Media Release

2 June 2000

Singtel increases stake in APT Satellite,
Expands to satellite and telecommunication network services

APT Satellite Holdings Limited (the "Company") (stock code: 1045 & ATS) hereby announces that SingaSat Pte. Limited ("SingaSat") acquired one-seventh interest in APT Satellite International Co. Ltd. ("APT International") (the "Acquisition") from China Travel Fok Tai (Macau) Limited ("China Travel"). The said interest is equivalent to 30,600,000 shares of the Company and the consideration of each share is HK$7.55 or in aggregate approximately HK$231 million.

APT International is currently holding 51% of the issued share capital of the Company. Both China Travel and SingaSat are among the six principal shareholders of APT International prior to the Acquisition. Upon completion of the Acquisition, SingaSat increased its shareholding in APT International from one-seventh interest to two-seventh interest and China Travel no longer has any shareholding in APT International. SingaSat will appoint additional directors to the Board of the Company in accordance with the percentage of interests in APT International and the Company.

The Board believes that the change in the shareholding of APT International as a result of the Acquisition will be very beneficial to the operations of the Company. The increase of SingaSat's interest in the Company will further strengthen the shareholders¡¦ structure of the Company and provide substantial support in future business development. Further, the Company is currently in the process to expand its scope of business from its existing transponder leasing to include satellite telecommunication network services. The Board considers that the increase of SingaSat¡¦s interest in the Company will also help reinforce the Company¡¦s competitiveness in satellite telecommunication and telecom network services.

The five principal shareholders of APT Satellite Holdings Limited after the transaction are: (a) China Telecommunications Broadcast Satellite Corporation; (b) China Aerospace Corporation; (c) CASIL Satellite Holdings Limited; (d) SingaSat Private Ltd. and (e) Kwang Hua Development and Investment Limited. They jointly hold 100% interests of APT International, which is currently holding 51% of the issued share capital of the Company.

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. The turnover and profit after tax of the Company for the year ended of 31 December 1999 were HK$482 million and HK$ 375 million respectively. Other corporate information on APT Satellite can be found on its web site: http://www.apstar.com.

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. The turnover of Singtel for the year ended of March 2000 was approximately US$2.86 billion (equivalent to approximately HK$22.308 billion at the exchange rate of HK$7.8:US$1) and the market capitalisation was approximately US$22 billion (equivalent to approximately HK$171.6 billion at the exchange rate of HK$7.8:US$1).

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