Media Release - 2 December 1999

Media Release

2 December 1999

Supplemental Agreement

Loral Asia and APT (HK) have agreed that the payment period under the Lease Agreement announced on 18th August, 1999 in respect of the leasing by APT(HK) to Loral Asia of substantially all of the satellite transponder capacity on APSTAR-IIR be shortened from the original 4 years to 6 months.

Further to the announcements dated 18th August, 1999 and 8th September, 1999 and the circular of the Company dated 20th September, 1999 (the "Circular"), the board of directors of the Company would like to announce that APT(HK) entered into a supplemental agreement with Loral Asia on 2nd December, 1999 (U.S. time) to shorten the payment term under the Lease Agreement. Terms used in this Announcement shall have the same meanings as set out in the Circular.

Supplemental Agreement dated 2nd December, 1999

Parties: APT(HK)

Loral Asia

Major Term: The lease price under the Lease Agreement of about US$298 million (equivalent to about HK$2,310 million at an exchange rate of HK$7.75:US$1.00) be reduced to about US$273 million (equivalent to about HK$2,115 million at an exchange rate of HK$7.75:US$1.00) and paid or payable by three instalments in the following manner:-

(a) about US$78.4 million (equivalent to about HK$607.9 million) on the Closing Date of 28th September, 1999;

(b) about US$12.5 million (equivalent to about HK$96.9 million) on December 31, 1999; and

(c) about US$181.9 million (equivalent to about HK$1,409.9 million) on March 27, 2000.

Save for the above amendments and other related corresponding changes, the terms of the Lease Agreement remain unchanged.

The Board is of the view that the shortening of the payment period of the lease price is beneficial to and in the interest of the Company after taking into account the recent trend of interest rates. The new outstanding lease price is arrived at after applying a discount rate of 7 per cent. p.a. to the original outstanding lease price. As set out in the Circular, the Board intends to allocate capital resources in developing additional high-power satellites and expand into other satellite- related businesses.

By order of the Board

Brian Lo

Company Secretary

Hong Kong, 3rd December, 1999

US dollars figures are converted to HK dollars figure at the exchange rate of US$1.00:HK$7.75

END

For inquiries:

Contact: Brian LO, Asst to President/Company Secretary

Tel: (852) 29188013 Fax: (852) 25220419

Email: aptir@apstar.com

Website: www.apstar.com

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Parties:	APT(HK)
	Loral Asia

Major Term:	The lease price under the Lease Agreement of about US$298 million (equivalent to about HK$2,310 million at an exchange rate of HK$7.75:US$1.00) be reduced to about US$273 million (equivalent to about HK$2,115 million at an exchange rate of HK$7.75:US$1.00) and paid or payable by three instalments in the following manner:-
	(a) about US$78.4 million (equivalent to about HK$607.9 million) on the Closing Date of 28th September, 1999;
	(b) about US$12.5 million (equivalent to about HK$96.9 million) on December 31, 1999; and
	(c) about US$181.9 million (equivalent to about HK$1,409.9 million) on March 27, 2000.