SES GLOBAL reports stable revenues at constant exchange rates and increased contract backlog in first half, in a difficult market environment

SES GLOBAL (Luxembourg and Frankfurt Stock Exchange: SESG), the world’s leading satellite operator, announces consolidated results for the six months to 30 June 2003.

HIGHLIGHTS

• Total revenues declined 10% to EUR 642 million (2002: EUR 712 million). Excluding currency exchange factors, revenues remained stable compared to the prior year period
• EBITDA of EUR 515 million (80.1% EBITDA margin) supported by a 6.5% reduction in total operating costs
• Profit of the Group was EUR 115 million (2002: EUR 125 million)
• Free Cash Flow rose to EUR 720 million, and was the principal factor in the reduction of net debt by EUR 618 million, or 23%, to EUR 2,043 million
• Contract backlog rose to EUR 6.1 billion with over EUR 1.0 billion of new and renewed contracts being added in the period
• Standard & Poor’s have raised SES GLOBAL’s credit rating to BBB+ (stable outlook)

"These results continue to demonstrate SES GLOBAL’s financial strength and the stability of our business. Whereas revenues in the period declined, as foreseen, due to the negative impact of the stronger Euro on the translation of US dollar denominated revenues, the EBITDA margin stayed high at above 80% and profit of the Group was impacted to a lesser degree due to the favourable currency translation impact on dollar-denominated costs.

Even though demand for new business remains soft in general, we made important progress in the implementation of our strategy. SES AMERICOM signed a first contract for its AMERICOM2Home^SM satellite capacity with EchoStar as an anchor customer, in addition to other new cable neighbourhood and broadcast contracts. SES ASTRA signed new and renewal contracts with blue-chip customers including the BBC, BT and MTV. As a result, over EUR 1 billion has been added to the Group contract backlog during the first half of 2003. Our strong net operating cash flow, combined with lower Group capital expenditure and proceeds from insurance claims resulted in an exceptionally high free cash flow, which was used to pay down debt. Net debt was reduced by 23% to some EUR 2 billion.

We continue to build on this sound business and financial foundation and look to the future with confidence."

Romain Bausch, President & CEO, SES GLOBAL

1. FINANCIAL SUMMARY

Exchange rates

The relevant Euro/US dollar exchange rates used in the preparation of the financial statements were as follows (1 Euro = x)

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Additional information is available on our website www.ses-global.com

2. PRESIDENT AND CEO's STATEMENT

The results of the first half of 2003 confirm SES GLOBAL’s leadership in the sector. We have extended our client base, exercised strong cost control, and continue to deliver the highest EBITDA margin in the industry.

The financial result for the first six months of 2003 is consistent with the guidance given at the time of our 2002 full-year results announcement in March. The 10% fall in our total revenues is mainly due to the weakness of the US dollar in the period. At constant exchange rates, revenues remain stable. Total revenues include a non-recurring revenue increase of EUR 14.0 million compared to the prior year period.

In the period we continued to generate substantial cash flow, which allowed us to aggressively pay down our debt. Net debt now stands at EUR 2.0 billion, 23% lower than at the end of last year. Insurance receipts related to the claims for the total loss of ASTRA 1K and for the loss of some transponder capacity on ASTRA 1G added to the free cash flow.

As almost all of our debt, the bulk of the goodwill on our balance sheet and SES AMERICOM’s depreciable assets are US dollar-denominated, the weakness of the US currency which impacted our top line revenues had the opposite effect when it came to recording interest paid, amortisation of goodwill and depreciation charges.

The last six months have seen our Group delivering on its strategy in all of our operational areas. SES AMERICOM has scored a great success in signing the first anchor customer for its AMERICOM2Home^SM initiative, which retains considerable potential; SES ASTRA has signed several new and renewal transponder contracts with blue-chip customers. These business wins have contributed to an addition of more than EUR 1 billion to our contract backlog, which now stands at over EUR 6.1 billion. In a development subsequent to the mid-year, SES ASTRA and the German public broadcasters ARD and ZDF have agreed new long-term contracts for analogue and digital satellite broadcasts. Two new satellites were launched (SES AMERICOM launched AMC-9; AsiaSat launched AsiaSat 4), and SES ASTRA ordered two replacement satellites, ASTRA 1KR and ASTRA 1L, due to be launched in 2005 and 2006 respectively. We also made good progress in a couple of key service development activities.

