Eutelsat Communications Reports 2007-2008 Results Exceeding Objectives

Eutelsat Communications Reports 2007-2008 Results Exceeding Objectives

PARIS, July 31/PRNewswire-FirstCall/ --

- Sustained Revenue Growth (up 5.9%) Driven by Strong Dynamic of Video
Applications and Value-Added Services
- 20% Increase of TV Channels Broadcast by Eutelsat's Fleet
- 20% Increase of D-STAR Broadband Terminals
- EBITDA(1) Margin at 79.3%, the Highest in the Fixed Satellite Services
Sector(2)
- Solid Improvement in net cash Flow From Operating Activities: +7.4%,
Representing More Than 64.5% of 2007-2008 Revenues
- Increase in Net Income Group Share : +8.1%
- Proposed Distribution to Shareholders of 0.60 EUR per Share,
Representing a Pay-Out Ratio of 76.5%
- Mid-Term Growth Objectives Revised Upwards

Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL), one
of the world's leading satellite operators, today reported results for the
full year ended June 30, 2008.

Twelve months ended June 30 2007 2008 Change

Key elements of the consolidated income statement

Revenues EURm 829.1 877.8 +5.9%
EBITDA EURm 652.6 695.7 +6.6%
EBITDA margin % 78.7 79.3 +0.6pt
Group share of net income EURm 159.4 172.3 +8.1%
Diluted earnings per share EUR 0.718 0.789 +9.9%

Key elements of the consolidated cash flow statement

Net cash flow from operating activities EURm 527.7 566.6 +7.4%
Capital expenditure EURm 350.1 422.5 +20.7%
Operating free cash flow EURm 177.6 144.1 -18.9%

Key elements of financial structure

Net debt EURm 2,295 2,422 +5.5%
Net debt/EBITDA X 3.52 3.48 -

Key operational metrics

Leased transponders Units 404 468 +15.8%
Fill rate % 80.0% 93.4% NM

Commenting on the full year 2007-2008 results, Giuliano Berretta,
Chairman and CEO of Eutelsat Communications said: "In the 2007-2008 fiscal
year, our Group continued to distinguish itself with the excellence of our
financial, operating and technology achievements and to maintain its position
worldwide as the most profitable operator in the Fixed Satellite Services
sector.

This performance enables us to pursue one of the industry's most
important investment programmes, with seven satellites to launch by end 2010
and also to offer shareholders an attractive remuneration. We will submit for
approval at the next Annual General Assembly a distribution of 0.60 euro per
share, representing a pay-out ratio of 76.5%.

A number of significant contracts underscore our commercial achievements,
notably for capacity at our 9 degrees East video neighbourhood less than one
year after it was opened for business. Customers at this new neighbourhood
can capitalise on the benefits of the audience of our HOT BIRD(TM) position,
which is the market leader worldwide for the number of channels broadcast.
Emerging markets in our Second Continent have also experienced continued
strong growth. Our major video neighbourhoods, which in particular address
these markets, are now broadcasting over 1,500 channels, matching the success
of the HOT BIRD(TM) and EUROBIRD(TM) 1 neighbourhoods in Europe. In total,
our satellites are now broadcasting over 3,120 channels.

We have also strengthened our positioning in Value-Added
Services. Our TOOWAY(TM) service, which is designed to take consumer
satellite broadband to the same level as ADSL in terms of cost and speed,
remains unique from a technology standpoint. The first contracts for
Tooway(TM) from telecommunications operators and regional institutions
strengthen our confidence in our KA-SAT satellite as an engine for growth in
broadband markets from 2010.

We are committed to pursuing our strategy of innovation,
expansion and securing our in-orbit infrastructure in order to further
strengthen our orbital positions. Given the favourable outlook in our
targeted markets of western Europe and our Second Continent, we are raising
our mid-term compound average growth objective to 6% for the 2008-2011
period, and are consequently targeting revenues of more than one billion
euros in fiscal year 2010-2011."

