Intelsat Files Form 20-F; Adjusts Consolidated Financial Results to Reflect $1.7 Million Litigation Reserve

Business Wire, March 15, 2005

PEMBROKE, Bermuda -- Intelsat, Ltd. (the "Company") reported today that it will be filing its Annual Report today on Form 20-F for the twelve months ended December 31, 2004 containing its audited consolidated financial results. Subsequent to the issuance of its earnings release dated March 3, 2005, the Company updated its results to include the effect of a $1.7 million judgment in favor of certain of its former employees in respect of certain wrongful termination and related claims. The Company intends to vigorously appeal the award. Notwithstanding the Company's intent to appeal, the Company has determined that, as a result of the possibility that it could be liable for up to the full amount of the judgment, it is reflecting a reserve of $1.7 million on its financial statements. The Company is reissuing its Consolidated Statement of Operations, Consolidated Balance Sheet and Consolidated Statement of Cash Flows for the year and three months ended December 31, 2004 to reflect a $1.7 million litigation reserve. Updated consolidated financial statements are attached to this press release and are also available in today's Form 20-F filing.

The Company is reissuing, and has attached to this release, its Consolidated Statement of Operations, Consolidated Balance Sheet and Consolidated Statement of Cash Flows for the year and three months ended December 31, 2004 to reflect the $1.7 million reserve described above. The effect of this reserve for the year and three months ended December 31, 2004 is to increase the Company's selling, general and administrative expenses by $1.7 million which decreases the Company's income from continuing operations from $7.0 million to $5.3 million for the year ended December 31, 2004 and increases the Company's loss from continuing operations from $49.0 million to $50.7 million for the three months ended December 31, 2004. The reserve increases the Company's net loss from $37.0 million to $38.7 million and from $55.1 million to $56.9 million for the year and three months ended December 31, 2004, respectively. Free cash flow from operations of $320.5 million for the year ended December 31, 2004 was unchanged. EBITDA from continuing operations was decreased from $621.9 to $620.1 million and from $95.2 million to $93.5 million for the year and three months ended December 31, 2004, respectively, while Covenant EBITDA was unchanged at $800.2 million for the year ended December 31, 2004. The results included in this release are presented both in accordance with United States generally accepted accounting principles and also on a non-GAAP basis. All EBITDA from continuing operations, Covenant EBITDA, and free cash flow from operations figures noted above are non-GAAP financial measures. The financial information attached to this release contains a reconciliation of these non-GAAP financial measures to comparable GAAP financial measures.

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.

Note: Some of the statements in this news release constitute forward-looking statements that do not directly or exclusively relate to historical facts, including the guidance provided in the outlook section. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements as long as they are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements. Examples of these forward-looking statements in this release include statements as to the Company's intent to appeal the judgment discussed in this release and that the Company's potential liability in respect of such judgment. 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. Known risks include, but are not limited to, the potential adverse final resolution of the litigation described in this news release. More detailed information about other known risks will be included in Intelsat's Annual Report on Form 20-F for the year ended December 31, 2004 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 made 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.