In August 2003, Standard & Poor’s raised SES GLOBAL’s credit rating by a notch to BBB+ (stable outlook), reflecting our strong contract backlog, operating track record and limited capital expenditures in the near term. This positive development supports our efforts to achieve lower financing costs.

We not only commit to deliver an outstanding service to our customers, we also endeavour to deliver high returns to our shareholders. To achieve this we are working to optimise SES GLOBAL’s debt financing structure, while retaining sufficient financial flexibility to take advantage of business opportunities when they arise. We are also reviewing a number of options to improve the trading liquidity of our securities and achieve a higher valuation.

OUTLOOK

We will continue to focus on the delivery of our strategic objectives in 2003 and beyond. We will strengthen our core businesses with the roll-out of AMERICOM2Home^SM in the US, and extending ASTRA’s reach in Europe.

The Group is establishing a separate business unit aimed at enhancing the returns from trans-oceanic assets, including the new satellite capacity that will be launched on AMC-12 and AMC-13.

In line with our strategy, we continue to develop new services and products that will drive demand for satellite capacity. These include the two-way broadband services currently marketed/commercialised by SATLYNX, and the one-way DSL via satellite services which have been growing steadily across Europe, as well as SATMODE, a narrowband satellite return channel optimised for interactive TV applications. With transponder capacity available in orbit, growth resulting from these services can be achieved with minimal additional investment.

For the full year, total revenues, at constant exchange rates, are projected to be only marginally below the prior year, with the EBITDA margin in the core business being maintained at around 80%. Capital expenditure is expected to be around EUR 150 million in the second half, and to be financed out of cash generated by operations in the same period. We expect therefore to be able to maintain a strong free cash flow position in the second half of 2003.

As the business environment starts showing signs of recovery, we expect to continue to add to our customer base and to further increase our contract backlog during the rest of the year. This growth can be achieved within the existing fleet configuration and the current capital expenditure programme.

3. OPERATIONAL REVIEW

3.1 SES ASTRA

Highlights

• New customers signed up for broadcast, broadband and other services
• ASTRA penetration increased in Europe
• Two new satellites, ASTRA 1KR and ASTRA 1L ordered
• Development of SATMODE, a satellite return channel for interactive TV applications

During the first six months of 2003, SES ASTRA performed well despite a challenging media and broadcast environment , which was marked by continued subdued advertisement spending and ongoing consolidation among broadcasters.

The broadcast direct-to-home market

SES ASTRA concluded a number of new contracts for the provision of capacity services to existing and new customers, for both analogue and digital capacity at ASTRA’s two main orbital positions, 19.2° and 28.2° East.

At 28.2° East, the orbital location serving the UK and Ireland, SES ASTRA contracted additional capacity to longstanding customer the BBC (two transponders), to Kingston inmedia (one full transponder), to BT Broadcast Services (one transponder for the provision of free-to-air and pay-TV services), and to Ideal Shopping (additional capacity to broadcast the Goldshield Vitality and the Create and Craft channels).

At 19.2° East, the prime orbital position serving Continental Europe, SES ASTRA signed both renewal and new contracts for analogue and digital capacity. Kinderkanal, a German-language children’s channel, signed a contract for the long-term renewal of analogue distribution, as well as for the extension of prime time transmission hours. Euvia Travel signed a contract for the analogue distribution of TV travel channel TV Sonnenklar targeting the German-language markets in Europe. BTV4, a German regional TV channel, signed up for the continued distribution in both analogue and digital. Radio DLA CIBIE, a new Polish radio station, and TV TRWAM, a Polish TV channel, contracted for digital free-to-air capacity.

MTV2Pop and MTV Networks Europe renewed their capacity agreement for analogue distribution via ASTRA. PIN 24 also renewed analogue capacity at 19.2° East.

