Eutelsat Communications Reports 8.9% Revenue Increase for Third Quarter 2007-2008

Eutelsat Communications Reports 8.9% Revenue Increase for Third Quarter 2007-2008

PARIS, May 15/PRNewswire-FirstCall/ --

- Quarterly Financial Information

Revenue Objective For Current Fiscal Year Revised Upwards

- Strong revenue increase compared to third quarter of the previous
fiscal year driven by continued growth of Video Applications and Value
Added Services

- Upward revision of revenue objective for fiscal year 2007-2008 to
860-870 million euros, compared to previous objective of 850-860
million euros

Eutelsat Communications (ISIN: FR0010221234 -
Euronext Paris: ETL), one of the world's leading satellite operators, today
reported financial information for the third quarter ended March 31, 2008.

Revenue by application

3rd quarter Change 9 months ended Change
ended March 31 March 31

In million euros 2007 2008 in % 2007 2008 in %

Video Applications 148.8 164.9 +10.8% 438.6 484.2 +10.4%
Data & Value Added 39.2 40.0 +1.9% 120.8 114.9 -4.8%
Services
Of which Value Added 8.5 9.7 +13.4% 23.5 26.6 +13.5%
Services
Multi-usage 15.1 14.2 -5.6% 44.5 43.8 -1.7%
Other 2.5 4.8 5.7 10.4
Sub-total 205.7 223.9 +8.9% 609.6 653.3 +7.2%(1)
Non-recurring revenues - - 11.4 -
Total 205.7 223.9 +8.9(2)% 621.0 653.3 +5.2%

Commenting on the Group's results, Giuliano Berretta, Chairman and Chief
Executive Officer of Eutelsat Communications said:

"Our performance continues to perfectly reflect a strategy
combining growth, visibility and innovation, positioning us in the most
attractive markets. The strong dynamic of Video Applications is reconfirmed
by the almost 20% increase in the number of television channels broadcast by
our satellites over one year. Video activity has also further consolidated
our strong visibility on revenues, illustrated by long-term contracts that
include the recent renewal to 2020 of capacity at our HOT BIRD(TM) position
for NOVA, the leading pay-TV platform in Greece. Further examples of new
business underscore the increasing role of our satellites for distributing
digital services: following the launch at the end of 2007 of the BIS TV
platform from our HOT BIRD(TM) and ATLANTIC BIRD(TM) 3 neighbourhoods, our
activity in France has been further strengthened by the announcement last
month by Orange of its selection of our satellites to deliver the TV
component of its triple play offer in cases where it is not accessible via
ADSL. The contract concluded in Germany with Tele Columbus for delivery of
digital channels to cable networks increases our participation in Europe's
leading cable market, while the selection by Swisscom of our new TOOWAY(TM)
service to ensure universal broadband access for homes throughout Switzerland
is a positive signal of the demand for satellite broadband to close the
digital divide.

Our strong increase in revenues leads us to revise upwards our
revenue objective for the current fiscal year to 860-870 million euros".

Q3 2007-2008 highlights

Video Applications (164.9 million euros) continue to develop rapidly.
Strong year-on-year growth of 10.8% mainly reflects:

- The launch since March 2007 of 472 new channels (+19%), taking to 2,977
the total number of channels broadcast by the Group's satellites at
March 31, 2008;

- The markets of Russia, Africa, Turkey and the Middle East account for
almost 60% of new channels, notably as a consequence of major contracts
signed since March 2007 with the Russian operator Intersputnik, as well
as with the pay-TV operators Entertainment Highway and Gateway for
Africa, and with CanalSat Réunion for Indian Ocean islands;

- The take-up of the EUROBIRD(TM) 9 satellite which entered into service
at 9 degrees East at the end of the last fiscal year, and which was
broadcasting 78 channels at March 31, 2008. EUROBIRD(TM) 9 was selected
during the third quarter by Tele Colombus, one of the three leading
cable operators in Germany for the upcoming launch of an offer of
digital channels within the framework of the transition of German cable
from analogue to digital;

- Finally, the Group more than doubled the number of HDTV channels
broadcast by its satellites over one year, with 35 HDTV channels
broadcasting at March 31, 2008. New HDTV channels launched in the third
quarter include Rush HD for the UK, FilmBox HD and HBO Polska for Poland
and Movie Max HD for Turkey.

