APT Satellite Repays US$25 Million Bank Loan For Lower Gearing

2 September 1998, Hong Kong

APT Satellite Holdings Limited (the "Group") (Share code: 1045 or ATS) announced that it has repaid US$25 million to a bank syndication last month, which was the first of the two equal installments of a US$50 million term-loan facility (the "Facility"). As a result, the debt-ratio of the Group further decreased to 36% from 42% at the end of 1997. This helps reinforcing the capital structure of the Group and enabling it to tide over the current unfavorable business environment subsequent to the currency turmoil and economic downturn.

The Facility, arranged by NatWest Markets, was raised primarily to finance the launch insurance premium of APSTAR-IIR, the third satellite of the Group, which was successfully launched in October 1997. The interest rate is based on LIBOR plus 45 basis points. The Facility is for a term of 18 months and repayable in two equal installments. The Group repaid the first installment in last August and the second installment will be due in February 1999. The Group has full confidence to repay the second one in due course.

The repayment has also decreased the interest-bearing debt to a lower level paring down the interest cost of the Group.

For enquiry, please contact:

Brian LO APT Satellite Holdings Limited Tel: (852) 25262281 Fax: (852) 25220419 Email: aptir@apstar.com Web-site: www.apstar.com	Raymond Siu/Dorothy Chu Keith Statham Associates Limited Tel: (852) 28108108 Fax: (852) 28684116 Email: raymonds@ksa.com.hk           Dorothy@ksa.com.hk