In a development subsequent to the mid-year, SES ASTRA and the German public broadcasters ARD and ZDF have agreed new long-term contracts for analogue and digital satellite broadcasts.

Broadband services

SES ASTRA contracted additional capacity for the transmission of broadband services. SES ASTRA also concluded contracts with a number of customers, such as FAST TV, to transmit Electronic Programme Guide updates.

SES ASTRA teamed up with partners CANAL SATELLITE, CANAL+TECHNOLOGIES, NEWTEC, STMicroelectronics, and THOMSON, to develop a low cost satellite-based return channel for direct-to-home set-top-boxes. The technology, named SATMODE, is to be used in interactive TV applications. The EUR 49 million project is co-funded by the European Space Agency.

Other Services

VRT, the Flemish public service broadcaster, signed up for full time capacity on ASTRA 1A at 5.2° East for contribution links. SES ASTRA and Hellas Sat concluded an agreement under which SES ASTRA will provide technical and consultancy services to Hellas Sat. Under the TechCom service name, SES ASTRA will provide TT&C services (Telemetry, Tracking & Command) for a period of 12 months for the Hellas Sat satellite, launched on May 13, 2003. SES ASTRA will also provide, install, and integrate two ground control stations for Hellas Sat, located in Greece and Cyprus.

ASTRA penetration increased in Europe

During 2002, the ASTRA audience in Europe showed continued growth and ASTRA maintained its position as the leading European satellite system for direct-to-home reception. At the beginning of 2003, some 91.8 million cable and satellite homes in 30 European countries were served by the ASTRA Satellite System via its orbital positions 19.2° East and 28.2° East. A total of 34.4 million households in Europe now receive ASTRA services directly via satellite. The main growth markets for ASTRA direct-to-home reception were France, Germany, Italy, Spain and the Netherlands. Both ASTRA orbital positions 19.2° East and 28.2° East used for direct-to-home broadcast platforms showed audience growth.

The audience growth is led by the continuing increase in digital reception. At the start of 2003, 15.2 million homes received digital services via ASTRA - up from 14 million a year earlier. In the very competitive Digital Satellite TV sector, ASTRA now reaches almost four out of every five digital satellite homes in Europe, and is well positioned for new business opportunities in broadcast and broadband services.

ASTRA also maintained its leadership in analogue broadcasting. In early 2003, ASTRA provided analogue services directly to more than 21.7 million homes in Europe, 83% of the total analogue satellite market in 30 countries.

SES ASTRA satellite fleet developments

The ASTRA satellite fleet, consisting of 13 satellites at 4 orbital positions, continued to operate according to the highest standards of reliability throughout the first half of 2003, with a 99.999% availability rate. Of the 196 transponders which are commercially available on the ASTRA Satellite System at 19.2°, 28.2°, and 23.5/24.2°, 160 (82%) were contracted as of June 30, 2003. In addition, ASTRA provides capacity on ASTRA 1A in inclined orbit at 5.2° East, via a steerable beam on ASTRA 2B at 28.2° East for use outside of Europe, and at 28.5° East, on third-party contracted capacity.

SES ASTRA concluded a procurement contract with Lockheed Martin covering the design and construction of two high-powered communications satellites to be deployed at ASTRA’s prime continental European orbital position of 19.2° East. The first satellite, ASTRA 1KR, featuring 32 active transponders in the FSS band, will replace ASTRA 1B and ASTRA 1C and is scheduled for launch in the second half of 2005. The second satellite, which will be built in parallel to ASTRA 1KR and is scheduled for launch in 2006, serves two missions. In case of launch success of ASTRA 1KR, it will be configured to include a Ka-band payload. Named ASTRA 1L, it will replace ASTRA 1E and reinforce ASTRA’s intersatellite back-up concept by providing capacity in Ku-band (FSS and BSS) and in Ka-band. In case of launch failure of ASTRA 1KR, the second satellite will replace that spacecraft.

Other developments

SES ASTRA implemented a social plan aimed at optimising the company’s organisation structure and at adapting its headcount to the changing market environment. By June 30, 2003, the company’s staff numbered 300. A continued overall focus on cost control resulted in a 6.7% reduction of SES ASTRA’s total operating costs compared to the first half year 2002.

