Eutelsat Communications Reports Revenue for the First Quarter 2007-2008 and Announces Mid-Term Growth Objectives

Eutelsat Communications Reports Revenue for the First Quarter 2007-2008 and Announces Mid-Term Growth Objectives

PARIS, October 23/PRNewswire-FirstCall/ --

- Continued revenue growth: + 6.2% compared to first quarter 2006-2007
- Sustained development of Video Applications : +10.7%
- Growth of Value-Added Services : +10.6%

- Confirmation of objectives for the 2007-2008 financial year
- Revenue between 840 and 850 million euros
- EBITDA margin above 77.5%

- Objectives for growth over three years 2007-2010(1)
- Revenue CAGR in excess of 5.5%(2)
- EBITDA margin in excess 77%

Paris, October 23, 2007 - Eutelsat Communications (ISIN: FR0010221234 -
Euronext Paris: ETL), one of the world's leading satellite operators, today
reported revenue for the first quarter ended September 30, 2007.

The Group also reconfirms objectives disclosed on July 26, 2007 for the
current fiscal year, and announces its main objectives for the period
2007-2010.

Revenue by application

First quarter ended Change
September 30
In millions of euros 2006 2007 In in %
millions
of euros
Video Applications 142.8 158.1 + 15.3 + 10.7 %
Data & Value Added 40.8 37.2 - 3.5 - 8.7 %
Services
Multi-usage 14.7 14.5 - 0.2 - 1.3 %
Other 1.3 2.0 + 0.8
Sub-total 199.5 211.9 + 12.4 + 6.2 %
Total 199.5 211.9 + 12.4 + 6.2 %(3)

Commenting on 2006-2007 results, Giuliano Berretta, Chairman
and Chief Executive Officer of Eutelsat Communications said:

"Our increase in revenue for the first quarter of our
2007-2008 financial year shows the continuing good performance of our
markets. This strong performance is fully in line with our full-year
objective to achieve recurring revenue of 840 to 850 million euros and an
EBITDA margin exceeding 77.5%.

Our video and broadband services continue to benefit from the
overall strong dynamics of broadcasting and Internet markets. In both these
activities, Eutelsat Communications enjoys a position of solid leadership in
more mature markets in Western Europe, and a longstanding presence in regions
experiencing rapid growth, including Russia, Central Europe, the Middle East
and Africa. Drawing on this dynamic we are now targeting revenue CAGR of more
than 5.5% for the period 2007-2010 with accelerated growth at the end of this
period, and an EBITDA margin above 77%.

In parallel, Eutelsat Communications will continue to pursue
its objective of further strengthening and renewing our in-orbit
infrastructure, with five satellites due to be launched from the 2008-2009
financial year. We are also set on continuing our policy of innovation with
the upcoming order of a Ka-band satellite, which is scheduled to go into
service in the 2010-2011 financial year. The deployment of this new Ka-band
infrastructure at our 13 degrees East position will enable us to address new
business opportunities, notably broadband access for homes situated beyond
range of terrestrial networks, and delivering local channels and Triple Play
services. These services can be combined with reception of channels broadcast
from our HOT BIRD(TM) neighbourhood, which is the leading pole for consumer
satellite digital services in Europe.

Our Group also confirms the implementation of an attractive
distribution policy to shareholders, representing between 50% and 75% of net
income Group share."

ACTIVITY FOR THE FIRST QUARTER 2007-2008

The 6.2% revenue growth compared with the first quarter 2006-2007 mainly
reflects:

- Expansion of in-orbit resources during the previous financial year,
with the opening of three new orbital positions taking the number of
operational transponders from 462 at June 30, 2006 to 505 at June 30, 2007;

- Strong momentum of Video Applications, in particular in the Second
Continent(4), but also in Western Europe;

- Development of Value Added Services in Western Europe and in the Second
Continent, partly compensating a decrease in Data Services.

The close to 11% year-on-year growth in Video Applications (74.6% of
revenue) is mainly driven by the full effect of broadcasting contracts
activated during the previous financial year, notably following the opening
of the orbital positions 7degrees West (ATLANTIC BIRDTM 4) and 9degrees East
(EUROBIRDTM 9)(5).

The number of channels broadcast across Eutelsat's fleet increased to
2,733 at September 30, 2007. Compared to June 30, 2007, a total of 125 new
channels were broadcasting of which 91 from Eutelsat's major orbital video
positions serving principally Central Europe, Russia, the Middle East, Turkey
and Africa. In comparison to September 30, 2006 the overall channel count
increased by 380.

The evolution of Data and Value Added Services (17.6% of revenues)
reflects contrasting performances:

- The decrease of Data Services at 29.1 million euros is due principally
to the transformation during the previous financial year of certain
short-term contracts into long-term contracts which, in counterpart, bear
more visibility, and also to reallocation to Video Applications of capacity
previously leased for Data Services and made available at the expiry of the
relevant contracts.

- Growth of Value Added Services (+10.6% at 8.2 million euros) is driven
by strong take-up of the D-STAR broadband service which benefited mainly from
the full effect of the deployment during the previous financial year of more
than 2,100 D-STAR terminals.

Multi-usage (6.8% of revenue) showed a slight year-on-year decrease (0.2
million euros) reflecting:

- Unfavourable EUR/$ exchange rates. At constant exchange rates,
Multi-usage year-on-year revenue growth would have been 6.6%

- The end in March 2007 of a capacity contract with a satellite operator
from the Middle East;

- 26% growth at constant exchange rates of government services, driven by
the full effect of contracts activated following the entry into service of
EUROBIRD(TM) 4 at 4degrees East, as well as by the renewal of all contracts
which had expired during the previous fiscal year.

