APT Satellite signs transponder lease agreement

to fuel telecom business growth

Asia’s leading satellite transponder service provider, APT Satellite Holdings Limited (“APT”, or “the Company”, Stock Code: 1045 or ATS) today announced that a lease agreement was entered into, on 26^th September, 2000, between APT Satellite Co., Ltd. ("APT (HK)"), a wholly-owned subsidiary of the Company, as lessor, and APT Satellite Telecommunications Limited ("APT Telecom"), a 55% owned subsidiary of the Company in relation to the leasing of half of a C-band transponder's capacity of APSTAR-I, one of the satellites of the Company, for a period of one year for an aggregate lease price of US$700,000 commencing from 1st September, 2000.

Pursuant to the lease agreement, APT HK, at its cost and expense, shall provide for all the necessary tracking, telemetry and command services (commonly known as T.T. & C. services) as shall be necessary to maintain the transponder services on APSTAR-I. Upon the expiry of the initial term of one year, APT Telecom may exercise an option to extend the term of the Lease with the terms and conditions for such extended period (but in any event for a total term not more than 3 years and 6 months) no less favourable to the terms and conditions of the Lease Agreement, except that the annual rental shall be subject to an increase of up to five (5) per cent; provided that such a option shall be exercised in writing at least six months prior to expiry of the Initial Term.

The aggregate lease price was arrived at after arm's length negotiation between the parties with reference to other leasing arrangements between the Company and other independent third parties.

As set out in the Company's announcement of 21st June, 2000, through the operation of APT Telecom, the Company further expand its scope of business from transponder leasing to telecommunication. As APT Telecom requires to make use of the transponder capacity of a satellite to further its telecommunication business and APT (HK) is engaged in transponder leasing activities in its ordinary and usual course of business, the leasing arrangement is entered into for the mutual benefit of both subsidiaries of the Company.

APSTAR-I

APSTAR-I, a Hughes HS-376 satellite, is the first in-orbit satellite of the Company which was successfully launched on 21st July, 1994. It has had very broad footprints covering over Northern Asia and South-east Asia.

APT Telecom

APT Telecom is a joint venture between the Group and SingaSat Private Limited, a wholly-owned subsidiary of Singapore Telecommunications Limited which is principally involved in the business of external satellite-based fixed telecommunication network services including very small aperture terminal (VSAT), facility management, Internet point of presence gateway and wholesale telecoms services under the external satellite-based fixed telecommunication network service licence, and facility management.

Business of the Company and its subsidiaries

The Company and its subsidiaries are engaged in the provision of satellite transponder services for the international and Asia-Pacific broadcasting and telecommunications sectors.

Business of SingaSat and its Parent

SingaSat is a wholly-owned subsidiary of Singapore Telecommunications Limited ("SingTel"), which is incorporated in Singapore and is principally engaged in the operation and provision of telecommunication systems and services and investment holding.

Listed on the Hong Kong and New York stock exchanges, APT Satellite Holdings Limited is a leading provider of satellite transponder services for the broadcasting and telecommunications sectors in Asia Pacific. Currently, it operates three in-orbit geo-stationary satellites with a total capacity of 76 C-band transponders and 16 Ku-band transponders. Other corporate information on APT Satellite can be found on its web site: http://www.apstar.com/.

Issued by: APT Satellite Holdings Limited

Contact: Brian Lo

Tel: (852) 29188013 Fax: (852) 2522 0419

Email: aptir@apstar.com

Through: Keith Statham Associates PR (member of e2-Capital Group)

Tel: 28108108 Fax: 2905 1582

Contact: Elaine Chan (elainec@ksa.com.hk ) Tel: 28010023