In the litigation between SES ASTRA and Mr. Clay T. Whitehead, the Luxembourg Court of Appeals accepted the amount of dividends to be paid to Mr. Whitehead as submitted by SES ASTRA, corresponding to a pay-out of EUR 30.1 million for the years 1992 to 2001. This amount is paid out of shareholder reserves and does not affect the profitability of SES ASTRA.

3.2 SES AMERICOM

Highlights

• AMERICOM2Home^SM signed a long-term service agreement with EchoStar
• New customers signed up for cable neighbourhoods, broadcasts and government services
• AMC-9 successfully launched and brought into operation
• Ownership in AAP increased to 100%

During the first half of 2003, SES AMERICOM reaped the benefits of the growth strategy defined a year ago, while continuing to enhance the business’s solid base for future growth. The positive developments recorded during the first six months of 2003 extend through all of the company’s business areas, from residential services to media and enterprise solutions, as well as government services.

AMERICOM2Home^SM – from vision to reality

The first half of 2003 saw the realisation of the AMERICOM2Home^SM platform for the transmission of DBS services in the US. In a long-term service agreement, SES AMERICOM will provide satellite capacity to EchoStar Communications for the delivery of TV and broadband content directly to users’ homes in the US from 105° West. EchoStar leased capacity on the upcoming AMC-15 spacecraft, planned for launch in 2004, as well as interim capacity on AMC-2 in the run-up to the deployment of AMC-15. AMERICOM2Home^SM will generate revenues in the second half of 2003, and has significantly contributed to the increased contract backlog of SES AMERICOM.

Reinforcing cable neighbourhoods

SES AMERICOM reinforced its core business area in its cable neighbourhoods. Discovery Communications, Inc. signed a long term, multi-transponder agreement for next generation C-band capacity on AMC-10 and AMC-11, to be launched in 2004. Discovery’s US family of networks will use these two new spacecraft as its distribution platform. AMC-10 and AMC-11, which will replace the Satcom C-3 and C-4 satellites, will form SES AMERICOM’s premier cable satellite neighbourhood at 131° and 135° West. SES AMERICOM also announced the extension of its DigitalC® cable programming distribution service to its premier cable neighbourhood aboard the AMC-10 and AMC-11 spacecraft in early 2004. DigitalC® enables programmers to take advantage of cost-effective, digital bandwidth and services solutions to improve their programming delivery capabilities.

New broadcast contracts

SES AMERICOM enhanced the religious programme line-up distributed via AMC-4. Cornerstone TeleVision Network (CTVN) has signed a multi-year agreement for C-band capacity on this spacecraft to distribute their ministry-based programming services to broadcast affiliated stations that reach over 35 million households. Adventist Television Network (ATN) has signed a multi-year agreement for Ku-band distribution of their US television service on AMC-4, providing religious as well as public health and education programming.

SES AMERICOM also introduced SignalSATSM, a new satellite-based alternative service to feed local broadcast TV signals to off-air repeaters, cable head-ends, and DBS uplink sites, thus maximising the audience reach of broadcast TV stations.

Enhanced broadband offer

SES AMERICOM entered into a strategic relationship with Foundation Telecommunications, Inc. (FTI) to enable cable system operators to deliver broadband Internet connectivity to their subscribers. FTI’s new service is a low cost, high speed, two-way satellite Internet backbone equipment and services package specifically engineered for use in small system applications.

Government Services on the rise

AMERICOM Government Services (AGS), a wholly-owned subsidiary of SES AMERICOM dedicated to providing satellite services to government agencies and US federal contractors, showed marked growth of activities and revenues during the first half.

AGS was awarded a GSA schedule from the US federal government’s General Services Administration, increasing the efficiency of the purchase of capacity services on select spacecraft and uplink and downlink services. AGS also concluded a business collaboration agreement with JSAT Corporation of Japan to mutually support each company’s service of US government-related satellite-based communications in the Asia-Pacific region. Based on the agreement, JSAT will support AGS in securing contracts for U.S government-related services by providing transponder capacity.

