMERICOM dedicated to providing specialised, satellite-based, telecommunications solutions - bandwidth, infrastructure and networking - to Federal government agencies and their contractors, provided its first contribution to revenues and net profit. AGS is currently under contract to serve multiple Federal agencies directly, including the Departments of Commerce, Defense, Justice, Energy, and Interior, as well as working closely with several commercial contractors, including ARTEL, AT&T, Bechtel, Comsat General, CSC, Dyncorp, HGS, and WorldCom.

AMERICOM2Home Platform

SES AMERICOM filed a petition with the Federal Communications Commission to allow the company to offer to U.S. television programme owners and consumers a new satellite platform, called AMERICOM2Home, through which any programmer or content creator could provide satellite television services directly to the public in the U.S. SES AMERICOM would provide these services via a new satellite to be launched into the 105.5° West orbital position, using a licence granted by the government of Gibraltar. A Ku/Ka-band hybrid satellite called AMC-15 is under construction and planned for the adjacent 105° West orbital slot to support broadcast and high-speed broadband connections to the homes of users in the U.S. The open DBS platform approach of AMERICOM2Home is modelled on the success of the ASTRA System operated by SES ASTRA in Europe.

4. FINANCIAL REVIEW

The consolidated financial results presented for the six months ended June 30, 2002 reflect the first half-year reporting period subsequent to the acquisition of SES AMERICOM ("AMERICOM") on November 9, 2001. The strong reported growth in revenues, EBITDA and operating profit is accounted for primarily by the first-time consolidation of AMERICOM - although the acquisition remains, as expected, dilutive at the profit of the Group level as explained below. With strong growth in net operating cash flow and a solid contract backlog, the results underline the strength and growth potential of the new expanded business.

Given the significant impact of the SES AMERICOM acquisition on these financial results, we have addressed our comments not only to movements in the consolidated Group results, but also to developments in the pre-November 9, 2001 business excluding the impact of the SES AMERICOM acquisition. References made to "excluding AMERICOM" are to figures excluding the consolidated impact of the results of the investments in SES AMERICOM, AMERICOM ASIA-PACIFIC LLC, Nahuelsat SA, and Gilat Satellite Networks, all acquired on that date.

Due to the absence of audited figures for GE Americom for the first six months of 2001, like-for-like comparisons cannot be presented, but trends are discussed where deemed appropriate.

SEGMENT INFORMATION

For the six months ended June 30, 2002.

Group revenues

Compared to the corresponding prior year period, revenues grew strongly, primarily due to the contribution of EUR 272.5 million by AMERICOM. Excluding AMERICOM, revenues fell by EUR 11.6 million (2.6%), with the fall in SES ASTRA revenues of EUR 19.7 million being mitigated by growth in the markets of AsiaSat and NSAB.

With respect to the SES ASTRA revenue development, the main driver in the decrease was a drop of EUR 37.8 million in revenues arising at orbital location 19.2° East due essentially to the termination of certain analogue services to the UK and Irish markets. In contrast, revenues generated at orbital position 28.2° East, and SES ASTRA's third orbital location at 23.5° East, continued to grow, with a combined increase of EUR 18.1 million or 22.6% year-on-year, mainly reflecting the transponders contracted at these positions in 2001 and 2002 with ITV, BBC and Deutsche Telekom.

At SES AMERICOM, revenues were impacted by customer insolvencies and early contract terminations, leading to a decline of similar magnitude as that experienced at SES ASTRA.

Earnings before interest, tax, depreciation and amortisation ("EBITDA")

The EBITDA margin of the Group remains robust at 80.8% (80.5% excluding AMERICOM, which achieved an 82.2% margin). The reduction in the EBITDA and EBITDA margin excluding AMERICOM mainly reflects the non-recurring exceptional income booked by SES ASTRA in 2001 and the impact of certain non-recurring restructuring costs incurred in 2002.

