CONTINUED RECORD RESULTS FOR SES: GROUP REVENUES UP 40%; OPERATING PROFIT UP 46% Dynamic organic growth in Europe; first time consolidation of AsiaSat

HIGHLIGHTS

• Group Revenues up 40.3% at Euro 725.2 million;
• Group Operating Profit up 45.7% to Euro 407.0 million;
• Earnings per share (EPS) up 14.4% to Euro 5.41;
• Dividend of Euro 2.60 recommended;
• Acquisition of AsiaSat stake (34.13%);
• Strong growth in demand for transponder capacity in Europe;
• Continued increase in ASTRA's European audience, to 78 million homes;
• Successful launch of ASTRA 1H, SES' ninth satellite;
• Four additional satellites under procurement.

States Romain Bausch, Director General and Chairman of the Management Committee: "In 1999, SES continued to build on its leading position in Europe, while the acquisition of a strategic participation in AsiaSat has extended our reach to cover three quarters of the world's population. The year 2000 has started strongly and the two scheduled satellite launches this year will significantly expand our capacity. A number of strategic initiatives related to broadband multimedia and Internet services are currently being developed and will be announced in due course. These will capitalize on the unique advantages and ubiquity that ASTRA offers for broadband connectivity into millions of homes."

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OPERATIONAL REVIEW

1999 saw SES expand its business throughout the entire range of services (TV, radio and multimedia/Internet) provided by the ASTRA Satellite System. The company reinforced the basis for future increased equity value while strengthening its leading market position.

ASTRA audiences across Europe grew both in direct-to-home (DTH) and cable reception to 78 million homes by year-end 1999. As DTH reception grew by 6.6% to 28.25 million households, digital became the exclusive driver of growth in this audience segment, while analogue reception declined for the first time on a pan European scale.

The number of audio-visual services transmitted via the fleet of 9 ASTRA satellites to audiences across Europe increased from 871 to 938 between January and December 1999. This growth is a consequence of the roll-out of additional digital services across the European continent, notably in the UK, Germany and France.

A similar surge has been recorded in multimedia services. 11.5 ASTRA transponders were contracted by year-end 1999 for these broadband services, ranging from enhanced or interactive TV, broadband Internet delivery and other consumer-focused services, to business-to-business transmissions, using the ASTRA-NET service network operated by SES Multimedia S.A. During 1999, SES Multimedia's client base has grown from 22 to 35 business customers.

Through the provision of broadband transmission capacity - from full transponder contracts to the use of defined bit-rate capacity - and by using open standards based on DVB and Internet Protocol, ASTRA provides a full range of services tailored to customers' needs: DVB broadcasting, IP-streamed channels, on-demand services, broadband Internet delivery and high-speed transmission of data packages for corporate use.

Following the successful launch of the Company's ninth satellite (ASTRA 1H on June 18th, 1999), SES now has an operational Ka-Band payload in orbit. This will support the commercial introduction of the ASTRA Broadband Interactive System in 2000, allowing interactive broadband applications via satellite on small "receive and transmit" terminals.

On January 15th, 1999, SES concluded the acquisition of a 34.13% stake in AsiaSat, the leading satellite operator in the Asia- Pacific region. The company today operates three satellites and the successful introduction of the AsiaSat 3S satellite in May 1999 provided AsiaSat with valuable additional transponder capacity at the 105.5° East orbital location.

Following its AsiaSat investment, SES has enhanced multimedia connectivity beyond Europe by deploying an ASTRA-NET platform in Hong Kong, and by bringing to life its "one-stop-shop" concept. This enables TV, radio and multimedia customers to connect to users across Europe, Asia and Australia, providing access to three quarters of the world's population.

CURRENT OPERATIONS AND OUTLOOK

The year 2000 has started strongly, with demand for capacity, particularly in digital, remaining at high levels. The Y2K transition was effected without any problems and all systems are operating to specification.

ASTRA 2B is scheduled for launch in May 2000 and will be joined at the 28.2° East orbital position by Astra 2D following its planned launch in December 2000.

The ASTRA Broadband Interactive System is scheduled to enter commercial service prior to year-end, delivering two-way broadband interactivity via ASTRA 1H's Ka-Band payload.

SES remains committed to its strategy to build a global broadband satellite communication system and is confident that further progress towards this objective will be achieved in 2000.

FINANCIAL REVIEW

Group revenues for the financial year ended December 31, 1999 increased by EUR 208.3 million, or 40.3%, to EUR 725.2 million. Excluding the impact of AsiaSat, revenues increased by EUR 113.9 million or 22.0%. This growth is due to the continued development of digital services at both orbital positions, including the launch of new Internet and multimedia services.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by EUR 164.1 million, or 39.4%, to EUR 580.5 million. The first time consolidation of AsiaSat resulted in a contribution of EUR 71.6 million. The Group EBITDA margin for the year ended December 31, 1999 was 80.0%, a slight decrease from the 80.6% recorded in the previous year. This reduction was due to the cost of the temporary rental of the Sirius 3 satellite until the end of October 1999. Excluding this item, continued attention to cost control resulted in operating expenses growing at a slower rate than revenues.

Depreciation and amortisation increased by EUR 36.4 million, or 26.5%, to EUR 173.5 million. The increase in depreciation is due to the first time consolidation of AsiaSat and the amortisation of the goodwill arising from the acquisition. The total goodwill arising from the AsiaSat transaction of EUR 223.8 million is being amortised over a period of 20 years from the date of acquisition (January 15, 1999). Excluding these two factors, the increase was EUR 3.4 million, or 2.5%. During the year, ASTRA 1H commenced services from September 1, 1999 and AsiaSat 3S became operational in May 1999. Two satellites were fully depreciated in 1999, namely ASTRA 1A (in January) and AsiaSat 1 (in May).

