Intelsat, PanAmSat to Merge

PEMBROKE, Bermuda and WILTON, Conn., Aug. 29 -- Global communications provider Intelsat Ltd. and PanAmSat Holding Corp., a video, broadcasting and network distribution provider, today announced that the two companies have signed a definitive merger agreement under which Bermuda-based Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion. Officials say the transaction, which will take six to 12 months, will create a satellite company that will serve customers in more than 220 countries and territories using a combined fleet of 53 satellites.

David McGlade, CEO of Intelsat, will continue to serve as CEO and a company director after the merger. Joseph Wright, currently CEO of PanAmSat, is expected to become chairman of the board. Over the long term, the company will consolidate the two organizations. The company is expected to have pro forma annual revenues of more than $1.9 billion.

Upon completion of the transaction, both PanAmSat Holding Corporation and Intelsat Subsidiary Holding Co. Ltd will be direct or indirect wholly-owned subsidiaries of Intelsat (Bermuda) Ltd., and PanAmSat Holding Corp. and its subsidiaries will continue as separate corporate entities.

For more information, visit: www.intelsat.com or www.panamsat.com