SUSTAINED REVENUE GROWTH

- Growth driven by the dynamic of Video Applications (+10%)
- Market position over our First Continent(3) strengthened by
success of 9 degrees East neighbourhood
- Strong business development in the Second Continent(4)
- Strong growth of Value Added Services (+11%)

Full year 2007-2008 revenues rose 5.9% to 877.8 million euros
compared with the full year 2006-2007 which included 11.4 million euros of
late delivery penalties for HOT BIRD(TM) 7A. Excluding this non-recurring
item, revenue growth was 7.3%(5).

Revenues by business application (in millions of euros)

Change
Twelve months ended June 30 2007 2008 In EUR In %
million
Video Applications 590.4 649.4 +58.9 +10.0%
Data & Value Added Services 159.0 152.5 -6.5 -4.1%
Data Services 127.6 117.8 -9.8 -7.7%
Value Added Services 31.4 34.7 +3.3 +10.6%
Multi-usage 59.1 58.1 -1.0 -1.7%
Others 9.2 17.8 +8.6 NM
Sub-total 817.7 877.8 +60.1 +7.3%
One-off revenues(6) 11.4 - -11.4 NM
Total 829.1 877.8 +48.7 +5.9%

A business portfolio focused on Video Applications

The Group's policy of prioritising the allocation of available
capacity to the most profitable activities has seen the share of Video
Applications in the revenue mix exceed 75%.

Business portfolio (in percentage of revenues)*

Twelve months ended June 30 2007 2008
Video Applications 73.0% 75.5%
Data & Value Added Services 19.7% 17.7%
........ Data Services 15.8% 13.7%
.........Value Added Services 3.9% 4.0%
Multi-usage 7.3% 6.8%
Total 100% 100%

* excluding other revenues and one-off revenues of 20.6 million euros in
2006-2007 and 17.8 million revenues in 2007-2008

Video Applications up 10%

With 3,123 channels and interactive services broadcast through Eutelsat's
fleet at June 30, 2008, up by almost 20% (515 channels) year-on-year, the
Group confirms its leadership for satellite video broadcasting in Extended
Europe(7).

The 58.9 million euro increase in Video Applications, to almost 650
million euros, reflects in particular:

- Commercial success of the new 9 degrees East video neighbourhood and
the leadership of the premium HOT BIRD(TM) video neighbourhood;
- Sustained demand from emerging markets in the Second Continent;
- Take-up of High Definition Television (HDTV).

Position strengthened in key markets of our First Continent

Key highlights of the fiscal year are:

- Immediate commercial success of the new 9 degrees East video
neighbourhood, where EUROBIRD(TM) 9 broadcasts 125 channels one year
after entering into service.

EUROBIRD(TM) 9 was selected by TeleColumbus, Germany's third largest
cable operator, to broadcast a platform of private digital channels to
accelerate the transition of Germany's cable market from analogue to digital.
EUROBIRD(TM) 9 was also been chosen by the new Hungarian HDTV platform,
Hello HD.

- The launch in France, of the BIS pay-TV platform at the 13 degrees East
(HOT BIRD(TM)) and 5 degrees West (ATLANTIC BIRD(TM) 3) neighbourhoods,
and the decision by Orange, a world leader in TV over ADSL, to use the
same neighbourhoods to offer homes the TV component of its triple play
offer (telephone, Internet, TV) where it is not accessible via ADSL.

- Confirmation of the leadership of the HOT BIRD(TM) neighbourhood with
1,101 channels broadcast, and notably its strength in:

- Poland, where the HOT BIRD(TM) audience has risen by 11% over the last
two years to almost 4 million households equipped for Direct-To-Home
(DTH) reception, of a total of almost 4.3 million satellite homes(8).

