The Signing of a Term-Loan Facility

(6 August 1997, Hong Kong) APT Satellite Holdings Limited ("APT Satellite") (Share Code: 1045 or ATS) announced that its wholly-owned subsidiary, APT Satellite Co. Ltd., signed a term-loan facility agreement (the "Agreement") with a bank syndication arranged by NatWest Markets for a bank loan amounting to US$50 million.

The loan has a final maturity of 18 months. Repayment is in two equal semi-annual installments commencing 12 months from the Agreement Date. APT Satellite will pay a margin of 45 basis points over the London Interbank Offered Rate. Assuming the loan is fully drawn down, and taking into account of the shareholders' loan, the debt ratio of APT Satellite will still be about 50%.

Proceeds will primarily be used for the launch insurance premium of the third satellite of APT Satellite, APSTAR-IIR, which is due to be launched in September this year. APSTAR-IIR is a Space System/Loral FS-1300 satellite. Total investment for the project amounted to approximately US$220 million. The footprint of APSTAR-IIR will stretch over more than 100 countries, serving approximately 75 per cent. of the world's population. It is designed to provide high power output in both C-band and Ku-band transponder services, thereby further strengthening the competitive advantage of APT Satellite. As at the end of June 1997, more than 30 per cent. of the transponders on APSTAR-IIR were already pre-leased or committed by customers. APT Satellite's first two satellites, APSTAR-I and APSTAR-IA, are operating in their full capacities in the geostationary orbit with leased out rates well over 90%.

The syndication includes NatWest Markets, Bank Austria, Banque Paribas and Norinchukin Bank. The success of the deal demonstrated the full confidence of the banking sector to the future development of APT Satellite as well as the enormous potential of the satellite transponder business in the Asia Pacific region including the People's Republic of China.