Shares Acquisition - 16 October 1997

The Company announces that it has been informed by China Aerospace Corporation ("CASC") and China Telecommunications Broadcast Satellite Corporation ("ChinaSat"), both of which are shareholders each holding a 2 per cent. direct interest in the Company and approximately a 14.28 per cent. interest in APT Satellite International Company Limited ("APT International") which in turn holds a 61 per cent. interest in and is the controlling shareholder of the Company, that they have entered into agreements to disp ose of their respective 2 per cent. direct interest in the Company to Sinolike Investments Limited ("Sinolike"), a wholly owned subsidiary of China Aerospace International Holdings Limited ("CASIL"), a company the securities of which are listed on The Sto ck Exchange of Hong Kong Limited (the "Stock Exchange"). CASC holds approximately 49.85 per cent. of CASIL.

The Company has also been informed by Chia Tai International Telecommunication Company Limited ("Chia Tai"), another shareholder of APT International, that Telecom Holding Company Limited, its sole shareholder, has entered into an agreement with Sinolike to dispose of its entire interest in Chia Tai. Chia Tai holds approximately a 14.28 per cent. interest in APT International and a 2 per cent. interest in the Company. Further details for the above transactions are set out in a separate announcement of the same date herewith (16th October 1997) issued by CASIL.

Upon completion of the above transactions, Sinolike will indirectly (through Chia Tai) hold approximately a 14.28 per cent. interest in APT International and will be directly interested in a 4 per cent. and indirectly (through Chia Tai) interested in a fu rther 2 per cent. of the Company.

The trading of the shares of the Company on the Stock Exchange has been suspended since 2:30 p.m. 15th October, 1997 at the request of the Company due to the above transactions and an application has been made by the Company to the Stock Exchange to resum e the trading of the shares of the Company with effect from 10:00 a.m. on 17th October, 1997.

By Order of the Board
Brian Lo
Company Secretary

Hong Kong, 16th October, 1997