Media Release

Clarification on Press Articles in relation to
Dividend Payment 

The board of directors (the "Board") of APT Satellite Holdings Limited (the "Company") notes that there were various press articles today in relation to the possibility of a declaration of dividend by the Company out of the profits realised by the Company from the lease agreement with Loral Asia Pacific Satellite (HK) Limited as announced on 18th August, 1999.

The Board would like to clarify that the Company, in replying to enquiries raised by the reporters in respect of whether a dividend will be declared as a result of the profits arising out of the lease agreement, did not state that any dividend would or would not be declared nor did the Company state the amount or the date of payment. It merely informed the press that it may consider declaring a dividend subject to the approval by the Board after taking into consideration, inter alia, the future expansion plan and funding requirement of the Company. Return of capital to shareholders of the Company by way of dividend has always been an agenda item of board meetings of the Company when the results of the group are considered.

The lease price to be received will strengthen the Company's financial position and the Company will be able to re-allocate its efforts and capital resources in developing additional high-power satellites. There is no change to the intended use of proceeds in respect of the lease agreement as set out in the circular of the Company dated 20th September, 1999.

By order of the Board

Brian Lo

Company Secretary

Hong Kong, 8th October, 1999

For any enquiries, please contact

Brian LO, aptir@apstar.com 

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