SES REPORTS RECORD 1998 REVENUE AND EARNINGS

HIGHLIGHTS

• Revenues up 15% to LUF 20,851 million (EUR 517 million)
• Net income increase of 11% to LUF 7,106 million (EUR 176 million), with an increase of 14% in operating profit
• Earnings per A share increased to LUF 190.8 (EUR 4.73) from LUF 172.0 (EUR 4.26) in the previous year
• The Board of Directors propose a dividend of LUF 91 (EUR 2.26) per A share at the shareholders' meeting on April 15th, 1999
• ASTRA audience in Europe reaches 74.54 million homes, a rise of 5.7%

FINANCIAL SUMMARY	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Total revenues	516.9	20,851	18,075
EBITDA	416.4	16,797	14,488
Operating profit	279.3	11,268	9,859
Net income	176.2	7,106	6,406
Capital expenditures	123.4	4,976	11,013
Net operating cash flow	264.8	10,682	12,258
Net dept	503.1	20,296	19,231
Earnings per A share (in EUR/LUF)	4.73	190.8	172.0

Euro amounts for comparison purposes only, translated at 1 Euro = 40.3399 LUF

Revenues showed significant growth in 1998 due to the start of commercial services on the seventh and eighth satellite in the ASTRA fleet.

Total operating expenses grew at a slower rate than revenues, resulting in improved operating margins (EBITDA) of 80.6% versus 80.2% in the previous year.

The full year's results were affected by an extraordinary charge of LUF 330 million relating to the Company's initial public offering on the Luxembourg Stock Exchange.

Depreciation and amortization expenses grew 19.4% to LUF 5,529 million, reflecting the continued investment in the ASTRA satellite fleet. SES maintains its strong balance sheet position with a year-end net debt of LUF 20,296 million, representing a year-end debt to equity ratio of only 69.9% (71.3% in the previous year).

Romain Bausch, Director General and Chairman of the Management Committee of SES, commented: "It was an important year for SES, highlighted by our initial public offering in July 1998 and the opening of SES' second orbital position at 28.2° East. We believe that we are delivering on the three-pronged strategy stated at the time of the IPO consisting of the consolidation of our core business in Europe, geographic expansion and diversification of our products and services.

The successful launch of digital services in the UK and Poland, the acquisition of a strategic 34.13% stake in AsiaSat, Asia's premier satellite operator, and the launch of SES' multimedia activities were important steps towards the Company's ultimate goal of becoming a global provider of a broadband communications infrastructure.

SES has reconfirmed its position as the leading satellite operator in Europe with an estimated 26,5 million DTH and SMATV dishes pointing to the ASTRA Satellite System and a further 48 million households receiving ASTRA signals via cable redistribution at year-end 1998, an increase of 5.7 % from the previous year.

We believe that 1999 will be another excellent year for the Company with the planned launch of two further satellites, the development of our multimedia activities through the addition of an interactive satellite return channel and the implementation of synergies with AsiaSat. Our objective is to grow our core and new businesses and to seize opportunities that will complement our goal of becoming a one-stop shop for broadcasting and communicating worldwide".

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Note to the Editor:

SES is listed on the Luxembourg Stock Exchange under the form of Fiduciary Depositary Receipts (symbol: SES) and quoted on SEAQ International in London and XETRA.

For further information, a detailed financial commentary as well as a review of SES' operations is attached:

• Financial Commentary
• The Business Environment
• Summary Consolidated Accounts

FINANCIAL COMMENTARY

Group Revenues for the financial year ended 31 December 1998 increased 15.4% to LUF 20,851 million. This increase is due primarily to the start of services on Astra 1G in January, which expanded the provision of digital audio-visual services in France, Germany and Spain. In addition, ASTRA 2A entered into commercial service in October to provide digital audio-visual services to the UK and Ireland.

The launch of ASTRA 2A services contributed to a strong performance in the second half year, with revenues rising 17.7% (to LUF 10,760 million) compared to the second half of 1997. Group revenues also reflect the initial launch of multimedia services through European Satellite Multimedia Services S.A.

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 16.0% to LUF 16,797 million. The 1998 EBITDA ratio grew to 80.6% compared to 80.2% in 1997, as operating expenses increased at a slower rate than revenues. Total operating expenses (which include external charges, staff costs and other operating costs) increased 13%, primarily due to the start up operating expenses relating to new multimedia activities and the opening up of SES' second orbital position at 28.2° East.

