Intelsat, Ltd. reported revenue of $617.9 million and a net loss of $94.3 million for the three months ended September 30, 2009. The company also reported Intelsat, Ltd. EBITDAii, or earnings before net interest, loss on early extinguishment of debt, taxes and depreciation and amortization, of $439.8 million, and New Bermuda Adjusted EBITDAii of $490.9 million, or 79 percent of revenue, for the three months ended September 30, 2009.

Intelsat, Ltd. reported revenue of $1.9 billion and a net loss of $684.7 million for the nine months ended September 30, 2009. The net loss reflects non-cash charges of $499.1 million incurred in the first quarter of 2009 for orbital location impairments. The company also reported Intelsat, Ltd. EBITDA ii of $937.9 million and New Bermuda Adjusted EBITDAii of $1.5 billion, or 79 percent of revenue, for the nine months ended September 30, 2009.

"Our third quarter financial performance reflects continuing solid demand for services across our global satellite fleet and ground network, as well as the success of our capacity management program," said Intelsat CEO Dave McGlade. "By executing on this strategic objective, we have boosted our capacity utilization to eighty-five percent and improved our returns on our network investments. We will opportunistically supplement our capacity with modest investments in order to support customer growth and to increase the resilience of our fleet."

McGlade continued, "Demand for fixed and mobile connectivity, especially in Africa, Latin America and the Middle East, drove growth in our Network Services and Intelsat General businesses in the third quarter. We also continue to build successful video neighborhoods, such as the 1° West Longitude location serving Eastern and Central Europe. Overall, our business is performing well, and with a $9.5 billion revenue backlog, we enjoy attractive visibility on future revenues and cash flows."

Business Highlights

Intelsat's 1° West Longitude video neighborhood gained another direct-to-home ("DTH") platform. Kesongs Enterprises Ltd., operator of the Ukraine MYtv® DTH platform, signed a long-term agreement for capacity on the recently launched Telenor Thor 6 satellite, on which Intelsat owns 10 transponders. Intelsat's Thor 6 capacity supplements the Intelsat 10-02 satellite that also resides at that orbital location.

Intelsat is successfully packaging its ground network infrastructure with capacity to provide solutions to global programmers. Global programmer and media company Discovery Networks expanded its relationship with Intelsat, adding capacity for its new and rapidly growing ID Network on Intelsat's Galaxy 13 HD neighborhood, and also contracting for fiber and teleport services related to its distribution capabilities. Separately, Botswana Radio and Television agreed to a long-term renewal of its capacity on Intelsat 7 for use in video contribution and broadcast distribution.

Intelsat's Network Services business grew its backlog with a number of expansions, renewals and pre-commitment agreements demonstrating global demand for satellite capacity and network infrastructure. African broadband services provider IP Planet, which is owned by Gilat Satcom, has contracted for new and expanded capacity on five of Intelsat's satellites, including pre-commitments on Intelsat 14 and Intelsat 17. Other contracts of note included agreements with Asian communications provider KT Corporation, Central Bank of Russia, African wireless and enterprise services provider MTN International, and Venezuelan communications providers BT Latin America and CANTV.

Intelsat's 11 satellite programs continue to progress. With respect to the two satellites expected to launch in 2009, the company indicated that the launch of Intelsat 14 is expected to occur this week following several months of delays caused by scheduling issues at the launch provider. The second 2009 launch, Intelsat 15, is scheduled for a Land Launch mission later this month. The company reported that it had received approval under the Sea Launch bankruptcy proceedings to work directly with Land Launch on the two launch missions, including Intelsat 15, that are expected to be performed by that provider. This approval reduces to approximately $43 million the amount of deposits for launches that Sea Launch is still required to provide Intelsat.

Intelsat's system average fill rate on its approximately 2,000 station-kept transponders was 85 percent at September 30, 2009.

On October 29, 2009, Intelsat was selected as the successful bidder at a bankruptcy auction for the ProtoStar I satellite with an all cash offer of $210 million. The acquisition, which is subject to receipt of certain other regulatory approvals, is expected to close in the fourth quarter of 2009. Upon closing, ProtoStar I, built by Space Systems/Loral, will be re-named Intelsat 25 and transitioned to an Intelsat orbital location in the Atlantic Ocean region, providing incremental satellite capacity to central Africa and other regions. Launched in July 2008, the satellite is expected to have a 16-year life span.

Financial Results for the Three Months Ended September 30, 2009

Revenue for the three months ended September 30, 2009 increased by $19.4 million, or 3 percent, to $617.9 million as compared to $598.5 million for the three months ended September 30, 2008. New business, strong renewals, expansion of existing contracts and improved contract terms contributed to the overall increase in revenue. Growth in transponder services and managed services was lower than recent periods due to decreased availability of high demand capacity in inventory as reflected in an increased fill factor on our fleet and also to delays in the launch of the Intelsat 14 satellite. By service type, revenue increased or decreased due to the following:

Transponder services” an aggregate increase of $25.7 million, due primarily to a $19.4 million increase in revenue from network services customers, resulting from new business and strong renewals, primarily in the Latin American and Caribbean, the Europe and the Africa and Middle East regions, and a $13.1 million increase in revenues resulting from new services and strong renewals sold primarily to North American customers of our Intelsat General business, a portion of which was related to capacity resold from third parties, partially offset by a $6.8 million decline in revenues from media customers, primarily in the Africa and Middle East region, due to the conclusion of a contract in 2008, and Latin America region.