- Italy, where the HOT BIRD(TM) audience has increased by 18% over the
last two years to 6.1 million households equipped for DTH reception, of
a total of 7.1 million satellite homes8.

- Greece, where NOVA, the country's leading pay-TV platform renewed
during the fiscal year its capacity to 2020 and leased an additional
transponder.

Strong dynamic of satellite TV in the Second Continent

- The 36 degrees East neighbourhood operated with the W4 and SESAT 1
satellites, which serve Russia and Africa, was broadcasting 391
channels at June 30, 2008, up 49% year-on-year.

The Russian and Ukrainian markets were particularly dynamic: the number
of households equipped for DTH reception has grown by over 95% over the last
two years to 4.7 million homes. Over the same period the audience of the 36
degrees East neighbourhood, whose offer continues to increase, more than
doubled to 3.5 million homes, representing over 75% penetration of homes
equipped for DTH reception in both countries8.

- The 7 degrees East neighbourhood, which serves Turkey, also experienced
strong demand: the number of channels broadcast by W3A increased 15%
year-on-year, with the Digiturk platform expanding its HDTV offer to
seven channels at June 30, 2008;

- The 7/8 degrees West neighbourhood which opened at the beginning of
fiscal year 2006-2007 and operates with the ATLANTIC BIRD(TM) 2 and
ATLANTIC BIRD(TM) 4 satellites, broadcasts 253 channels. Contracts
concluded with anchor clients such as NileSat have enabled the Group to
rapidly establish this major video neighbourhood for North Africa and
the Middle East.

Number 1 for HDTV in Extended Europe

- The number of commercial HDTV channels broadcast by Eutelsat's fleet
grew almost threefold year-on-year, to 49 channels at June 30, 2008,
compared with 17 commercial channels at June 30, 2007. HDTV channels
broadcast by Eutelsat's fleet represent almost half of the total number
of 113 HDTV channels broadcasting in Extended Europe at June 30, 2008.
This increase came from across all of the Group's markets. At the end
of fiscal year 2007-2008, Eutelsat's fleet was broadcasting:

- 21 HDTV channels from its premium HOT BIRD(TM) and EUROBIRD(TM) 1 video
neighbourhoods;

- 28 HDTV channels from major video neighbourhoods(9) serving emerging
markets of which seven channels at 7 degrees East (Turkey), five
channels at 36 degrees East (Russia and Africa), five channels at 16
degrees East (central Europe) and eight channels at the new 9 degrees
East neighbourhood (western and central Europe).

Data and Value Added Services: significant headway in broadband markets

Following reallocation to Video Applications, mainly during the previous
fiscal year, of capacity that became available upon the expiry of certain
contracts, revenues from Data Services were down by 9.8 million euros
year-on-year, to 117.8 million euros. However, Data Services revenues
stabilised over the last two quarters owing to activation of new contracts
with telecommunications and business network operators such as Orascom
(Algeria), BT Turkey (Turkey), Siemens (Germany), Telespazio (Italy) and
GulfSat (Middle East).

Value Added Services revenues continued to post sustained growth (up
10.6%) to 34.7 million euros. They were mainly driven by the following
factors:

- Entry into service of 1,478 D-STAR(TM)(10) terminals for enterprises
and institutions, taking the overall installed based to 8,902 activated
terminals at June 30, 2008 (up 20% year-on-year). This increase was
driven by emerging markets, such as the Middle East (up 32% to 2,011
terminals) and Africa (up 13% to 3,255), as well as by Europe (up 21%
to 3,494).

- Commercial launch in seven countries of the TOOWAY(TM)(11) consumer
broadband service for homes located at the edge of terrestrial
networks, notably with the contract concluded with the
telecommunications operator Swisscom for provision of a far-reaching
universal broadband programme for all Swiss households.

- Roll-out of a multimedia portal and Internet access service developed
in partnership with Orange, Cap Gemini and Alstom for passengers on TGV
East high-speed trains operated by France's SNCF.

