PanAmSat Corporation (NASDAQ: SPOT) today announced the creation of a new company that will enable the introduction of PanAmSat video, data and Internet services to the Mexican telecommunications market. PanAmSat de México is the result of a joint venture between PanAmSat and a Grupo Pegaso affiliate owned by Mr. Alejandro Burillo Azcárraga. The new company has filed for a concession with the Mexican government that will permit it to serve as the reseller of all PanAmSat services that require a satellite uplink within Mexico.

‘PanAmSat de México will open the door to a valuable new market for PanAmSat, creating new opportunities for growth from the explosive demand for wireless, value-added video and other telecommunications services in Mexico,’ said R. Douglas Kahn, PanAmSat’s president and chief executive officer. ‘With unrivaled experience delivering commercial satellite services to Latin America and more satellites offering coverage of Mexico than any other company, PanAmSat is well positioned to meet the demand and capitalize on these opportunities.’

‘This strategic alliance will contribute significantly to the advancement of communications services throughout Mexico by instantly establishing a state-of-the-art satellite infrastructure serving the country,’ said Alejandro Burillo Azcárraga, chairman of Grupo Pegaso. ‘Through PanAmSat de Mexico, the increasing demand for satellite multimedia services will finally be fully attended, guaranteeing to give Mexico the needed means for future growth and development.’

PanAmSat de Mexico was formed late last year through a partnership between PanAmSat International Sales, Inc. (49 percent), a subsidiary of PanAmSat, and SA de CA (51 percent), a holding company created by Mr. Alejandro Burillo, majority owner of the private equity investment firm Grupo Pegaso.

The pending government concession will establish PanAmSat de Mexico as the only company within Mexico with transmission rights to PanAmSat’s global satellite network. This arrangement will open the door for PanAmSat de Mexico o offer any of PanAmSat’s value-added satellite services to broadcast, cable, Internet and telecommunications customers throughout Mexico. These offerings include the company’s global program distribution, Internet backbone access, business communications and data services as well as special event and ad hoc services. The concession will also give PanAmSat’s NET-36 Internet broadcast network access to Latin America’s second largest Internet market via the PanAmSat fleet.

PanAmSat currently operates 11 satellites that offer coverage of Mexico. These in-orbit spacecraft include the PAS-1R, PAS-3 and PAS-9 Atlantic Ocean Region satellites and the Galaxy IR, Galaxy IIIR, Galaxy IVR, Galaxy V, Galaxy VI, Galaxy IX, Galaxy XR and Galaxy XI satellites.

For further information please contact:

Don Meyer
Tel: 203 861 8324