"PanAmSat has initiated a comprehensive contingency plan to provide continuous service for our Galaxy IV satellite customers. We have advised our customers to implement their restoration plans whenever possible. In addition, we are providing restoration services on several of our satellites. Galaxy VI, a C-band satellite located at 74 degrees West Longitude, will be moved over the next six days to 99 degrees West Longitude, the current orbital location of the Galaxy IV satellite. Ku-band customers on Galaxy IV have been offered capacity on the nearby Galaxy III-R satellite, and several customers have already successfully started migrating to this satellite. We should see the return of many Ku-band services as the day progresses.

"PanAmSat continues to experience difficulties in the control of

the Galaxy IV spacecraft. The on-board attitude control systems have

not been restored and spacecraft engineers continue to examine

possible solutions. The satellite is in a safe, stable mode with a

deactivated communications payload. Engineers from PanAmSat and Hughes

Space and Communications Co. are reviewing all available design

information to assess the potential fault and suggest remedies.

"PanAmSat remains committed to the immediate restoration of our

customer networks. Satellite capacity has been identified and made

available to customers, and PanAmSat is making every effort to assist

those customers in migration to that spare capacity. We continue to

investigate the cause of the Galaxy IV on-board anomaly and will

provide further updates as additional information becomes available.

"We would also like to express our thanks to other satellite

operators in the United States and abroad, which have offered to

provide PanAmSat with satellite capacity to meet our customers'

service requirements. Our industry recognizes the importance of the

services we provide for consumers every day, and we are allied to meet

any challenge."