Multi-usage: new contracts

Revenues from Multi-usage services decreased slightly with the
depreciation of the US dollar against the Euro. At a constant exchange rate
revenue would have risen by 12%, reflecting the conclusion of new capacity
lease contracts and renewal of almost all contracts which expired during
fiscal year 2007-2008.

Other revenues: at an exceptionally high level

Other revenues amounted to 17.8 million euros in fiscal year 2007-2008:
this almost two-fold year-on-year increase is mainly attributable to gains
from Euro/US$ hedging instruments (9.9 million euros), and to the settlement
of a commercial litigation (1.4 million euros) during the first half
2007-2008.

EXCELLENT operating INDICATORS

Nearly 4 years of revenues secured by backlog

Main backlog(12) indicators

As of June 30 2005 2006 2007 2008
Value of contracts (in billion euros) 3.1 4.0 3.7 3.4
Weighted average residual life of 7.0 7.7 7.3 7.4
contracts (in years)
Share of Video Applications 87% 92% 92% 93%

The total backlog and its composition provide the Group with exceptional
long-term visibility on both revenues and operating cash flows: at 3.4
billion euros, it represents almost four times annual revenues. Compared with
one year ago, the slight erosion of backlog reflects a higher average fleet
age, a major part of the backlog being composed of contracts which are
generally concluded or renewed upon entry into service of new satellites for
their entire operational life.

Record 93.4% fill rate

Capacity operating in stable orbit and number of leased transponders

As of June 30 30/06/05 30/06/06 30/06/07 30/06/08
Operational transponders(13) 474 462 505 501
Leased transponders 343 373 404 468
Fill rate (%)(14) 72.3% 80.7% 80.0% 93.4%

The Group's strong commercial performance, which was marked by the lease
of 64 additional transponders at June 30, 2008 compared to June 30, 2007
mainly reflects:

- Commercial take-up of the new 9 degrees East video neighbourhood. This
orbital position, which can be combined with the HOT BIRD(TM)
neighbourhood for channel reception with a single double-feed antenna,
benefits from the strength of the HOT BIRD(TM) neighbourhood which is a
world-leader in terms of channels broadcast;

- Strong growth in the Second Continent, notably in Russia and Africa;

- Leadership of the Group's premium HOT BIRD(TM) and EUROBIRD(TM) 1
neighbourhoods.

The decrease of the number of operational transponders from 505 units at
June 30, 2007, to 501 at June 30, 2008, is due to the technical incident on
the W5 satellite(15) in June 2008, which resulted in the switch-off of four
transponders.

With these factors, the fill rate stood at 93.4% at June 30, 2008.

FURTHER IMPROVEMENT OF PROFITABILITY INDICATORS

- The record EBITDA margin of the sector : 79.3%
- Group share of net income up 8.1%, with improvement of
profitability indicators

Extract from the consolidated income statement (in millions of euros)(16)

Twelve months ended June 30 2007 2008 Variation %
Revenues 829.1 877.8 +5.9%
Operating expenses(17) (176.5) (182.1) +3.1%
EBITDA 652.6 695.7 +6.6%
Depreciation and amortisation(18) (300.8) (300.9) -
Other operating revenues (costs) 10.8 (16.0) NM
Operating income 362.5 378.8 +4.5%
Financial result (108.2) (109.1) +0.9%
Income tax (92.2) (97.5) +5.8%
Income from equity investments 7.9 11.2 +42.3%
Minority interests (10.6) (11.1) +5.0%
Group share of net income 159.4 172.3 +8.1%

Record EBITDA margin at 79.3%

Up 3.1%, operating expenses were contained to 20.7% of revenues owing to
continued tight control over cost structure.

As a result, EBITDA was up 6.6% year-on-year and the EBITDA margin
increased 0.6 percentage points to 79.3%, putting the Group at the highest
level among leading Fixed Satellite Service operators2 for the third
consecutive fiscal year.

