PanAmSat announced Thursday that the company will launch a new satellite to serve as the long-term transmission platform for NetSat Servicos Ltda, the Brazilian direct-to-home (DTH) television service, and for Sky's "Multi-Country Platform," the DTH platform serving the balance of Latin America (other than Mexico). NetSat and the Multi-Country Platform are part of the Sky Latin America alliance. The satellite, called PAS-6B, will replace the service currently offered on the PAS-6 satellite. PanAmSat expects to launch PAS-6B during the 4th quarter of 1998.

"Our number-one commitment is to our customers. After extensive

analysis, we determined that launching a new satellite is the best way

to ensure long-term continuity of service," said Frederick A. Landman,

president and chief executive officer of PanAmSat. "PAS-6B will enable

Sky to deliver hundreds of digital DTH television channels in South

America to the year 2014 and beyond."

"NetSat successfully added a total of 84 channels to its Brazilian

line-up back in December 1997," said Mauricio Vaz, chief operating

officer of NetSat. "We have since significantly increased our sales

and market share, and we are glad to see PanAmSat's commitment to

support us in our efforts to continuously provide superior service to

our growing subscriber base."

"We are pleased that PanAmSat has committed to launch PAS-6B to

ensure uninterrupted service to our subscribers in South America,"

said Mark Goldman, president and chief operating officer of Sky Latin

America, which is in charge of the Multi-Country Platform. "In

December we launched our complete service in Colombia, and we recently

enhanced our programming offering by adding eight new channels. The

current developments have not affected our performance."

The PAS-6B Atlantic Ocean Region satellite is already under

construction by Hughes Space and Communications Co. and will be

completed on an expedited schedule. The HS 601 HP satellite will

contain 32 high-power Ku-band transponders with South American

coverage. Arianespace is scheduled to launch the satellite from

Kourou, French Guiana, during the 4th quarter of 1998.

The current PAS-6 satellite, built by Space Systems/Loral, was

launched on August 8, 1997, and commenced service on September 19,

1997. The satellite has experienced several circuit failures in the

spacecraft's solar arrays, which have required PanAmSat to forego use

of some transponders initially and will require the company to turn

off additional transponders in later years.

Until PAS-6B is operational, PanAmSat will continue to provide

NetSat and the Multi-Country Platform with service on the PAS-6 and

PAS-3 satellites, which are both located at 43 degrees West Longitude.

PAS-6B will be co-located in that orbital slot to ensure seamless

migration of the South American DTH services. NetSat, which provides

the Sky service in Brazil, and Sky Colombia, part of the Multi-Country

Platform, are already using PAS-6 and PAS-3. PanAmSat is evaluating

several options for the long-term use of available PAS-6 capacity,

including backup service to PAS-6B and relocation of the PAS-6

satellite to a new orbital slot.

Sky is the brand name of the DTH service offered by the strategic

alliance of Organizacoes Globo, Brazil's leading entertainment group,

Mexico's Grupo Televisa, S.A., the largest production and media

company in the Spanish-speaking world, News Corp one of the world's largest media companies, and Tele-Communications International Inc., a subsidiary of one of the world's leading telecommunications companies. The alliance will provide a 24-hour digital DTH television service to all of Latin America and the Caribbean region broadcasting hundreds of digital television channels

with crystal-clear pictures and CD-quality sound to its subscribers. Sky officially launched in Brazil in October 1996, in Mexico in December 1996 and in Colombia in December 1997.