GROUP MID-TERM OBJECTIVES

Beyond objectives disclosed on July 26, 2007 for the 2007-2008
financial year, Eutelsat Communications announces its objectives for three
years covering the period 2007-2010(6):

- To deliver growth and profitability:

- Revenue CAGR above 5.5%(7)

- EBITDA margin above 77%

- To invest on average 420 million euros per year to strengthen its
infrastructure

- To maintain a solid financial structure:

- Pay-out ratio of 50% to 75% of net income Group share

- Net debt to EBITDA ratio between 3x and 4x

Deliver growth and profitability

For the 2007-2008 financial year, the Group confirms revenue
objectives of 840 to 850 million euros and an EBITDA margin objective above
77.5%.

For the period 2007-2010, Eutelsat Communications targets
revenue CAGR above 5.5% with a strong acceleration at the end of this period
following the planned entry into service of five satellites in financial
years 2008-2009 and 2009-2010, and by dynamic management of its in-orbit
resources.

With an EBITDA margin objective above 77% for the period, the
Group also aims to maintain its top-ranking position for profitability
amongst leading FSS(8) operators.

Strengthen infrastructure

In addition to the five satellites already in construction
(W2M, W2A, W7, HOT BIRDTM 9 and HOT BIRDTM 10), the Group will procure a
Ka-band satellite during the 2007-2008 financial year for entry into service
in the financial year 2010-2011. During the 2007-2010 period, the Group also
expects to initiate investments to replace satellites launched between 1998
and 2000.

Average annual capital expenditure is consequently expected to
amount to 420 million euros over the 2007-2010 period. This will increase
physical operational transponders from 505 at June 30, 2007 to 630 at June
30, 2010 and up to 718 with the entry into service of the Ka-band satellite.

Over the long term, on an annualised and normalised basis, the
Group confirms its capital expenditure estimates for the progressive renewal
of its in orbit resources and ground equipment. This should represent an
average of approximately 260 million euros per year.

Lastly, the Group has initiated a review of the future
evolution of its in-orbit resource with a view to further strengthening and
securing a number of orbital positions.

Maintain a solid financial structure

The Group confirms the distribution policy disclosed on July 26, 2007 of
a pay-out ratio between 50% and 75% of net income Group share.

Given this distribution policy and its planned capital expenditure
programme, Eutelsat Communications confirms its objective to maintain a solid
financial structure with a net debt to EBITDA ratio between 3x and 4x over
the 2007-2010 period.

The above stated objectives are based on the following main assumptions
(i) continued development of video applications in regions targeted by the
Group with ramp-up of HDTV over the medium-term and on-going development of
digital television in these geographic areas, (ii) confirmation of the growth
trend in satellite-based high-speed Internet access and increased demand for
Data services, (iii) and of a tendency towards stabilisation - or in certain
segments, increase - of the average price of capacity under new contracts or
renewals of existing contracts. These objectives are also based on the
following non-exhaustive assumptions (i) maintenance of existing operational
capacity of the Group's fleet, (ii) execution of the currently planned
investment programme and successful launches of new satellites mentioned
above within the expected timeframe, (iii) continuation of a policy of
controlling operating costs and their evolution, and (iv) maintenance of
current general market conditions for satellite launch and insurance.

Financial calendar

- February 21, 2008: results for the first-half 2007-2008

The financial calendar is provided for information purposes
only. It is subject to change and will be regularly updated.

About Eutelsat Communications

Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is
the holding company of Eutelsat S.A.. With capacity commercialised on 24
satellites that provide coverage over the entire European continent, as well
as the Middle East, Africa, India and significant parts of Asia and the
Americas, Eutelsat is one of the world's three leading satellite operators in
terms of revenues. At 30 September 2007, Eutelsat's satellites were
broadcasting over 2,730 television channels, of which more than 1,000
channels broadcast via its HOT BIRD(TM) video neighbourhood which serves over
120 million cable and satellite homes in Europe, the Middle East and North
Africa. The Group's satellites also serve a wide range of fixed and mobile
telecommunications services, TV contribution markets, corporate networks, and
broadband markets for Internet Service Providers and for transport, maritime
and in-flight markets. Eutelsat's broadband subsidiary, Skylogic, markets and
operates services through teleports in France and Italy that serve
enterprises, local communities, government agencies and aid organisations in
Europe, Africa, Asia and the Americas. Headquartered in Paris, Eutelsat and
its subsidiaries employ 529 commercial, technical and operational experts
from 27 countries.

http://www.eutelsat.com

For further information

Press

Vanessa O'Connor
Tel: +33-1-53-98-38-88
voconnor@eutelsat.fr

Frederique Gautier
Tel: +33-1-53-98-38-88
fgautier@eutelsat.fr

Investors

Gilles Janvier
Tel: +33-1-53-98-35-30
investors@eutelsat-communications.com

(1) From July 1, 2007 to June 30, 2010.

(2) Compound average growth rate (CAGR)

(3) At a constant exchange rate, revenue growth would have been 8.3%
compared with the first quarter of the previous fiscal year.

(4) Central and Eastern Europe, Russia, Central Asia, Turkey, the Middle
East and Africa.

(5) Orbital positions opened respectively during the first and fourth
quarter 2006-2007.

(6) From July 1, 2007 to June 30, 2010

(7) Compound average growth rate (CAGR)

(8) Fixed Satellite Services

Source: Eutelsat Communications

For further information: Press. Vanessa O'Connor, Tel: +33-1-53-98-38-88, voconnor@eutelsat.fr, Frederique Gautier, Tel: +33-1-53-98-38-88, fgautier@eutelsat.fr; Investors, Gilles Janvier, Tel: +33-1-53-98-35-30, investors@eutelsat-communications.com

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