Intersputnik and Eutelsat Announce Long-Term Agreement for Extensive Capacity on the New W7 Satellite

Intersputnik Guarantees Long Term Availability of Capacity at Eutelsat's 36degrees East Neighbourhood for Digital TV and Broadband Services in Russia

Jan 15, 2010, 06:07 ET from Eutelsat Communications

PARIS and MOSCOW, January 15 /PRNewswire-FirstCall/ -- Intersputnik, the International Organization of Space Communications, and Eutelsat Communications (Euronext Paris: ETL) today announced the signature of a major contract for the long-term lease of 16 transponders at Eutelsat's 36degrees East video neighbourhood. The new agreement follows the entry into commercial service of Eutelsat's W7 satellite, copositioned with W4, which has enabled Eutelsat to double resources at this flagship location for television broadcasting, including for Russian and Ukrainian markets.

The 16 transponders have been leased by Intersputnik for the entire in-orbit life of W7, progressively joining over the next two years the four transponders already leased by Intersputnik on Eutelsat's W4 satellite.

Intersputnik will deploy the new capacity to support the rapid expansion of digital TV in Russia. It will in particular provide new resources for the Gazprom Media Group to boost the range of channels offered in its NTV Plus and Tricolor platforms. The transponders will also enable new satellite broadband access offers to be provided to homes beyond range of terrestrial broadband networks.

Commenting on the agreement, Michel de Rosen, Eutelsat's CEO, said "The arrival on station of our powerful new W7 satellite is a significant landmark in the relationship between Eutelsat and Russia, which expanded more than 15 years ago to support the development of satellite TV. Today, with almost 200 satellite channels and an audience of over six million subscribers, the Russian satellite TV market is exceptionally dynamic and shows significant potential for continued growth. With the colocation of W4 and W7, Eutelsat has doubled broadcasting capability at 36degrees East, confirming our commitment to the long-term deployment of premium resources. We are particularly proud to further consolidate our relationship with our longstanding partner, Intersputnik, which, together with its clients, is committed to developing broadcast and Internet services in Russia."

Commenting on the agreement, Vadim E. Belov, Intersputnik Director General, said: "Execution of this agreement represents a new breakthrough in our long-term partnership with Eutelsat. After Intersputnik became an official distributor of Eutelsat satellite capacity some years ago, we conducted intensive marketing of this capacity. Having the status of an international intergovernmental organization, Intersputnik promotes Eutelsat capacity at different regional and national markets of satellite communications services. Execution of this agreement has one more significant angle for us - Intersputnik has actually become the leading provider of satellite capacity for DTH broadcasting in the Russian Federation. We are planning to further develop our fruitful cooperation with Eutelsat in the interest of the multi-million Russian TV-audience."

About Eutelsat Communications

Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding company of Eutelsat S.A.. With capacity commercialised on 27 satellites that provide coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, Eutelsat is one of the world's three leading satellite operators in terms of revenues. At 30 September 2009, Eutelsat's satellites were broadcasting 3,300 television channels and 1,100 radio stations. More than 1,000 channels broadcast via its HOT BIRD(TM) video neighbourhood at 13 degrees East which serves over 123 million cable and satellite homes in Europe, the Middle East and North Africa. The Group's satellites also serve a wide range of fixed and mobile telecommunications services, TV contribution markets, corporate networks, and broadband markets for Internet Service Providers and for transport, maritime and in-flight markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates services through teleports in France and Italy that serve enterprises, local communities, government agencies and aid organisations in Europe, Africa, Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries employ 615 commercial, technical and operational employees from 28 countries.

About the Intersputnik International Organization of Space Communications.

Founded on November 15, 1971, the INTERSPUTNIK International Organization of Space Communications has 25 member states from Latin America to South East Asia and from Europe to the south of the Arabian Peninsula. INTERSPUTNIK's core business is to lease to telecommunications operators, broadcasters and corporate customers satellite capacity under agreements with partner operators and offer, through its subsidiary Intersputnik Holding, Ltd., full-scale services related to the installation and operation of satellite communications networks. Presently INTERSPUTNIK leases to its customers the resource of telecommunications satellites located in the geostationary orbit from 14W to 140E. One of its main partners is the Russian Satellite Communications Company that operates a fleet of advanced Express-series spacecraft. Also, INTERSPUTNIK is the official distributor of satellite resource and services of the European satellite operator Eutelsat S.A. and the Asian operator Measat and provides services on the ABS-1 (LMI-1) spacecraft. INTERSPUTNIK is an all-purpose supplier of satellite capacity and engineering solutions. Its customers, state-owned and private companies in over 40 countries, can choose from a vast range of satellite resources of various systems available on the global market and get information from a single source.

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SOURCE Eutelsat Communications