Depreciation and amortization increased by LUF 900 million or 19.4% to LUF 5,529 million reflecting the continued investment in the ASTRA satellite fleet. Specifically, the increase is explained by a full year's charge in respect of ASTRA 1G and 3 months depreciation for ASTRA 2A plus their associated ground equipment.

Net financing charges rose by LUF 177 million or 20.8% to LUF 1,027 million due to higher net debt reflecting the investment in new satellites mentioned above.

The above factors led to an increase in the profit on ordinary activities (i.e. profit before extraordinary items, taxes and franchise fees) of 13.7% to LUF 10,241 million.

The extraordinary expense of LUF 330 million relates to the costs incurred by the company resulting from the Initial Public Offering completed in July on the Luxembourg Stock Exchange.

Franchise fees and taxes increased to LUF 2,921 million due to the growth increase in profits. As a result of the Company's continued investments in satellite capacity and the resulting investment tax credits, the effective taxes and franchise fee rate was 29.4 % for the year.

Profit of the group reached LUF 7,106 million, an 11% rise or LUF 700 million over the previous year with a corresponding increase in earnings per A share to LUF 190.8 (LUF 172.0 in 1997).

Capital expenditures during the year amounted to LUF 4,976 million, which represents a decline versus 1997 of 54.8%. This arises from the timing of satellite and launch vehicle payments, which reflect the progress payments on satellite contracts. During the year the company completed payments in respect of the ASTRA 2A satellite and its launch and insurance, and commenced investment in the ASTRA Business Centre.

Operating Cash Flow at LUF 10,682 million was LUF 1,576 million lower than the previous year. This decline is primarily due to the change in trade creditors arising from capital expenditures. In 1997 trade creditors increased by LUF 1,445 million while in 1998 there was a reduction of LUF 1.064 million. However the underlying trend in operating cash flow remains at a very satisfactory level.

Net debt (total loans less cash) increased 5.5% at year-end 1998 to LUF 20,296 million versus LUF 19,231 million at the end of the previous year. This increase does not reflect the average debt situation during the year as substantial amounts were repaid from cash flow in the second half of the year. This situation is achieved despite the payment of a special dividend of LUF 1,862 million just prior to the Initial Public Offering.

There was no minority interest in the balance sheet at the 31 December 1998 due to the acquisition by SES in the last quarter of the shares held by the minority shareholders in European Satellite Multimedia Finance S.A.

KEY PERFORMANCE RATIOS	12 months ended December 31
	1998 %	1997 %	1996 %	1995 %
EBITDA margin	80.6	80.2	83.0	75.9
Net income margin	34.1	35.4	33.9	27.8
Return on average equity	25.4	25.8	22.6	14.9
Debt to equity	69.9	71.3	80.9	65.0

THE BUSINESS ENVIRONMENT:

Sustained Growth in the European Satellite Services Market

The European satellite and cable markets show consistent growth through 1998. For the first time, the number of satellite and cable homes exceeds 80 million in Europe. At year-end, direct to home and communal (SMATV) reception reached 31.1 million households in Europe, an increase of 8.3%, 2.4 million, over 12 months. Cable audiences grew by 5.6% to 49.7 million households.

Digital reception is gathering momentum and is now one of the key drivers of satellite DTH reception growth. The number of total subscribers to digital DTH pay services in Europe more than doubled in 1998 to reach 4.2 million by the year end. The SES Satellite monitors confirm that ASTRA is Europe's leading provider of digital satellite services with more than 62% market share of the digital DTH market.

ASTRA Audience Increases by 4.0 million households

During 1998, the total ASTRA audience increased by 4.0 million to 74.5 million satellite and cable households. Of these, 26.5 million received ASTRA direct-to-home (DTH/SMATV) broadcasts (+1.7 million). 48.0 million received ASTRA via cable networks (+2.3 million).

ASTRA now reaches 85.2% of all direct reception satellite households and 92.3% of satellite and cable households. ASTRA direct reception growth is fuelled by the demand for digital services, particularly in France, Spain, the UK, Germany and Poland.

Future growth of satellite direct reception will continue to be driven by digital. More than 4,5 million TV households in the six largest European countries intend to acquire digital TV over the next six months. Following the launch of digital services in the UK and in Poland during the last quarter of 1998, satellite digital reception is forecast to approach 7 million households by the end of 1999.

