Asia Cellular Satellite Reaches Insurance Settlement on Garuda-1

Apr 17, 2001, 01:00 ET from PT Pasifik Satelit Nusantara

    JAKARTA, Indonesia, April 17 /PRNewswire/ --
 PT Pasifik Satelit Nusantara (Nasdaq:   PSNRY) (PSN), a diversified provider of
 fixed and mobile satellite communications in the Asia Pacific and a major
 shareholder of the Bermuda based ACeS International Limited (ACeS), today
 reported that ACeS has reached a settlement with underwriters of the launch
 insurance for the Garuda-1 satellite.
     Under the terms of the settlement, the underwriters have approved a claim
 of $101.5 million covering an anomaly that has affected one of the satellite's
 two L-band antennae.  As previously reported, the impact is confined to an
 inability of the Garuda-1 satellite's antenna to use effectively all of the
 power available.  Garuda-1 continues to perform in accordance with design
 specifications but will be required to operate below its original design
 capacity.  However, the impairment is not expected to impact ACeS's business
 plan in its early years. Payment on the claim is expected to begin shortly and
 will be completed by mid-May.
     "We are grateful to our underwriting group for working with us to resolve
 this matter expeditiously," stated Adi Adiwoso, CEO of both PSN and ACeS.  "By
 applying approximately 70% of the insurance proceeds to deferred premiums and
 in-orbit insurance for Garuda-1, we will be able to make a significant
 reduction in ACeS's indebtedness.  The balance of funds may be used to support
 the rollout of the ACeS system, or to make additional reductions in our
 indebtedness."
 
     About PT. Pasifik Satelit Nusantara
     PT. Pasifik Satelit Nusantara (PSN) is the first private satellite
 communications company in Indonesia and one of the leading satellite companies
 in the Asia Pacific.  Based in Jakarta, PSN is focused on becoming a fully
 integrated provider of satellite-based telecommunications products and
 services in Asia, including the wholesale leasing of satellite capacity and
 five emerging new services:
 
      -- Xpress Connection(TM), a low-cost, VSAT-based rural telephone service;
         Private Line, a WAN-based extension of Xpress Connection(TM) targeted
         at the corporate market;
      -- BYRU (pronounced: be ru), a GSM satellite service based on ASIA
         Cellular Satellite (ACeS), a satellite-based, handheld digital mobile
         telecommunications system which will provide both voice and data
         services;
      -- PASTI, a fixed application of the ASIA Cellular Satellite (ACeS)
         system that enables the benefits of satellite telephony anywhere
         within the home or office; and
      -- Multi-Media Asia (m2@), being developed as Asia's first
         satellite-based multimedia digital telecommunications system,
         supporting two-way voice and data services, Internet access, fax and
         DTH television services.
 
     About ACeS
     ASIA Cellular Satellite (ACeS) is the first regional satellite-based,
 handheld mobile telecommunications system designed exclusively for the Asia
 Pacific region.   ACeS offers dual mode (satellite -- GSM 900) voice, data,
 Internet services and global roaming capability to subscribers at a
 competitive cost.  ACeS is co-owned by PT Pasifik Satelit Nusantara of
 Indonesia (NASDAQ:   PSNRY), Lockheed Martin Global Telecommunications of the
 USA, the Philippine Long Distance Telephone Company and Jasmine International
 of Thailand.  ACeS' strong group of technology partners is headed by Lockheed
 Martin (satellite and subsystems technology) and Ericsson (mobile terminals).
 For more information on ACeS, please visit http://www.acesinternational.com.
 
     This press release contains forward-looking statements including
 statements regarding schedules for future satellite launches, commencement of
 commercial service of the ACeS system, and future development of other service
 platforms. These forward-looking statements are based on a number of
 assumptions, and actual results may be materially different from those
 expressed or implied by such statements. Material presented here is intended
 only for the use of the individual or entity to which it is addressed and may
 obtain information that is privileged, confidential, and exempt from
 disclosure under applicable law.
 