Managed services” an aggregate increase of $3.9 million, due primarily to a $4.5 million increase in revenue from network services customers, resulting from new business and service expansion in trunking and private line solutions and GXS broadband solutions primarily in the Africa and Middle East region, partially offset by a decline in revenue from media customers resulting from reduced occasional use video services due to fewer events in the third quarter of 2009 as compared to the same period in 2008.

Channel” a decrease of $3.1 million related to continued declines from the migration of point-to-point satellite traffic to fiber optic cables across transoceanic routes and the optimization of customer networks, a trend which we expect will continue.

Mobile satellite services and other” an aggregate decrease of $7.1 million, primarily due to a $4.7 million decrease in revenue resulting from decreased sales of professional and technical services performed for satellite operators and other customers of our satellite-related services business, as well as $2.3 million in decreased revenue from third-party usage-based mobile services for customers of our Intelsat General business.

Total operating expenses for the three months ended September 30, 2009 decreased by $16.2 million, or 4 percent, to $381.9 million as compared to $398.1 million for the same period in 2008. In addition to the changes related to the line items discussed below, loss on derivative financial instruments increased by $2.2 million to $38.8 million as compared to $36.6 million in the third quarter of 2008.

Changes in direct costs of revenue, selling, general and administrative expenses, depreciation and amortization and interest expense, net are described below.

Direct costs of revenue decreased by $6.2 million, or 7 percent, to $86.8 million for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008. The decrease was primarily due to the following:

a decrease of $5.1 million related to launch vehicle re-sale costs in the third quarter of 2008; and

a decrease of $2.2 million in staff expenses.

Selling, general and administrative expenses increased by $5.1 million, or 10 percent, to $56.3 million for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008. The increase was primarily due to an increase of $8.1 million in bad debt expense as compared to a credit in the third quarter of 2008, offset by a decrease of $2.6 million in professional fees.

Depreciation and amortization expense decreased by $17.3million, or 8 percent, to $200.0million for the three months ended September30, 2009 as compared to the three months ended September30, 2008. The decrease was primarily due to the following:

a net decrease of $16.9 million in depreciation expense due to certain satellites, ground and other assets becoming fully depreciated and changes in certain satellites' estimated useful lives; and

a decrease of $6.3 million in amortization expense due to changes in the expected pattern of consumption of amortizable intangible assets; partially offset by

an increase of $5.8 million in depreciation expense resulting from the impact of satellites placed into service during the last quarter of 2008 and the third quarter of 2009.

Interest expense, net consists of the gross interest expense we incur less the amount of interest we capitalize related to capital assets under construction and less interest income earned. We also held interest rate swaps with an aggregate notional amount of $3.3billion to economically hedge the variability in cash flow on a portion of the floating-rate term loans under our senior secured and unsecured credit facilities. The swaps have not been designated as hedges for accounting purposes. Interest expense, net decreased by $30.8 million, or 8 percent, to $337.5 million for the three months ended September 30, 2009, as compared to $368.3 million for the three months ended September 30, 2008. The decrease in interest expense was principally due to the following:

a decrease of $23.9 million due to lower interest rates on our variable rate debt in 2009 as compared to the third quarter of 2008; and

a decrease of $2.2 million due to higher interest expenses in the third quarter of 2008 related to the amortization of discounts resulting from the adjustments to fair value of our debt in purchase accounting in connection with the New Sponsors Acquisition and the impact of our change of control offers and refinancings in connection with the New Sponsors Acquisition.

The non-cash portion of total interest expense, net was $109.6 million for the three months ended September 30, 2009 and included $78.3 million of payment-in-kind interest expense. The remaining non-cash interest expense was primarily associated with the amortization of the deferred financing fees incurred as a result of new or refinanced debt and the amortization and accretion of discounts and premiums recorded to adjust our debt to fair value in connection with the New Sponsors Acquisition.

EBITDA, New Bermuda Adjusted EBITDA and Other Financial Metrics

Intelsat, Ltd. EBITDA of $439.8 million for the three months ended September 30, 2009 reflected an increase of $33.5 million, or 8 percent, from $406.3 million for the same period in 2008. New Bermuda Adjusted EBITDA increased by $16.9 million, or 4 percent, to $490.9 million, or 79 percent of revenue, for the three months ended September 30, 2009 from $474.0 million, or 79 percent of revenue, for the same period in 2008.

At September 30 and June 30, 2009, Intelsat's backlog, representing expected future revenue under contracts with customers and Intelsat's pro rata share of backlog in its joint venture investments, was $9.5 billion.

Intelsat management has reviewed the data pertaining to the use of the Intelsat system and is providing revenue information with respect to that use by customer set and service type in the following tables. Intelsat management believes this provides a useful perspective on the changes in revenue and customer trends over time.