The ASTRA Satellite System

In 1998, additional transmission capacity was added to the ASTRA Satellite System, with ASTRA 1G entering operational service at the orbital position of 19.2° East, and ASTRA 2A opening a second orbital position at 28.2° East. Also, in order to provide replacement and back-up capacity for ASTRA 2A at 28.2° East, SES leased the Sirius 3 spacecraft from the Nordic Satellite Company (NSAB) for a period of up to 12 months.

As of December 31, 1998, ASTRA provided 148 transponders on eight operational satellites at two orbital positions, allowing the transmission of hundreds of analogue and digital TV and radio services and of broadcast and multicast multimedia content. At year-end, 133 transponders were contracted to leading European and international broadcasting customers.

SES' 1998 investments in the space and ground infrastructure reached LUF 4,976 million (Euro 123.3 million).

1998 Highlights

• SES enhances ASTRA Satellite System: in January, ASTRA 1G enters operational service at 19.2° East; in August, ASTRA 2A is successfully launched and is permanently positioned at SES' second orbital position at 28.2° East.
• SES consolidates second orbital position at 28.2° East: In July, the International Telecommunications Union's (ITU) Radio Regulations Board (RRB) decides that the satellite network Europesat 1 shall no longer be taken into account when analyzing modifications or enhancements to the BSS (Broadcast Satellite Services) plan.
• SES conducts an Initial Public Offering of one sixth of the company's equity.
• SES enters new digital markets: In September, Wizja TV launches a package of Polish-language channels; in October, Sky Digital and the BBC launch digital services for the UK.
• SES renews long-term transponder contracts for analogue broadcasts on ASTRA 1A.
• SES creates a 100%-owned marketing affiliate in Poland, ASTRA Marketing Poland.
• SES diversifies services: In January, the ASTRA-NET multimedia platform takes up commercial service.
• SES restructures multimedia activities through the creation of SES Multimedia S.A.

SOCIETE EUROPEENNE DES SATELLITES S.A.

Summary Consolidated Accounts

Profit and Loss	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Total revenues	516.9	20,851	18,075
Personnel costs	(22.2)	(896)	(760)
External and other operating charges	(78.3)	(3,158)	(2,827)
Depreciation	(137.1)	(5,529)	(4,629)
Operating profit before extraordinary items	297.3	11,268	9,859
Net financing charges	(25.4)	(1,027)	(850)
Profit on ordinary activities	253.9	10,241	9,009
Extraordinary expenses	(8.2)	(330)	-
Taxes and franchise fees	(72.4)	(2,921)	(2,696)
Minority interest	2.9	116	93
Profit of the Group	176.2	7,106	6,406

Balance sheet	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Assets
Intangible fixed assets	4.6	188	10
Tangible fixed assets in use	885.0	35,701	33,733
Tangible fixed assets under construction	415.9	16,779	19,300
Total fixed assets	1,305.5	52,668	53,043
Trade and other debtors	123.7	4,987	4,716
Cash at bank and on deposit	98.3	3,967	5,595
Other assets	63.1	2,543	555
Total assets	1,590.6	64,165	63,909
Liabilities and Capital
Shareholder's finds (including minority interest)	719.7	29,031	26,954
Bank loans	545.8	22,013	21,076
Shareholder loans	55.8	2,250	3,750
Trade and other creditors	86.4	3,490	5,093
Other liabilities and provisions	182.9	7,381	7,036
Total liabilities	1,590.6	64,165	63,909

Statement of cashflow December 31	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Profit of the group	176.2	7,106	6,406
Minority interests	(2.9)	(116)	(93)
Depreciation and amortisation	137.1	5,529	4,629
Other operating profit items	(19.2)	(770)	(692)
Net cash (absorbed)/generated by operations	(26,4)	(1,067)	2,008
Net operating cashflow	264.8	10,682	12,258
Net cash absorbed by investing activities	(169.4)	(6,834)	(11,020)
Net (repayments of borrowings)/new borrowings	(14.0)	(563)	3,262
Dividends paid	(121.6)	(4,905)	(2,278)
Minority interest	(0.2)	(8)	193
(Decrease)/Increase in cash	(40.4)	(1,628)	2,415
Cash at beginning of the year	138.7	5,595	3,180
Cash at end of the year	98.3	3,967	5,595

Euro amounts for comparison purposes only, translated at 1 Euro = 40.3399 LUF

The accounts are subject to approval by the Annual General Meeting of Shareholders scheduled for the 15^th April 1999.