Intelsat Announces Strategic Acquisitions in First Step for Delivering New Wholesale Global Connectivity Solutions

Business Wire, March 18, 2002

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--March 18, 2002

Intelsat, Ltd. today announced two planned acquisitions that represent a significant first step in Intelsat's efforts to assemble a new ground-based infrastructure to complement its global satellite system.

Intelsat expects to use this ground-based infrastructure to begin offering hybrid space/terrestrial services in a new service portfolio called "Global Connectivity Solutions." Hybrid services in this family are being designed to address increasing customer demand for one-stop shopping and end-to-end services. In addition, these acquisitions are intended to bring Intelsat closer to its customers in the U.S. market.

Specifically, Intelsat has signed an agreement to acquire the World Systems business unit of Lockheed Martin Corporation (NYSE:LMT), including existing service contracts with World Systems' customers for Intelsat capacity as well as earth stations located in Clarksburg, Maryland and Paumalu, Hawaii.

Under the agreement, Intelsat would also purchase the teleport facilities and related assets of COMSAT Digital Teleport, Inc. Intelsat further announced that it had acquired a teleport facility in Fuchsstadt, Germany from Deutsche Telekom AG. Terms of these transactions were not disclosed.

In addition, Intelsat announced that it has established points of presence (POPs) connected by fiber at key traffic exchange points in Los Angeles, New York and London that will be connected to the teleport facilities to be acquired from Lockheed Martin and Deutsche Telekom.

"These developments clearly demonstrate Intelsat's commitment to provide our customers with the tools they need to better succeed in their own markets," said Conny Kullman, CEO of Intelsat, Ltd. "This move also shows how a privatized Intelsat has quickly begun to execute its business strategy to move from a satellite-centric to a network-centric company."

The assets to be acquired under the Lockheed Martin agreement will include:

-- U.S.:  1-888-566-0486

-- Outside the U.S.:  1-402-998-0651

The teleport acquired in Fuchsstadt, Germany includes one 18-meter and two 32-meter antennas and operating facilities.

John Stanton, President of Intelsat Global Sales & Marketing Ltd., noted, "The agreement with Lockheed Martin represents more than just an infrastructure play as it will allow us to get closer to our customers in the United States and provide them with value-added services."

Ramu Potarazu, President and COO of Intelsat Global Service Corporation, added, "These initial steps represent the first elements of a basic infrastructure we are putting in place for our Global Connectivity Solutions portfolio, while streamlining our current operations. We are planning to expand our terrestrial network throughout the world via additional teleports, associated fiber links and POPs. We are looking to work with our distributors to help us lease or acquire these elements, and expect to partner with these customers to expand our terrestrial network as new opportunities arise."

The closing of the Lockheed Martin transaction is subject to regulatory and other approvals and certain other conditions.

Intelsat will be holding a conference call today for the press at 11:00 am EST (Washington time) through the following telephone numbers and verbal passcode:

-- U.S.:  1-888-566-0486

-- Outside the U.S.:  1-402-998-0651

A replay facility will be available for 24 hours through the following numbers:

-- U.S.:  1-888-566-0486

-- Outside the U.S.:  1-402-998-0651

About Intelsat

Intelsat, Ltd. offers telephony, corporate network, broadcast and Internet solutions around the globe via capacity on 21 geosynchronous satellites in prime orbital locations. Customers in more than 200 countries and territories rely on Intelsat satellites and staff for quality connections, global reach and reliability. For more information, visit www.intelsat.com.

SAFE HARBOR STATEMENT:

Some of the statements in this news release constitute "forward-looking statements" that do not directly or exclusively relate to historical facts, including statements relating to our business strategy and the expected cost synergies, expected enhanced sales capabilities, planned expansion of our terrestrial infrastructure, planned expansion of our service offerings and other expected impact on our business of the strategic transactions described above.

The forward-looking statements in this news release reflect our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside of our control.

These factors could cause our actual results to differ materially from the expectations expressed or implied in the forward-looking statements and include known and unknown risks.

In connection with any proposed strategic transaction, known risks include, but are not limited to, the failure to complete a planned transaction or the need to modify aspects of the transaction in order to obtain regulatory approvals; the inability to retain and continue to serve successfully customers gained in connection with the transaction; the inability to execute integration strategies successfully or to achieve planned synergies or business goals; the incurrence of unexpected costs of integration; and the inability to retain or integrate the capabilities of key personnel joining Intelsat as a result of the transaction.