Hong Kong, April 10, 2006 -- APT Satellite Holdings Limited (together with its subsidiaries known as "the Group") (HKEx stock code: 1045; NYSE stock code: ATS), a provider of high-quality satellite transponder, telecommunications and broadcasting services in Asia Pacific, today announced its audited annual results for the year ended 31 December 2005 (the "Period").

The Group's turnover amounted to HK$336,512,000 for the year ended 31 December 2005 (2004: HK$277 ,260,000 ). Consolidated net loss attributable to shareholders amounted to HK$135,564,000 (2004 (restated) : HK$ 59,957,000 ). Basic loss per share was HK$32.80 cents (2004 (restated) : HK$ 14.51 cents). The Board of the Company has resolved not to declare any payment of final dividend for the financial year ended 31 December 2005 .

Mr. Ni Yifeng, Executive Director and President of the Group, said, "It was another challenging year for our operation in 2005 as the competition in the transponder market in the region remained fierce and our revenue was once again suppressed. However, the commencement of operation of APSTAR VI in June 2005 did help to improve the Group's competitive edges in the market, and significant growth in the utilization rates of APSTAR V and APSTAR VI to 68.5% and 45% respectively during the Period was a solid proof that both of them have been well received by the market."

During the Period, the Group's in-orbit satellites, together with their corresponding telemetry, tracking and control systems, have been operating under normal condition. APSTAR VI, the newest satellite among all, was launched on 12 April 2005 . Replacing APSTAR IA with an expected operation life of over 15 years, the high-power APSTAR VI is equipped with 38 C-band transponders and 12 Ku-band transponders, of which its C-band transponders cover China, India, Southeast Asia, Australia, South Pacific Islands, Guam and Hawaii, while its Ku-band transponders serve mainly the China market. Customers originally using the services of APSTAR IA have been successfully migrated to APSTAR VI during the Period, and with a sound customer base of CCTV and other renowned Chinese broadcasters, the Group expects APSTAR VI to become one of the most popular multilingual and multicultural satellite platforms in the Asia Pacific region.

Launched in June 2004, APSTAR V is another high-power satellite of the Group , replacing the existing APSTAR I. Its 38 C-band transponders cover China, India, Southeast Asia, Australia, South Pacific Islands, Guam and Hawaii, while its 16 Ku-band transponders cover China, India, Taiwan and Hong Kong. APSTAR V supports various transponder services including DTH broadcasting, Internet and VSAT services within Asia while providing an inter-connection to the United States .

Mr. Ni said, "The commencement of operations of APSTAR V and APSTAR VI have effectively strengthened our competitive edges in the fierce transponder services market by providing the latest advanced and comprehensive satellite communication and broadcasting services to our customers. T his enabl es the Group to secure new customers and increase transponder utilizations in both the China and overseas markets."

Meanwhile, the Group has endeavoured to extend its market reach. APT Satellite Company Limited, a subsidiary of the Group, signed a strategic cooperation agreement with Intelsat Limited ("Intelsat") in December 2005. The agreement allows Intelsat as well as its media and corporate data customers to access the Asia Pacific market through the Group's satellites of APSTAR V and APSTAR VI, while the Group will have access to Intelsat's fleet of 28 satellites, thereby not only expanding the Group's reach but also giving it the ability to seamlessly carry its customers' traffi