Staff costs at Group level rose EUR 27.1 million of which the AMERICOM consolidation contributed EUR 23.3 million. Excluding AMERICOM, staff costs rose EUR 3.8 million (18.3%). There were two drivers behind this increase: non-recurring charges for staff restructuring measures of EUR 1.0 million taken in the first half of 2002; and an increase in overall headcount of 11 to 476. Excluding the non-recurring charge, the increase in staff costs was 13% due to the new positions created at SES GLOBAL and some growth in staff numbers at AsiaSat and NSAB.

Excluding AMERICOM, external and other operating charges were held in line with 2001.

There were no exceptional items in the period. The prior year income related to the recognition of in-orbit insurance proceeds relating to an ASTRA 1A claim made due to partial loss of capacity. The total proceeds were EUR 23.4 million and were amortised over 24 months commencing April 1, 1999.

At SES AMERICOM, external and other operating charges were also similar to the prior period.

Depreciation and Amortisation

The increase in depreciation charges of EUR 79.3 million at the Group level is almost entirely due to the consolidation of depreciation charges at SES AMERICOM (EUR 76.4 million) and AMERICOM ASIA-PACIFIC (EUR 1.8 million). There has been an increase in SES ASTRA depreciation following the successful taking into service of ASTRA 3A in the second quarter of 2002 as well as the first time full six-month period depreciation impact of the satellites ASTRA 2D and ASTRA 2C which became operational in February and September 2001 respectively. Satellite ASTRA 1B was fully written-off in the course of 2001.

The increase in the charge for amortisation at Group level of EUR 84.0 million arises mainly on the EUR 83.2 million of goodwill and other intangible assets generated on the acquisition of SES AMERICOM. The goodwill was valued at USD 2,367.1 million at December 31, 2001 and, in the course of post closure purchase accounting adjustments, has been valued at USD 2,403.7 million at June 30, 2002. The goodwill is being amortised over a 20-year period. Intangible assets with a value of USD 517.2 million were also identified during the acquisition and these are being amortised predominantly over a 20-year period. The increase excluding SES AMERICOM (EUR 0.8 million) represents accelerated amortisation at AsiaSat of the goodwill arising on their investment in Speedcast and on intangibles at SES ASTRA.

Operating profit

Operating profit increased by 16.2% to EUR 298.4 million including the positive effect of the AMERICOM acquisition. There was a reduction of EUR 20.4 million, or 7.9%, in the operating profit excluding AMERICOM of which SES ASTRA contributed EUR 21.5 million due to lower revenues and non-recurring exceptional income.

Net financing charges including value adjustments on financial assets

Interest received and similar income for 2002 includes unrealised foreign exchange gains, primarily on US dollar liabilities, of EUR 14.7 million. The increase in interest paid and similar expenses results from the financing taken on for the AMERICOM acquisition.

The value adjustment relates to the 18% investment in Gilat Satellite Networks Ltd., which was adjusted to reflect its market value as at June 30, 2002.

Taxation

The Group's reported tax rate was in line with expectations at 40.3%, compared to 24.6% in 2001. This increase is mainly due to the non-deductibility for tax purposes of the amortisation charges on the goodwill and intangible assets created on the acquisition of SES AMERICOM. The EUR 7.6 million increase in the tax charge excluding AMERICOM arises mainly at SES ASTRA (increase of EUR 8.8 million) where 2002 investment tax credits were lower than in the prior period.

Excluding the non-deductible charges for the amortisation of consolidated goodwill, and for the amortisation of intangibles arising on the acquisition of SES AMERICOM, the tax rate for the period was 29.5%.

Share of associates' results

The share of associates' loss in 2001 related to iBeam (EUR -2.2 million) and Speedcast Hong Kong (EUR -3.2 million). Whilst Speedcast, and Nahuelsat, contributed losses in 2002 of EUR -0.6 million and EUR -1.2 million respectively, the equity share of the Star One investment, at EUR 4.3 million, results in a positive net share of associates' results.

Minority interests

The minority interests of EUR 26.5 million relates to the 65.9% share of AsiaSat statutory profits attributable to the other AsiaSat shareholders.