 

SOURCE PT Pasifik Satelit Nusantara
    JAKARTA, Indonesia, April 17 /PRNewswire/ --
 PT Pasifik Satelit Nusantara (Nasdaq:   PSNRY) (PSN), a diversified provider of
 fixed and mobile satellite communications in the Asia Pacific and a major
 shareholder of the Bermuda based ACeS International Limited (ACeS), today
 reported that ACeS has reached a settlement with underwriters of the launch
 insurance for the Garuda-1 satellite.
     Under the terms of the settlement, the underwriters have approved a claim
 of $101.5 million covering an anomaly that has affected one of the satellite's
 two L-band antennae.  As previously reported, the impact is confined to an
 inability of the Garuda-1 satellite's antenna to use effectively all of the
 power available.  Garuda-1 continues to perform in accordance with design
 specifications but will be required to operate below its original design
 capacity.  However, the impairment is not expected to impact ACeS's business
 plan in its early years. Payment on the claim is expected to begin shortly and
 will be completed by mid-May.
     "We are grateful to our underwriting group for working with us to resolve
 this matter expeditiously," stated Adi Adiwoso, CEO of both PSN and ACeS.  "By
 applying approximately 70% of the insurance proceeds to deferred premiums and
 in-orbit insurance for Garuda-1, we will be able to make a significant
 reduction in ACeS's indebtedness.  The balance of funds may be used to support
 the rollout of the ACeS system, or to make additional reductions in our
 indebtedness."
 
     About PT. Pasifik Satelit Nusantara
     PT. Pasifik Satelit Nusantara (PSN) is the first private satellite
 communications company in Indonesia and one of the leading satellite companies
 in the Asia Pacific.  Based in Jakarta, PSN is focused on becoming a fully
 integrated provider of satellite-based telecommunications products and
 services in Asia, including the wholesale leasing of satellite capacity and
 five emerging new services:
 
      -- Xpress Connection(TM), a low-cost, VSAT-based rural telephone service;
         Private Line, a WAN-based extension of Xpress Connection(TM) targeted
         at the corporate market;
      -- BYRU (pronounced: be ru), a GSM satellite service based on ASIA
         Cellular Satellite (ACeS), a satellite-based, handheld digital mobile
         telecommunications system which will provide both voice and data
         services;
      -- PASTI, a fixed application of the ASIA Cellular Satellite (ACeS)
         system that enables the benefits of satellite telephony anywhere
         within the home or office; and
      -- Multi-Media Asia (m2@), being developed as Asia's first
         satellite-based multimedia digital telecommunications system,
         supporting two-way voice and data services, Internet access, fax and
         DTH television services.
 
     About ACeS
     ASIA Cellular Satellite (ACeS) is the first regional satellite-based,
 handheld mobile telecommunications system designed exclusively for the Asia
 Pacific region.   ACeS offers dual mode (satellite -- GSM 900) voice, data,
 Internet services and global roaming capability to subscribers at a
 competitive cost.  ACeS is co-owned by PT Pasifik Satelit Nusantara of
 Indonesia (NASDAQ:   PSNRY), Lockheed Martin Global Telecommunications of the
 USA, the Philippine Long Distance Telephone Company and Jasmine International
 of Thailand.  ACeS' strong group of technology partners is headed by Lockheed
 Martin (satellite and subsystems technology) and Ericsson (mobile terminals).
 For more information on ACeS, please visit http://www.acesinternational.com.
 
     This press release contains forward-looking statements including
 statements regarding schedules for future satellite launches, commencement of
 commercial service of the ACeS system, and future development of other service
 platforms. These forward-looking statements are based on a number of
 assumptions, and actual results may be materially different from those
 expressed or implied by such statements. Material presented here is intended
 only for the use of the individual or entity to which it is addressed and may
 obtain information that is privileged, confidential, and exempt from
 disclosure under applicable law.
 
 SOURCE  PT Pasifik Satelit Nusantara