APT SATELLITE EXPECTS HEALTHY GROWTH AHEAD
Set to Benefit from Reduced Satellite Supply Owing to Asia's Economic Slowdown

Satellite service providers are set to benefit from a reduction in the supply of satellite transponder services in Asia as a number of planned satellite launches are delayed owing to the region's economic slowdown, according to a leading Hong Kong-based satellite service provider.

Speaking after the annual general meeting today, APT Satellite Holdings Limited's ("APT Satellite" or "the Company") (Stock code: 1045 or ATS) Chairman, Mr Xie Gao-Jue, expressed optimism towards the future prospects of the Company.

"The supply of new transponder units during 1998 will be significantly decreased due to suspension or postponement of a number of satellite projects representing a reduction of over 100 transponder units in the Asia Pacific region," said Mr Xie.

APT Satellite presently owns and operates three satellites: APSTAR-I and APSTAR-IA are approximately 90% leased while APSTAR-IIR, the Company's third satellite launched in late 1997, commenced service in January 1998. According to Mr Xie, APSTAR-IIR is expected to increase its take-up to 50% by the end of 1998, thus bringing substantial revenue to the Company.

APT Satellite's after-tax profit grew 69.3% to HK$129.6 million for the year ended 31 December 1997 while turnover grew 42.1% to HK$522.5 million for the same period. Earnings per share grew 28.6% to 30.85 HKcents.

"Despite the economic slowdown in Asia, business prospects still look good for the Company. While supply will be reduced, we anticipate customer demand will be maintained: the PRC, our major market, is not much affected by the slowdown," said Mr Xie.

Mr He Ke Rang, APT Satellite's Vice-chairman and President, said,"With a re-adjusted supply and demand condition in Asia, we expect the need for APT Satellite's services will increase. This is especially so due to the continued rapid development of the telecoms and broadcasting industries in the Asia Pacific region, particularly in the PRC."

For financial 1997, 53% of the Company's business was PRC-based. Meanwhile, the broadcasting industry accounted for 76% of the Company's total turnover, with the balance coming from telecoms customers.

"Not only is APT Satellite a market leader in the broadcasting and telecoms sectors, with our newly launched APSTAR-IIR which carries 28 C-band and 16-Ku-band transponders, our capability of supplying high-powered Ku-band transponder services will put us in a superior market position. We are actively planning new satellite projects including direct broadcast satellite (DBS) services," said Mr He.

APT Satellite provides satellite transponder services for broadcasting and telecoms sectors in more than 100 countries throughout Asia, Europe, Africa and Australia, serving 75% of the world's population. Its major customers include world class corporations such as ESPN, HBO, Sony, Disney, Turner, Reuters and WTCI, as well as major corporations in the PRC such as the Ministry of Radio, Film and Television, Unicom and China Telecommunications Broadcast Satellite Corporation.

Founded in 1992 and listed on The Stock Exchange of Hong Kong Limited and New York Stock Exchange, Inc. since December 1996, APT Satellite's principal shareholders include major PRC entities such as China Aerospace Corporation, China Telecommunications Broadcast Satellite Corporation, China Satellite Launch & Tracking Control General and China Travel Fok Tai (Macau) Limited; as well as international and local conglomerates such as SingaSat Pte. Limited, a wholly-owned subsidiary of Singapore Telecom, CASIL Satellite Holdings Limited and Kwang Hua Development and Investment Limited, a Taiwan-based conglomerate.

Hong Kong, 28 May 1998