The development of Data and Value Added Services (40.0 million euros,
+1.9%) is attributed to factors that include:

- Strong increase of 13.4% of Value Added Services to 9.7 million euros
at March 31, 2008. This growth is principally fuelled by continued
deployment of D-STAR broadband access services in Africa and the Middle
East. The third quarter was also marked by delivery of new equipment to
test broadband services on TGV Est high-speed trains within the scope
of the contract with France's SNCF. Value-Added Services also benefited
from the deployment by Swisscom, the leading telecom operator in
Switzerland, of the first terminals for Eutelsat's TOOWAYTM service to
ensure universal broadband access to homes throughout Switzerland;

- The quasi stability of Data Services (down 0.4 million euros
year-on-year). This activity included the activation of new contracts
with the telecom and corporate network operators Telespazio (Italy),
Teles (Germany), Orascom (Algeria) and GulfSat (Middle East).

Revenue from Multi-usage (14.2 million euros) is slightly down
year-on-year due to the depreciation of the US dollar versus the euro. At a
constant exchange rate, year-on-year revenue growth would have been 9.4%.

Other Revenues of 4.8 million euros mainly reflect the impact on revenue
(+3.7 millions euros) of the currency hedging policy put in place during the
preceding fiscal year.

Year-to-Date 2007-2008 Revenue Highlights

Revenue for the first nine months of the 2007-2008 fiscal year amounts to
653.3 million euros, up 5.2% year-on-year. Excluding non-recurring revenue
and at a constant exchange rate, revenue would have risen by 9.5%.

This performance reflects:

- Expansion of in-orbit resources during the previous fiscal year, with
the opening of three new neighbourhoods: 7 degrees West (ATLANTIC
BIRD(TM) 4), 4 degrees East (EUROBIRD(TM) 4) and 9 degrees East
(EUROBIRD(TM) 9), bringing 43 additional operational transponders
during the current fiscal year(3);

- Strong momentum of Video Applications, illustrated by the continued
increase of channels broadcast by the Group's satellites for DTH
(Direct-to-Home) reception and for feeding cable and DTT networks;

- Continued take-up of Value Added Services, notably sustained by
deployment of the D-STAR service, by mobile broadband services for
transport markets and also by the launch of the first offers of the
TOOWAY(TM) satellite consumer broadband service.

Fiscal Year 2007-2008 Financial Situation and Objectives

In view of its performance, Eutelsat Communications is revising upwards
its revenue objective for the current fiscal year: the Group now targets
revenue between 860 and 870 million euros compared with the previous
objective of 850 to 860 million euros.

The Group maintains its EBITDA margin objective for the current fiscal
year at above 78%, confirming its strong financial situation.

Recent Significant Events:

Insurance Policy Signed for the Launch of all Satellites in Procurement

In April 2008, Eutelsat concluded one of the largest insurance packages
by a Fixed Satellite Services operator. The highly favourable conditions of
this contract, which covers insurance "launch plus one year in orbit" of the
Group's seven satellites currently in construction equips Eutelsat with the
possibility to use the full range of launch vehicles available in the market.
It delivers the Group maximum flexibility in the deployment of its in-orbit
expansion programme over the coming three years.

Financial calendar

Full year results: July 31, 2008

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 31 March 2008, Eutelsat's satellites were broadcasting
almost 3,000 television channels and 1,100 radio stations. More than 1,100
channels broadcast via its HOT BIRD(TM) video neighbourhood at 13 degrees
East 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 538 commercial,
technical and operational experts from 27 countries.

http://www.eutelsat.com

Appendix

Quarterly revenues by business application

2006-2007 2007-2008
In million euros Q1 Q2 Q3 Q4 Q1 Q2 Q3

Video Applications 142.8 147.0 148.8 151.8 158.1 161.2 164.9
Data & Value Added Services 40.8 40.8 39.2 38.2 37.3 37.7 40.0
Of which Value Added Services 7.4 7.5 8.5 7.9 8.2 8.7 9.7
Multi-usage 14.7 14.8 15.1 14.6 14.5 15.0 14.2
Others 1.3 1.9 2.5 3.6 2.0 3.6 4.8
Sub-total 199.5 204.4 205.7 208.1 211.9 217.5 223.9
Non-recurring revenues - 11.4 - - - - -
Total 199.5 215.8 205.7 208.1 211.9 217.5 223.9

(1) At a constant exchange rate and excluding non-recurring revenues,
year-to-date revenue growth would have been 9.5% compared with the same
period of the previous fiscal year.

(2) At a constant exchange rate, revenue growth would have been 11.2%
compared with the third quarter of the previous fiscal year.

(3) The Group had 505 operational transponders at March 31, 2008

For further information

Press

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

Frédérique 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

Source: Eutelsat Communications

For further information: Press: Vanessa O'Connor, Tel: +33-1-53-98-38-88, voconnor@eutelsat.fr; Frédérique 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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