SES AMERICOM takes full control of AMERICOM ASIA-PACIFIC (“AAP”)

On 27 June 2003, SES AMERICOM became the 100% owner of AMERICOM ASIA-PACIFIC, formerly a 50/50 joint venture with Lockheed Martin. AAP provides high-powered capacity and state-of-the-art services to programmers, VSAT networks, telcos, carriers, ICPs, ISPs and their customers throughout the Asia-Pacific region via AAP-1, located at 108.2° East.

The transaction was concluded with minimal cash expenditure. SES AMERICOM paid Lockheed Martin USD $58.7 million for its 50% share of the joint venture; Lockheed Martin paid USD $50.7 million to SES AMERICOM in respect of its outstanding obligations under the Frequency License Agreement for the 108.2º East orbital position, resulting in the recognition of EUR 48.4 million as Other Operating Income in the period.

The transaction is expected to enhance SES AMERICOM’s opportunities to generate value from this asset and to contribute to the rationalisation of the SES GLOBAL Group’s satellite assets in the region.

SES AMERICOM satellite fleet developments

On June 6, 2003, the AMC-9 satellite was successfully launched on board a Proton – Breeze M rocket from the Baikonur Cosmodrome. The hybrid spacecraft, whose design is based on an Alcatel Spacebus 3000B3 platform, entered operational service on 30 June 2003 at 85° West. It provides increased power in both C-band and Ku-band for entertainment, enterprise and government customers who transitioned from the AMC-2 spacecraft. AMC-2 has been re-deployed at 105° West, where it is serving as the preliminary AMERICOM2Home^SM platform for EchoStar Communications.

The SES AMERICOM satellite fleet was greatly enhanced in the six months with the addition of both AMC-9 and AAP-1 to the commercial inventory. The SES AMERICOM fleet, which at June 30, 2003 consisted of 16 satellites at 15 orbital positions, continued to operate according to the highest standards of reliability throughout the first half of 2003, with a 99.999% availability rate; 63% of the 444 commercially available transponders were contracted as of 30 June 2003.

4. FINANCIAL REVIEW

Segment information
For the six months ended June 30, 2002.

Total revenues

Total revenues declined EUR 69.9 million, or 9.8%, to EUR 642.2 million (2002: EUR 712.1 million). Of this fall, EUR 64.2 million can be attributed directly to the impact of the stronger Euro on the consolidated revenue streams of SES AMERICOM and AsiaSat such that, on a constant exchange rate basis, revenues are at a similar level to the prior year. Revenues include a contribution of EUR 6.2 million from the Group’s interest in SATLYNX (2002: nil).

Non-recurring revenues increased by EUR 14.0 million, mainly due to the EUR 48.4 million recognised in the period within the framework of the acquisition of the remaining 50% interest in AAP.

Earnings before interest, tax, depreciation and amortisation (“EBITDA”)

EBITDA for the period was EUR 514.5 million (2002: EUR 575.5 million), a reduction of EUR 61.0 million, or 10.6%. The EBITDA margin was 80.1% (2002: 80.8%). This movement was mainly influenced by exchange rate movements with the fall on a constant exchange rate basis being only EUR 7.3 million or 1.4%, of which EUR 4.2 million relates to the first time half-year consolidation of SATLYNX.

The Group has maintained a tight management of its cost base with total reported operating expenses falling by 6.5% compared to the prior year period. Excluding the impact of SATLYNX and on a constant exchange rate basis the fall in total operating expenses was 7.0%.

The EBITDA margin was held at a level commensurate with the corresponding prior year period and in line with the financial targets set by the Group for its operations. Excluding the impact of the AAP transaction related revenues and of SATLYNX, the EBITDA margin remained above 80%.

Depreciation and Amortisation

The total charge for depreciation and amortisation rose EUR 23.3 million, or 8.4%, to EUR 300.4 million (2002: EUR 277.1 million).

