BT Broadcast Services Selects Intelsat to Support New Satellite Broadband Service Launch

Business Wire, June 2, 2004

Business Editors/High-Tech Writers

LONDON, U.K.--(BUSINESS WIRE)--June 2, 2004

Intelsat today announced the commercial launch of BT's new satellite broadband service using the Intelsat system. The service will be an integral part of BT's overall broadband strategy to bring competitively priced two-way, high-speed services to users throughout the United Kingdom. The Intelsat service was developed for Internet service providers (ISPs) and other licensed operators focused on meeting the broadband needs of home offices and small and medium enterprise offices.

BT Broadcast Services has selected Intelsat as its provider of choice for the service, which will deliver complete UK coverage. "There is a clear and demonstrated need for businesses, ISPs and others in the UK to have high-quality, high-speed, satellite broadband connections," said Jonathan Wing, Head of Satellite Broadband at BT Broadcast Services. "Satellite broadband enables businesses and ISPs to be effective and competitive, wherever their offices are located. We chose Intelsat because of its extensive satellite experience, commitment to service quality and willingness to work with us to customize this offering to our specific needs."

With Intelsat as the preferred provider for BT Broadcast Services' UK SME broadband offering, BT Retail will offer small and medium businesses and small office/home office users a high-quality, "always-on" service that will enable end-user applications such as email, web browsing, file transfer and related services. While the broadband service will initially be available across the United Kingdom, BT Broadcast Services has the option to expand its offering into Western Europe and possibly other regions where Intelsat already offers two-way managed broadband services.

Intelsat will manage the turnkey network, which includes capacity on Intelsat's satellites and use of its teleport in Germany. BT Broadcast Services will manage the wholesale product, customer installation and helpdesks and market the services on a wholesale basis.

"Intelsat's managed solutions are an attractive and innovative offer for customers looking to serve the market quickly and manage market risk while providing hassle-free communications solutions to their end customers," said John Stanton, President, Intelsat's Data, Carrier and Internet business unit. "Having a high-quality provider such as BT choose Intelsat to provide its broadband solution further validates our managed service strategy of leaving the network details to us to give customers the freedom to focus on pursuing new business opportunities."

About Intelsat

Building on 40 Years of Leadership. As a global communications leader with 40 years of experience, Intelsat helps service providers, broadcasters, corporations and governments deliver information and entertainment anywhere in the world, instantly, securely and reliably. Intelsat's global reach and expanding solutions portfolio enable customers to enhance their communications networks, venture into new markets and grow their businesses with confidence. For more information, visit www.intelsat.com.

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 the expectation of BT and Intelsat that the users involved in the BT's broadband service trial will become commercial subscribers, statements made by the Head of Satellite Broadband at BT Broadcast Services relating to BT's confidence that satellite broadband will grow quickly and that the offering will contribute to the success of BT's customers, and statements relating to the customers to be served and applications to be enabled by BT's satellite broadband offering. The forward-looking statements made in this news release reflect Intelsat's intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside of Intelsat's control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Detailed information about some of the known risks is included in Intelsat's annual report on Form 20-F for the year ended December 31, 2003 on file with the U.S. Securities and Exchange Commission. Because actual results could differ materially from Intelsat's intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution. Intelsat does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.