 Revenue Percentage Contribution Comparison by Customer Set and Service Type                           
                                                                                                       
 By Customer Set                                                                                       
                                                                                                       
                                   Three Months Ended September 30,   Three Months Ended September 30, 
                                   2008                               2009                             
                                                                                                       
                                                                                                       
 Network Services                  49%                                50%                              
 Media                             34%                                31%                              
 Government                        15%                                17%                              
 Other                             2%                                 2%                               
                                                                                                       
 By Service Type                                                                                       
                                                                                                       
                                   Three Months Ended September 30,   Three Months Ended September 30, 
                                   2008                               2009                             
                                                                                                       
                                                                                                       
 Transponder Services              76%                                78%                              
 Managed Services                  12%                                13%                              
 Channel                           6%                                 5%                               
 Mobile Satellite Services/Other   6%                                 4%                               


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Free Cash Flow from Operations and Capital Expenditures

Intelsat generated negative free cash flow from operationsi of $19.5 million during the three months ended September 30, 2009, as the result of interest and satellite construction payments as well as changes in working capital during the period. Free cash flow from operations is defined as net cash provided by operating activities, less payments for satellites and other property and equipment (including capitalized interest). Payments for satellites and other property and equipment during the three months ended September 30, 2009 totaled $172.6 million.

Intelsat generated free cash flow from operationsi of $93.3 million during the nine months ended September 30, 2009. Payments for satellites and other property and equipment during the nine months ended September 30, 2009 totaled $456.0 million.

Intelsat is in the process of procuring and building 11 satellites that are expected to be launched throughout the next three years, including the New Dawn joint venture satellite. The company expects that 2009 total capital expenditures will range from approximately $625 million to $675 million, however, several late 2009 contract milestones could result in some expenditures being delayed into 2010. The 2009 capital expenditure estimate excludes capital expenditures related to the New Dawn satellite, for which Intelsat's cash contributions in 2009 are expected to be minimal, and the purchase of the ProtoStar I satellite, for which all of the $210 million consideration is expected to be paid in 2009. The company indicated that changes in the overall satellite launch market could result in increases to expected launch costs in the future.

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End Notes

i For comparative purposes, we have combined the predecessor and successor entity periods (pre- and post-New Sponsors Acquisition on February 4, 2008) from January1, 2008 to January 31, 2008 and from February 1, 2008 to September 30, 2008 in our discussion above, as we believe this combination is useful to provide the reader a period-over-period comparison for purposes of understanding our operating results. We believe this combination of results facilitates an investor's understanding of our results of operations for the nine months ended September 30, 2009 compared to the combined nine months ended September 30, 2008. This combination is not a measure in accordance with GAAP and should not be used in isolation or substituted for the separate predecessor entity and successor entity results.

ii In this release, financial measures are presented both in accordance with U.S. generally accepted accounting principles ("GAAP") and also on a non-GAAP basis. All combined period results, EBITDA, Adjusted EBITDA, free cash flow from operations figures and related margins included in this release are non-GAAP financial measures. Please see the consolidated financial information below for information reconciling non-GAAP financial measures to comparable GAAP financial measures. New Bermuda Adjusted EBITDA is a term based on Adjusted EBITDA, as defined in the indenture governing the 11 1/4% Senior Notes due 2017 and the 11 ½%/12 ½% Senior PIK Election Notes due 2017 issued by Intelsat Bermuda ("2017 Bermuda PIK Notes") on June 27, 2008. Please see the reconciliations of New Bermuda Adjusted EBITDA to Intelsat, Ltd. EBITDA provided with the consolidated financial information below.

Conference Call Information

Intelsat management will host a conference call with investors and analysts at 11:00 a.m. ET on Monday, November 9, 2009 to discuss the company's financial results for the three and nine months ended September 30, 2009. Access to the live conference call will also be available via the Internet at the Intelsat Web site: www.intelsat.com/investors/events. To participate on the live call, U.S.-based participants should call (866) 713-8566. Non-U.S. participants should call +1 (617) 597-5325. The participant pass code is 68039198. Participants will have access to a replay of the conference call through November 16, 2009. The replay number for U.S.-based participants is (888) 286-8010 and for non-U.S. participants is +1 (617) 801-6888. The participant pass code is 19637503.

About Intelsat

Intelsat is the leading provider of fixed satellite services worldwide. For more than 40 years, Intelsat has been delivering information and entertainment for many of the world's leading media and network companies, multinational corporations, Internet service providers and governmental agencies. Intelsat's satellite, teleport and fiber infrastructure is unmatched in the industry, setting the standard for transmissions of video, data and voice services. From the globalization of content and the proliferation of HD, to the expansion of cellular networks and broadband access, with Intelsat, advanced communications anywhere in the world are closer, by far.

Intelsat Safe Harbor Statement: Some of the statements in this news release constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. The forward-looking statements made in this release reflect Intelsat's intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, including known and unknown risks, uncertainties and other factors, many of which are outside of Intelsat's control.