Media Release

21 June 2000

APT Satellite Glory Limited (APT Glory), a wholly-owned subsidiary of APT Satellite Holdings Limited (APT Satellite) (stock code: 1045 & ATS), and SingaSat Private Limited, a wholly-owned subsidiary of Singapore Telecommunications Limited (SingTel), announced today that they have signed a joint venture agreement in relation to APT Satellite Telecommunications Limited (APT Telecom).

APT Telecom is a joint venture 55 per cent owned by APT Glory and 45 per cent owned by SingaSat. Indicating the opportunities opening up for the newly-formed company, APT Telecom was granted an external satellite-based Fixed Telecommunication Network Services (FTNS) licence in Hong Kong on 19 June 2000. It was awarded the licence by the Office of Telecommunications Authority of Hong Kong.

Under the terms of the licence, APT Telecom, which is based in Hong Kong, will be able to offer external telecommunications services in the Hong Kong Special Administrative Region through APT Satellite's APSTAR satellites and other systems. It plans to offer initially three external telecommunications network services:

APT Telecom will offer international telecom services by connecting Hong Kong to the rest of the world via APT Satellite¡¦s APSTAR systems. It plans to be the link connecting telecom resellers in Hong Kong and various global carriers. This service will relay large volumes of voice and data minutes, originating from Hong Kong or around the region, to any direct or indirect destinations.

VSAT (Very Small Aperture Terminal) dishes are small diameter (between 1.8m and 4.5m) antenna dishes installed at dispersed sites, used to receive and transmit signals. APT Telecom plans to link these terminals using APT Satellite¡¦s APSTAR systems. It will offer two VSAT services:

1. Corporate VSAT solutions provide two-way interactive communications for businesses. Customers can connect various geographically dispersed branches or sites to their headquarters for Intranet access and other services.
2. VSAT Internet solutions support Internet access across all protocols including Transmission Control Protocol/Internet Protocol (TCP/IP), Hyper-text Transfer Protocol (HTTP), video/audio streaming and Voice Over Internet Protocol (VOIP).

APT Telecom aims to establish Hong Kong as the telecom hub of north Asia, including mainland China. It will strive to establish Hong Kong as an Internet traffic hub for both Internet Service Providers and Internet Content Providers. It will also invest in both satellite- and cable-based infrastructure (if conditions warrant it) over the next few years to support the routing of Internet traffic through Hong Kong, as well as encourage the development and hosting of innovative and localised Internet sites in the SAR.

APT Telecom plans to invest between HK$200 million and HK$300 million over the next three years to ensure its ability to provide sufficient capacity and quality services to its customers.

Mr He Ke Rang, Vice-Chairman and President of APT Satellite, said, "APT Telecom will be able to have its external telecom network services up and running within a very short period of time. The proposed telecom networks will help provide additional external capacity, strengthen connectivity with overseas countries and facilitate market competition under the Government's Open Sky policy.

"This shows, once again, the APT Group¡¦s long-term commitment to contributing to the telecommunications industry and economy of the Hong Kong SAR."

Mr Hoh Wing Chee, SingTel Vice-President (International Network), said, "SingTel, through SingaSat, is very pleased to participate in the dynamic telecoms and satellite industries in the region around Hong Kong, through this new licence awarded to APT Telecom. We said when we increased our investment in APT Satellite's holding company last month that we are very positive about both the short-term prospects and long-term growth of the satellite business in this region, where faster-than-expected economic recovery has stimulated demand for satellite capacity. Our investment in APT Telecom is another symbol of our confidence in the business.

"SingTel has been an investor in APT Satellite since 1993. This new licence brings our partnership with the APT Group to an even higher level - from just the provision of satellite capacity to now offering telecoms services in the region around Hong Kong. We look forward to many, many more years of fruitful cooperation with the APT Group."

APT Satellite owns and operates three satellites - APSTAR-I, APSTAR-IA and APSTAR-IIR - which provide coverage to more than 100 countries across Europe, Africa and the Asia Pacific region, reaching a total of 75 per cent of the world's population. It is 51 per cent owned by Hong Kong-based APT Satellite International Company Limited (APT International). SingaSat last month doubled its stake in APT International to two sevenths (28.57 per cent).

The other principal shareholders of APT International are China Telecommunications Broadcast Satellite Corporation (two sevenths), and China Aerospace Corporation, CASIL Satellite Holdings Limited and Kwang Hua Development and Investment Limited (one seventh each).

Together with its 3.43 per cent direct stake in APT Satellite, SingaSat holds in aggregate about 18 per cent of APT Satellite.

APT Satellite Glory Limited, a wholly-owned subsidiary of APT Satellite Holdings Limited, is a leading provider of satellite transponder services for the broadcasting and telecommunications sectors in Asia Pacific. Other corporate information on APT Satellite can be found on its web site: http://www.apstar.com.

Email: aptir@apstar.com Email: sengjin@singtel.com

Contact: Kathy Cheung (kathy@ksa.com.hk ) Tel: 28010013

Winnie Yiu (winnieyiu@ksa.com.hk) Tel: 28010035