The reported decrease in the Group’s depreciation charge of EUR 10.6 million, or 6.2%, to EUR 161.3 million (2002: EUR 171.9 million) was principally due to exchange rate movements. On a constant exchange rate basis, depreciation rose EUR 6.5 million, due mainly to a first time contribution from SATLYNX of EUR 2.8 million, and increased ASTRA charges of EUR 3.3 million arising largely from the full-period depreciation of ASTRA 3A, which entered service in April 2002. Neither of the two satellites launched in the first half of 2003, AMC-9 and AsiaSat 4, entered operational service before June 30th.

The reported charge for amortisation rose EUR 33.9 million, or 32.2%, to EUR 139.1 million (2002: EUR 105.2 million). On a constant exchange rate basis, the charge for amortisation rose EUR 50.6 million due to a one-off write-down of intangible assets of EUR 45.0 million arising in relation to the acquisition of the remaining 50% shareholding in AAP, and the first time consolidation of SATLYNX which contributed EUR 5.0 million.

Operating profit

The reduction in operating profit of EUR 84.3 million, or 28.3%, to EUR 214.1 million (2002: EUR 298.4 million) was again significantly impacted by the strength of the Euro against the US dollar and Hong Kong dollar compared to the prior year period, and by the first-time proportional consolidation of SATLYNX. Although strongly favourable at the EBITDA level, the impact of the AAP transaction was not significant at the operating profit level due to the associated write-down taken on intangible assets.

Net financing charges

Total reported financing costs fell EUR 45.7 million, or 94.0%, to EUR 2.9 million (2002: EUR 48.6 million), including lower net interest charges of EUR 23.8 million and higher gains on foreign exchange of EUR 19.2 million. The charge for value adjustments fell from EUR 4.5 million in 2002 to EUR 1.6 million in 2003.

The fall in net interest charges is the result of the settlement of bank borrowings in the first half of 2003, the lower prevailing interest rates on the remaining borrowings, and the impact of the stronger Euro on the translation of USD denominated interest charges.

The risks of future movements of exchange rates between the Euro and the US dollar are actively managed using appropriate financial instruments.

Taxation

The tax charge fell by EUR 20.8 million, or 20.7%, to EUR 79.8 million (2002: EUR 100.6 million) with the reported tax rate, at 37.8%, dropping 2.5 percentage points from the prior year level. The Group continues to review its operations to ensure that they are carried on within appropriate tax-efficient structures.

Share of associates’ result

The share of associates’ result is similar to the prior year. There were no additions or disposals of investments accounted for using the equity method during or between the two periods.

Minority interest

The minority interest of EUR 18.4 million (2002: EUR 26.5 million) relates to the 65.9% share of AsiaSat statutory profits attributable to the other AsiaSat shareholders.

Profit of the Group

Profit of the Group was EUR 114.6 million (2002: EUR 125.2 million). Excluding the first-time impact of the SATLYNX consolidation of EUR 10.4 million, profit of the Group was similar to the prior year.

Earnings per A-share are EUR 0.19 (2002: EUR 0.21) reflecting the 8.5% reduction in the profit of the Group noted above.

Capital expenditure

Capital expenditure in the period was EUR 201.8 million (2002: EUR 329.7 million). The reduction of EUR 127.9 million arose primarily at SES AMERICOM due to the timing of certain milestone payments on the satellite procurement programmes AMC-12 and AMC-13 outside the period under review. Exchange rate movements also contributed to the reduction. At both ASTRA and AsiaSat, capital expenditure was at a lower level than in the prior year due to the completion of the ASTRA 1K and AsiaSat 4 programmes respectively.

In the period, ASTRA signed procurement contracts for two satellites, ASTRA 1KR and ASTRA 1L, which have targeted launch dates of September 2005 and August 2006 respectively. These are the only current satellite construction projects in SES ASTRA and no costs have yet been capitalised on these satellite programmes.

SES AMERICOM has five satellites under construction as at June 30, 2003, with targeted launch dates between January 2004 and August 2004.

Cash Flow

Net operating cash flow fell from EUR 591.3 million to EUR 527.5 million, reflecting the lower reported EBITDA level and the impact of the stronger Euro on cash generated by the operations of SES AMERICOM.

