SES SHAREHOLDERS APPROVE 1997 ACCOUNTS AND INITIATE PROCEDURE FOR IPO

The shareholders of Société Européenne des Satellites (SES), at their Annual General Meeting today, approved the company’s 1997 accounts and initiated procedures for an Initial Public Offering (IPO). SES is the operator of ASTRA, Europe’s leading satellite system with an audience of more than 70 million households.

Sales revenues of MLUF 17,874 and profits of MLUF 6,406

SES sales revenues reached 17,874 MLUF in 1997, an increase of 27% over the previous year. Revenue growth reflects increasing demand for digital transponder capacity on the ASTRA Satellite System during the year. In particular, the revenue-generating effect of ASTRA 1F, launched in April 1996, has fully developed in 1997.

Taxes and franchise fees payable to the Luxembourg government for 1997 reached 2,691 MLUF, making SES one of the most important contributors to the Grand-Duchy’s revenues.

Growth of sales revenues, coupled with strong cost control and favourable interest and exchange rates, have raised SES’ profits to 6,406 MLUF, an increase of 34% over the previous year.

This excellent financial performance places SES in a strong position to invest in the further development of the ASTRA Satellite System and associated activities. In 1997, the company invested 11,013 MLUF for the acquisition of additional satellites, ground equipment and other activities. This level of profits and investment secures SES’ position as the leading operator of a future-proof and innovative satellite system, designed to meet the needs of the Information Society.

The extension of digital transmission capacity at 19.2° East through incorporating ASTRA 1G into the ASTRA fleet, and the forthcoming launch of ASTRA 2A opening a second orbital position at 28.2° East, will result in added revenues in 1998.

IPO procedure initiated

The shareholders of SES, at their General Meeting, also confirmed their decision to proceed with an Initial Public Offering (IPO) by a listing of FDR’s (Fiduciary Depository Receipts) on the Luxembourg Stock Exchange later this year. All shareholders decided to participate in the IPO by making available part of their holdings. The Company has already appointed banks to lead the offering. An extraordinary General Meeting of shareholders will proceed with the adaptation of the articles of incorporation required for the purpose of the IPO.

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