Continued increase in operating income, up 4.5%

Stable depreciation and amortisation expenses are due to accounting over
the entire fiscal year of the depreciation allowance for HOT BIRD(TM) 8 which
was offset by the decrease in depreciation expenses related to EUROBIRD(TM) 4
(formerly HOT BIRD(TM) 3), following the impairment booked in the previous
fiscal year.

Other operating revenues (costs)(19) include a 12.0 million
euro impairment of EUROBIRD(TM) 3 and a 7.9 million euro expense
corresponding to the dilution from the exercise of stock options granted by
Eutelsat SA. These items were partly compensated by 3.9 million euros of
revenue corresponding to insurance compensation settlements.

Consequently, operating income is up by 16.3 million euros, to 378.8
million euros.

Continued strong progress for Group share net income: +8.1%

The 12.9 million euro year-on-year increase in Group share net income is
also attributable to:

- Stable financial result despite increased average net debt,
thanks to:

- lower average cost of debt, down from 4.00% in 2006-2007 to
3.87% in 2007-2008 taking into account the effect of interest rates
hedging instruments,

- optimisation of treasury management.

- Strong growth of income from equity investments reflecting
the excellent commercial and operating performance of Hispasat, the
leading satellite operator in Spanish and Portuguese-language markets,
of which Eutelsat owns 27.69%.

STRONG INCREASE IN OPERATING CASH FLOWS

- High level of net cash flow from operating activities: more
than 64% of revenues

- Important investment programme, largely self-financed

- Balance sheet structure maintained with net debt contained
at 3.48 times EBITDA

- Financial debt optimised and hedged

Significant increase in net cash flow from operating activities: +7.4%

With net cash flow from operating activities exceeding 60% of revenues
for the third consecutive fiscal year (64.5% in 2007-2008), Eutelsat
demonstrates the strength of its business model which compares to an
infrastructure business model.

Capital expenditures increased by 20.6% to 422.5 million euros. They were
dedicated (in descending order) to:

- Construction of the HOT BIRD(TM) 9, HOT BIRD(TM) 10, W2M, W2A and W7
satellites which were ordered during previous fiscal years.

- Equity contribution to Solaris Mobile Ltd., the affiliate jointly held
with SES, in charge of operating and marketing the S-band payload on
W2A.

- Initial payments for the KA-SAT and W3B satellites which were ordered
in 2007-2008.

- Financing of corresponding launches and the conclusion of an insurance
package "launch plus one year in orbit" covering the seven satellites
currently in construction.

Up 7.4% to 566.6 million euros, net cash flow from operating activities
largely funded capital expenditures. After settlement of these investments
free cash flow was 144.1 million euros.

Optimised financial debt maintaining balanced financial structure

Leverage ratio

As of June 30 2007 2008
Net debt at the beginning of the year (in million 2,228 2,295
euros)
Net debt at the end of the year (In million euros) 2,295 2,422
Net debt / EBITDA 3.52 3.48

During the fiscal year, the Group increased its ownership of its
privately-held operating subsidiary Eutelsat SA from 95.25% of the share
capital at June 30, 2007, to 95.91% at June 30, 2008. In total, financial
investments amounted to 47.7 million euros.

Despite higher investments, capital expenditure and distribution to the
Group's shareholders (up 12% to almost 140 million euros), the net debt(20)
to EBITDA ratio has decreased to 3.48x, well within the objective of between
3x and 4x.

The financial debt is subject to repayment in fine, with
average residual maturity of 4.2 years(21), and is largely hedged against
interest rate fluctuations. Moreover, under the existing debt agreements, the
Group has additional debt facility of 790 million euros.

ACTIVE INVESTMENT POLICY

Eutelsat has pursued its investment programme which is focused on further
securing certain key neighbourhoods, expanding the capacity of its fleet and
developing innovative services, notably for broadband markets.