Operating profit demonstrated strong growth, increasing by EUR 127.7 million, or 45.7%, to EUR 407.0 million. The increase due to the AsiaSat consolidation was EUR 38.6 million. Excluding AsiaSat, operating profit grew by 31.9%, thanks to continued revenue growth and ongoing cost control. In particular, the highly successful roll-out of digital services in the UK market was represented by the first full year contribution from ASTRA 2A, which was launched in August 1998 and which was fully utilised as at the end of the year.

Taxation and franchise fees increased by EUR 74.0 million, or 102.2%, to EUR 146.4 million, as a result of higher profits and a higher effective tax and franchise fee rate. The increase in franchise fees due to the continued growth of profits was EUR 20.7 million or 39.2%. The remaining increase of EUR 53.3 million is due to higher income taxes, as unlike previous years, investment tax credits did not fully offset corporate income taxes. The 1999 effective tax and franchise fees rate was 39.1% compared to 29.4% in 1998.

Minority interests of EUR 26.8 million represent the 65.87% share of AsiaSat profits attributable to the other AsiaSat shareholders.

Profit of the Group increased by EUR 25.1 million, or 14.2% to EUR 201.3 million. Excluding the impact of the AsiaSat acquisition, profit of the Group increased 18.2%. The temporary earnings dilution as a result of the acquisition of the stake in AsiaSat was lower than expected due to translation gains and lower overall transaction costs. The 1999 net income margin was 27.8% compared to 34.1% in 1998. Excluding the AsiaSat full consolidation impact, the 1999 net income margin was 33.0%.

Capital expenditures for the financial year ended 31st December 1999 were EUR 263.6 million compared to EUR 123.4 million in the previous year. Approximately 30 % of this increase (or EUR 42.2 million) is due to the first-time consolidation of AsiaSat, with the balance coming from continued investment in the ASTRA satellite fleet. During the year, the company made significant payments in respect of ASTRA 1H, ASTRA 2B, ASTRA 2C, ASTRA 2D and ASTRA 1K. The ASTRA 1H satellite commenced service on September 1, 1999 at 19.2° East.

Net operating cash flow increased by EUR 367.8 million to EUR 632.6 million. The impact of the first time consolidation of AsiaSat on operating cash flow is EUR 53.6 million. Excluding the AsiaSat impact, the increase of EUR 314.2 million or 118.7% is due to the continued growth in profits and year on year change in working capital. This is mainly due to the short-term timing effect of the deferred payment of certain trade payables related to capital expenditures and to the increase in payables for taxes and franchise fees.

Net debt increased by 11.2%, or EUR 56.5 million to EUR 559.6 million, principally due to the acquisition of the stake in AsiaSat. This investment was funded by senior debt of EUR 99.2 million, subordinated debt of EUR 148.7 million, with the balance from SES internal funds. Following the investment in AsiaSat, the financial ratios of the Group, in particular debt to equity, remain solid.

Société Européenne des Satellites S.A.

Summary Consolidated Accounts

The accounts are subject to approval by the Annual General Meeting of Shareholders scheduled for the 17^th April 2000.

BACKGROUND SES

Société Européenne des Satellites S.A. (SES) is the operator of ASTRA, Europe's leading direct-to-home Satellite System. As of 31st of December 1999, of all European households receiving TV by either satellite or cable, 78 million (91.3%) received one or more channels via the ASTRA system. ASTRA now reaches some 46.5% of all European TV households.

SES securities are listed on the Luxembourg Stock Exchange (symbol: SES) and the Frankfurt Stock Exchange (symbol: SDSL).

ASTRA currently transmits 565 analogue and digital television channels and 373 analogue and digital radio channels over 152 transponders to audiences within its European footprint.

SES' customer base includes most of the leading public and private broadcasters in Europe and abroad, notably the German public broadcasters ARD and ZDF; BBC (UK); BSkyB (UK); Flextech (UK); Canal+ (France); CLT-UFA (Luxembourg); the Kirch Gruppe (Germany); Pro 7 (Germany); Sogecable (Spain); Turner Broadcasting (USA); Viacom (USA) and Wizja TV (Poland).

The ASTRA Satellite System comprises eight geostationary satellites at the orbital position of 19.2° East. In addition, a ninth GEO satellite is permanently operational since October 1st, 1998 at SES' second orbital position of 28.2° East to provide satellite digital services in the UK and the Republic of Ireland.

SES currently has four additional satellites under construction which are due for launch before the end of the year 2001. ASTRA 1K will provide back-up and additional capacity at 19.2° East while ASTRA 2B, ASTRA 2C and ASTRA 2D will be co-positioned with ASTRA 2A at 28.2° East.

SES is also a pioneer of interactive and multimedia services through SES Multimedia, a wholly owned subsidiary. SES Multimedia 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 plans to be the first European satellite operator to commercially exploit the Ka-band frequency for interactive and multimedia services in Europe. In 2000, SES will commence operations of a return channel system via satellite which will serve the growing market in Western and Central Europe for 2-way asymmetric, high-speed broadband collection and delivery of multimedia content.

On January 15th, 1999, SES acquired an indirect stake of 34.13% in AsiaSat, Asia's premier satellite operator. Reaching 53 countries in the Asia-Pacific region, the combined footprints of ASTRA and AsiaSat cover three-quarters of the world's population. AsiaSat is quoted on both the Hong Kong (HKSE: 1135) and the New York (NYSE: SAT) Stock Exchanges.

For further information: www.ses-astra.com or www.asiasat.com