Media Release

Year 2000 Readiness Disclosure

APT Satellite Holdings Limited (the "Company") had set a target to be fully Year 2000 compliant by 30th September, 1999. This notice is to serve the purpose of informing the Company's shareholders and the public the outstanding exposure of the Company to the Year 2000 Problem; an assessment of business risks; the update works for Year 2000 compliant and the contingency plan as the Company has not yet met the target aforesaid.

As required by the Stock Exchange of Hong Kong Limited ("the Stock Exchange"), the Company has to keep the shareholders of the Company and the public abreast of the year 2000 compliant status of the Company. Since the Company have not fully achieved Year 2000 compliant by 30th September, 1999 as disclosed in the Interim Report 1999, the Company is required to make an announcement to the public giving particulars of the outstanding exposure, risk assessment and also contingency plan in case of problems arising from Y2K non-compliance.

To tackle the possible problems that may arise as a result of the coming of year 2000. the Company has adopted the Y2K conformity requirements with reference to PD2000-1:1998 standard issued by the British Standards Institution. The Company has also requested Hughes Space and Communications International, Inc. ("Hughes") and Space Systems/Loral Inc. ("SS/Loral", together with Hughes, the "Vendors") to investigate APSTAR systems and the respective satellite control systems.

The Company has set up a special working group with expertise for the purpose of co-ordinating with the Vendors concerning their progress of investigation and the solving of the Year 2000 Problem ("Y2K Problem"). As at 30th September, 1999, the Company has completed about 85% of all its testing and solving of the Y2K Problem.

In-orbit satellites are inherently immune from any Y2K Problem as they do not require any onboard date dependent intelligent process. The Y2K Problem will not have any impact on the satellites* transponders. No transformation or mending was therefore needed for the satellites.

The Telemety, Tracking and Command Systems ("TT & C Systems") of the Satellite Control Centre of the Company are already in compliance with the Y2K requirements except for the few minor software systems that need upgrading and mending. Meanwhile, they are being tested and will be installed in the TT & C systems once the tests are completed by the Vendors. It is anticipated that the TT & C Systems will fully conform with the Y2K requirements no later than 31st December, 1999.

The Company's other automation systems have also conformed with the Y2K requirements save for the few minor software problems as mentioned. All other important systems such as antennae systems, UPS power supply systems, PABX systems and air-conditioning systems are all Y2K compliant.

Though the risk of Y2K Problem causing threat to the Company's operation is regarded negligible, the Company has plans to cater for any contingency that may arise during the high risk period from 30th December, 1999 to 2nd January, 2000. Contingency measures will consist of three phases. The "Preparatory Phase" mainly involves data and system backup and telephone hot lines will be set up with ISDN connections between the Satellite Control Centre and the Vendors. In the "Rollover Phase" during 30th December, 1999 and 2nd January, 2000, all critical systems will be closely monitored. In the "Status Review and Contingent Action Phase", the Company is prepared to take immediate action to do whatever is necessary to avoid disruption of the normal operation and that the Vendors will be called in for back up. A control centre has also been set up by the Company to liaise with the Control Centres of the Office of Telecommunications Authority and the Television and Entertainment Licencing Authority during the high risk periods as identified by the concerned governmental entities.

In view of all those measures that the Company has done and the continuing effort to solve the outstanding issues, it is conceived that the coming of the year 2000 will not cause any risk and disruption to the operation of the Company's business.

The Directors of the Company individually and jointly accept responsibility for the accuracy of this announcement.

By Order of the Board

Brian Lo

Company Secretary

Hong Kong, 14th October, 1999

For any enquiries, please contact

Brian LO, aptir@apstar.com

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