During the fiscal year the Group ordered two satellites in addition to
the five satellites which were already in construction:

- W3B: to be copositioned at 7 degrees East with W3A, this 56 transponder
Ku-band satellite will provide sparing capacity and increase the number
of transponders at this neighbourhood.

- KA-SAT: Europe's first Ka-band multi-spotbeam satellite, this
high-power satellite is designed to support large-scale deployment of
Eutelsat's TOOWAY(TM) service which was launched at the beginning of
the 2007-2008 fiscal year using four Ka-band transponders on the HOT
BIRD(TM) 6 satellite. KA-SAT will be able to deliver satellite
broadband services, which are comparable to ADSL in terms of speed and
cost, to more than one million households across Europe and the
Mediterranean Basin located at the edge of terrestrial networks.

ATTRACTIVE SHAREHOLDER REMUNERATION

On the July 30, 2008 Board of Directors decided to submit to the approval
of shareholders the distribution of 0.60 euro per share to be taken from the
"Share Premium", compared with 0.58 euro for fiscal year 2006-2007,
representing a pay-out ratio of 76.5%.

Going forward, Eutelsat Communications policy is to distribute to its
shareholders between 50% and 75% of Group share of net income.

MARKET TRENDS IN EXTENDED EUROPE: more than 5% GROWTH

The demand for capacity for satellite-based services in Extended Europe
is expected to post a compound average growth rate of 5.1%(22) during the
period 2007-2012. Sustained demand across the Group's markets will be driven
mainly by:

- Solid growth of Video Applications in the Second Continent, where
Eutelsat is already strongly positioned, with 2007-2012 compound average
growth rate estimated to exceed 6.5%;

- Progressive development of HDTV, to more than 480 channels in 2012;

- Continuous demand for satellite capacity for corporate networks and
broadband access in Extended Europe.

These forecasts lend further credibility to the Group's strategy to
target the most profitable services: Video Applications and Value-Added
Services.

GROUP PERSPECTIVES:
objective of revenues of OVER ONE BILLION EUROS FOR 2010-2011

Given its perspectives and its satellite launch schedule, the Group
revises upward its three-year revenue objective and now targets revenues
above one billion euros in fiscal year 2010-2011(23).

This objective corresponds to a three-year (2008-2009 to 2010-2011)
compound average growth rate of 6%(24), accelerating from 2009-2010 onwards.

The Group maintains its EBITDA margin objective above 77% over this
period.

During the period, the Group expects to launch the seven satellites
currently in construction. Together with continued dynamic management of its
in-orbit resources, this active investment policy is expected to bring the
number of operational transponders to 664 at June 30, 2011 (excluding KA-SAT
and S-band capacity). Over the same period, the Group also expects to
initiate investments aiming at replacing four satellites launched in the
period 1998-2000.

The Group therefore confirms an average annual capital expenditure
objective of 450 million euros through 2008-2011.

2008-2009 objectives

At the end of its 2007-2008 fiscal year Eutelsat is ahead of the
three-year objectives disclosed in November 2007. As a result of this
performance, the fill rate of the fleet has reached a record level of more
than 93% at June 30, 2008.

Given the progressive entry into service of additional satellite capacity
expected during the second half of 2008-2009, the Group is confident of
exceeding 900 million euros of turnover for fiscal year 2008-2009.

Finally, the Group intends to maintain its profitability at the highest
level of its sector and targets an EBITDA margin above 78% for 2008-2009.

Consolidated accounts are available at http://www.eutelsat.com

Analysts and Investors Conference call

Eutelsat Communications will hold a conference call in English for
analysts and investors to present its financial results for the full year
2007-2008. The call will start on July 31 at 3pm Paris time (New York: 9am,
London: 2pm). The call-in numbers are:

01-70-99-42-95 (from France)
+44-20-7806-1966 (from Europe)
+1-718-354-1390 (from US)

A replay will be available from July 31 at 7pm to August 7, midnight, by
dialling:

01-71-23-02-48 (from France)
+44-207-806-1970 (from Europe)
+1-718-354-1112 (from US)
Access code: 7493134#

A presentation will be available on the Group's website
http://www.eutelsat.com from 8am (Paris time) on July 31, 2008.

Financial calendar

- November 4, 2008: financial report for quarter ended
September 30, 2008

- November 6, 2008: shareholders general meeting.

The above 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 June 2008, Eutelsat's satellites were broadcasting
more than 3,120 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 (fiscal year 2006-2007)

Three months ended
In millions of euros 30/09/2006 31/12/2006 31/03/2007 30/06/2007
Video Applications 142.8 147.0 148.9 151.8
Data & Value Added 40.8 40.8 39.2 38.2
Services
Multi-usage 14.7 14.8 15.1 14.6
Other 1.3 1.9 2.5 3.6
Sub-total 199.5 204.4 205.7 208.1
One-off revenues - 11.4 - -
Total 199.5 215.8 205.7 208.1

Quarterly revenues by business application (fiscal year 2007-2008)

Three months ended
In millions of euros 30/09/2007 31/12/2007 31/03/2008 30/06/2008
Video Applications 158.1 161.2 164.9 165.2
Data & Value Added 37.2 37.7 40.0 37.5
Services
Multi-usage 14.5 15.0 14.2 14.3
Other 2.0 3.6 4.8 7.4
Sub-total 211.9 217.5 223.9 224.4
One-off revenues - - - -
Total 211.9 217.5 223.9 224.4

Annual revenues by business application

Twelve months ended
In millions of euros 30/06/2005 30/06/2006 30/06/2007 30/06/2008
(pro forma)
Video Applications 511.3 528.6 590.4 649.4
Data & Value Added Services 161.7 169.1 159.0 152.5
Data Services 137.3 139.2 127.6 117.8
Value Added Services 24.4 29.9 31.4 34.7
Multi-usage 60.8 69.7 59.1 58.1
Other 5.9 6.3 9.2 17.8
Sub-total 739.7 773.7 817.7 877.8
One-off revenues 10.7 17.4 11.4 -
Total 750.4 791.1 829.1 877.8

Change in net debt (in millions of euros)

Twelve months ended June 30 2007 2008 Variation
(%)
Net cash flow from operating activities 527.7 566.6 +7.4%
Capital expenditure (350.1) (422.5) +20.7%
Operating free cash flow(25) 177.6 144.1 -18.9%
Interest and other fees paid, net (82.6) (87.3) +5.7%
Acquisition of minority interests (19.9) (47.7) +139.7%
Capital increase 2.7 0.1 NS
Distributions to shareholders (including (124.3) (138.9) +11.8%
minority interests)
Other(26) (20.4) 3.2 NS
Decrease (increase) in net debt (66.9) (126.5) NS

Number of channels broadcast by Eutelsat's fleet

Change over 1 year
As of June 30 2007 2008 In units In %
Premium video neighbourhoods(27) 1,381 1,422 +41 +3.0%
Major video neighbourhoods(28) 1,113 1,535 +422 +37.9%
Other orbital positions(29) 114 166 +52 +45.6%
Total 2,608 3,123 +515 +19.7%

Satellite launch schedule

Satellite Estimated launch period Transponders
HOT BIRD(TM) 9 October 2008 64 Ku
W2M November 2008 26 Ku
HOT BIRD(TM) 10 Jan.-Mar. 2009 64 Ku
W2A Jan.-Mar. 2009 46 Ku / 10 C / S-band
W7 Jun.-Aug. 2009 70 Ku
KA-SAT Mid-2010 > 80 spotbeams Ka
W3B Mid-2010 53 Ku / 3 Ka

Note: New satellites generally enter into service one to two months after
launch date.

---------------------------------

(1) EBITDA is defined as operating income before depreciation,
amortisation and other operating income/charges (impairment charges, dilution
profits (losses), insurance compensations, etc.).

(2) Eutelsat Communications, Intelsat, SES, Telesat

(3) Western Europe and Poland

(4) Central and eastern Europe, Russia, Middle East, North Africa and
Sub-Saharan Africa

(5) At a constant exchange rate and excluding non-recurring revenues
growth was 9.5%

(6) Non-recurring revenues comprise late delivery penalties and outage
penalties

(7) Europe, Russia, Middle East, Africa

(8) Source : Eutelsat 2008 survey of satellite and cable homes.

(9) Major neighbourhoods are: 7/8 degrees West (Middle East, North
Africa), 5 degrees West (France, North Africa and Sub-Saharan Africa), 7
degrees West (Turkey), 9 degrees East (Western and Central Europe), 16
degrees East (Eastern Europe and Balkans), 25.5 degrees East (Middle East),
36 degrees East (Russia, Africa )

(10) The D- STAR service provides Internet access and Virtual Private
Networks to enterprises and institutions in regions with inexistent or
unreliable terrestrial broadband infrastructure.

(11) The TOOWAY(TM) service, both in Ka-band and Ku-band, provides
broadband access to households located at the edge of terrestrial networks.

(12) Backlog represents future revenues from capacity lease agreements
(including contracts for satellites yet to be delivered). These capacity
lease agreements can be for the entire operational life of the satellites.

(13) Number of Eutelsat's fleet transponders in stable orbit.

(14) The utilisation rate is based on Eutelsat's fleet capacity in stable
orbit, excluding capacity on Telecom 2D and Telecom 2C which are both in
inclined orbit.

(15) See press release dated June 17, 2008.

(16) For more detail, please refer to Group consolidated
accounts at http://www.eutelsat.com.

(17) Operating expenses are defined as the sum of cost of
operations and of sales & administrative expenses.

(18) Comprises amortisation expense of 44.45 million euros corresponding
to the intangible asset "Customer Contracts and Relationships" identified
during the acquisition of Eutelsat S.A. by Eutelsat Communications.

(19) In the fiscal year ended on June 30, 2007, other operating revenues
& costs mainly included 37.5 million euros income related to insurance
compensations and a 25.0 million euros impairment of EUROBIRD(TM) 4 following
a technical incident.

(20) Net debt includes all bank debt and all liabilities from long-term
lease agreements, less cash and cash equivalents and marketable securities
(net of bank credit balances).

(21) The debt is made of two tranches which are repayable in November
2011 and June 2013, respectively.

(22) Source Euroconsult

(23) Given that Solaris Mobile Ltd, the 50% owned subsidiary
in charge of operating and marketing the S-band payload on W2A, is
consolidated under the equity method of accounting.

(24) Based on 2007-2008 revenues excluding revenues
from EUR/US$ hedging gains (9.9 million euros).

(25) Operating free cash flow is defined as net cash flow from operating
activities less acquisition of satellites and other property, plant and
equipment, net of disposals.

(26) In 2007-2008, includes 18 million euros of proceeds from exercise of
stock options by minority shareholders of Eutelsat SA and 1.5 million euros
of dividends received from Hispasat in 2007 partly offset by the repayments
in respect of performance incentives.

(27) HOT BIRD(TM) at 13 degrees East (Europe) and EUROBIRD(TM) 1 at 28.5
degrees East (United Kingdom & Ireland).

(28) 7/8 degrees West (Middle East, North Africa), 5 degrees West
(France, North Africa and Sub-Saharan Africa), 7 degrees East (Turkey), 9
degrees East (Western and Central Europe), 16 degrees East (Eastern Europe
and Balkans), 25.5 degrees East (Middle East) and 36 degrees East (Russia,
Africa).

(29) Used for video contributions and professional video networks.

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

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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