At the free cash flow level, the Group reported an increase of EUR 555.0 million to EUR 720.3 million (2002: EUR 165.3 million), resulting from: the settlement of the ASTRA 1G & ASTRA 1K insurance claims made in December 2002, which were settled in the first half of 2003; lower Group capital expenditures; and gains resulting from Treasury management operations.

Net debt

Group net debt fell from EUR 2,661.1 million at the year-end to EUR 2,043.1 million at 30 June 2003, with a fall in cash holdings of EUR 93.8 million being set against a reduction in amounts payable to credit institutions of EUR 711.8 million. The strong free cash flow in the first half of 2003 has been used to pay down bank borrowings by EUR 592.5 million, with the balance of the reduction in amounts payable to credit institutions arising on favourable exchange movements on US-dollar denominated borrowings.

Substantial re-financing activities were completed in the first half of 2003 to take advantage of more favourable terms and conditions and to establish a stronger natural hedge against the Group’s US-dollar denominated assets.

Contract backlog

The Group contract backlog rose from EUR 6.0 billion at 31 December 2002 to EUR 6.1 billion at 30 June 2003 despite the adverse effect of the stronger Euro on the US-dollar denominated SES AMERICOM backlog. This was achieved by adding over EUR 1 billion of new and renewed contracts to backlog during the first half of 2003, the most significant additions being new contracts with EchoStar, NBC, the Discovery channel, and the BBC.

Constant exchange rates

References in the financial review to movements on a constant exchange rate basis refer to those differences arising after restating the prior period financial information using the exchange rates prevailing in the current period.

5. CONSOLIDATED PROFIT AND LOSS ACCOUNT

In June 2003, the Company increased its interest in AMERICOM ASIA-PACIFIC from 50% to 100% and the investment is fully consolidated from this point. Previously the investment was accounted for using proportional consolidation.

(1) The results have been subject to a limited review by the Company’s auditors Ernst & Young
(2) Taken from the audited consolidated financial statements of SES GLOBAL S.A. for the year ended December 31, 2002
(3) Earnings per share is calculated by dividing the net profit attributable to ordinary shareholders for the period by the weighted average number of shares outstanding during the year as adjusted to reflect the economic rights of each class of share.

For the period ended June 30, 2003, the adjusted weighted average number of shares outstanding for each class of shares was: Class A - 310,340,000; Class B - 98,327,134; and Class C - 181,295,672, which corresponds to the position for the period ended June 30, 2002.

6. CONSOLIDATED BALANCE SHEET

In June 2003, the Company increased its interest in AMERICOM ASIA-PACIFIC from 50% to 100% and the investment is fully consolidated from this point. Previously the investment was accounted for using proportional consolidation.

(1) The results have been subject to a limited review by the Company’s auditors Ernst & Young
(2) Taken from the audited consolidated financial statements of SES GLOBAL S.A. for the year ended December 31, 2002

7. SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS

	6 months to 30.06.2003¹   EUR million	6 months to 30.06.2002¹   EUR million	12 months to 31.12.2002²   EUR million
Consolidated net income before taxes	211.2	249.8	437.5
Adjustment for non-cash items	240.6	262.3	450.6
Consolidated operating profit before working capital changes	451.8	512.1	888.1
Changes in operating assets and liabilities	75.7	79.2	163.7
Net operating cash flow	527.5	591.3	1,051.8
Net cash generated (absorbed) by investing activities	192.8	(426.0)	(745.4)
Free cash flow	720.3	165.3	306.4
Net cash (absorbed) / generated by financing activities	(780.4)	(298.7)	(616.8)
Movements in exchange	(33.7)	(51.4)	(76.0)
(Decrease)/increase in cash	(93.8)	(184.8)	(386.4)
Cash at beginning of the period	286.9	673.3	673.3
Cash at beginning of the period	193.1	488.5	286.9

In June 2003, the Company increased its interest in AMERICOM ASIA-PACIFIC from 50% to 100% and the investment is fully consolidated from this point. Previously the investment was accounted for using proportional consolidation.

     1) The results have been subject to a limited review by the Company’s auditors Ernst & Young
     2) Taken from the audited consolidated financial statements of SES GLOBAL S.A. for the year ended December 31, 2002