The contingency plan now being implemented includes the continued availability of U.S. satellite services on the current Galaxy IX and SBS 5 satellites, the upcoming launches of additional U.S. satellites starting early next year and the construction of a Galaxy X replacement satellite for launch in early 2000.

Galaxy X, a Hughes-built HS 601 HP spacecraft with 24 C-band and 24 Ku-band transponders, was destroyed during a Delta III rocket failure here. Galaxy X was to provide video and telecommunications services throughout the United States. The satellite and launch were fully insured. Boeing Co., which provides Delta launch services, has announced that an investigation into the cause of the Delta III launch failure would begin immediately.

"PanAmSat is a resilient company with a proven track record for providing service to its customers in the United States and around the world," said Frederick A. Landman, PanAmSat's president and chief executive officer. "Our breadth of resources over the United States enables us to maintain service for most Galaxy X customers, many of whom are currently on Galaxy IX and SBS 5. In addition, PanAmSat has implemented a comprehensive satellite strategy to provide expanded and backup capacity in space and on the ground. We already plan to launch three additional satellites for the U.S. market by late 1999. We will now also proceed with the immediate procurement of a fourth U.S. satellite, the Galaxy X replacement, for launch in approximately 18 months."

PanAmSat had several sales-type lease agreements on Galaxy X, which would have generated significant revenue in 1998. A substantial portion of these revenues will be deferred into subsequent years under existing contracts that will be served on current capacity.

PanAmSat's four upcoming satellites for the United States are Galaxy XI, Galaxy III-C, Galaxy IV-R and the Galaxy X replacement. The first to be launched will be Galaxy XI, which will deliver 64 transponders for the U.S. market upon launch during the 1st quarter of 1999. Galaxy XI will be PanAmSat's largest satellite ever launched.

Galaxy X was intended to occupy the orbital location of 123 degrees West Longitude, thereby facilitating the shift of Galaxy IX and SBS 5 customers to Galaxy X and the relocation of the Galaxy IX and SBS 5 satellites to new orbital locations. PanAmSat now plans to maintain Galaxy IX and SBS 5 at 123 degrees until the Galaxy X replacement is launched in early 2000.

Galaxy IX, a Hughes-built HS 376 spacecraft, was launched in May 1996 and contains 24 C-band transponders. SBS 5, also an HS 376 spacecraft, was launched in September 1988 and contains 14 Ku-band transponders.

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Satellite Launch To Boost DTH In India
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