Profit of the Group

At EUR 125.2 million, Profit of the Group was down EUR 22.6 million or 15.3% compared to the same period in 2001 mainly due to the impact of the SES AMERICOM acquisition. Though it makes a strong contribution at the EBITDA level, the impact of SES AMERICOM at the Profit of the Group level is dilutive due to the amortisation and transaction charges being set off against its trading performance. Excluding AMERICOM, the Profit of the Group fell by EUR 1.9 million, or 1.3%, compared to the same period of the prior year.

The Profit of the Group includes a positive contribution from the Group's proportionally consolidated affiliate NSAB of EUR 0.8 million and from the investment in Star One, accounted for under the equity method and after deducting transaction financing costs, of EUR 3.2 million. The proportionally consolidated investment in AMERICOM ASIA-PACIFIC and equity-accounted investment in Nahuelsat generated negative contributions to Profit of the Group of EUR -2.3 million and EUR -1.2 million respectively.

Earnings Per Share declined compared to the prior year due to the dilutive impact of the SES AMERICOM transaction outlined above on the Profit of the Group and to the effect of the additional shares issued in connection with the transaction.

Net operating cash flow per A-share rose 23.4% compared to the prior year underlining the strong cash-generative performance of the enlarged Group.

Capital expenditure

Capital expenditure in the period was EUR 329.7 million compared to EUR 181.7 million in the corresponding period of the prior year. Excluding SES AMERICOM the capital expenditure for the period was EUR 69.1 million. After the successful launch of ASTRA 3A in March 2002, SES ASTRA has only one satellite under construction, ASTRA 1K, due for launch in 2002. AsiaSat also has one satellite under construction, AsiaSat 4, now due to be launched in 2003.

As of June 30, 2002, SES AMERICOM had eight additional satellites under construction, of which two are ground spares.

Net operating cash flow

Net operating cash flow continues to grow at the Group level, increasing by 95.4% compared to the same period of the prior year. Excluding SES AMERICOM, the rise was 15.6%, mainly through effective working capital management.

Net debt

In the period under review, net debt decreased by EUR 258.1 million. A reduction in liabilities caused by the settlement of the subordinated loan and the favourable impact of the strengthening Euro on the Group's US dollar-denominated bank facilities were partially offset by a decrease in cash holdings in comparison to the position at December 31, 2001.

On March 28, 2001, SES GLOBAL and SES ASTRA jointly arranged a multi currency term and revolving facilities agreement for the purposes of refinancing existing syndicated loan facilities and arranging acquisition finance for the transaction concluded on November 9, 2001 to acquire SES AMERICOM. At June 30, 2002, the available facilities, and corresponding drawings, were as follows:

• Facility A1 and B1 - USD 2,461 million term loan facilities, available for the purpose of the SES AMERICOM acquisition. Fully drawn.
• Facility C - a EUR 878.3 million term loan facility. Fully drawn.
• Facility D - a EUR 400 million revolving loan facility against which no drawings had been made.

Contract backlog

The combined backlog of SES ASTRA and SES AMERICOM at June 30, 2002, was EUR 6,104 million compared to EUR 6,757 million at December 31, 2001. The weakening of the dollar between January and June 2002 explains EUR 221 million of this movement.

In addition, AsiaSat has a contract backlog at June 30, 2002 of EUR 529 million; SES GLOBAL's share of the backlog of NSAB and AMERICOM ASIA-PACIFIC is EUR 55 million and EUR 46 million respectively. The Group's backlog thus totals EUR 6,734 million.

5. CONSOLIDATED PROFIT AND LOSS ACCOUNT

* The results have been subject to a limited review by the Company's auditors Ernst & Young

(1) The June prior year comparative figures are taken from the consolidated profit and loss account of Société Européenne des Satellites S.A. as at June 30, 2001
(2) The December prior year comparative figures are taken from the audited consolidated financial statements of SES GLOBAL S.A.
(3) These figures exclude the contribution of the entities acquired on November 9, 2001 within the framework of the acquisition of SES AMERICOM.
(4) The contribution to Profit of the Group for the six months to June 30, 2002 of those entities acquired on November 9, 2001 in the framework of the SES AMERICOM transaction was as follows: