Asia Satellite Telecommunications Holdings Limited Announcement Of Interim Results

15 August 2008 

Asia Satellite Telecommunications announces its 2008 interim results for the six months ended 30 June 2008.

Chairman’s Statement

Solid Performance

Improved Market Continues

I am pleased to report that the improved market conditions recorded at the time of the 2007 Annual Report have continued through the first half of 2008, our 20th year of operation, and that we are optimistic about the future.

During the period under review, AsiaSat added new customers and achieved increases both in overall utilisation and in the number of transponders provided to customers. This strong performance enabled us to maintain the core turnover at a level only marginally less than that of the corresponding period last year despite the migration of broadcast customers in China to the new Chinese satellites.

During the period, our satellite fleet performed well and our new satellite, AsiaSat 5, which is currently under construction in the United States, is progressing well. I am also pleased to report that we have now embarked on another new satellite, AsiaSat 6. In April, we moved into new office premises in Hong Kong.

The China Earthquake

In May, the devastating earthquake in China left many thousands dead and millions homeless in Sichuan province and its surrounding regions.

The magnitude of this disaster was overwhelming but I can report to Shareholders that AsiaSat volunteered to work with the Chinese government and commercial organisations to make a modest but important contribution to the relief effort. The Company donated satellite capacity, time, knowledge and expertise to help establish vital communication links, and provided equipment and emergency support to various Government departments and emergency services in the affected areas.

In Hong Kong, AsiaSat has also sponsored a fund raising event that was broadcast across Asia on 1 June 2008 via one of our satellites. We are grateful to all who supported this initiative and our deepest sympathy goes out to all the people whose lives have been affected by the disaster.

Interim Results

Turnover

Turnover for the first half of 2008 was HK$487 million (2007: HK$461 million), an increase of some 6%. The uplift came principally as a result of the inclusion of SpeedCast’s revenue since SpeedCast became a wholly-owned subsidiary of AsiaSat in the second half of 2007. SpeedCast generated a gross revenue of HK$55 million and made a net contribution of HK$33 million to the Group’s consolidated turnover after the elimination of inter-company sales during the period.

As noted above, revenue was impacted by the migration of broadcast customers in China to new Chinese satellites. Growth was also held back by a reduction in one-off receipts that totalled HK$1 million compared with HK$8 million in the same period in 2007.

Despite these negative influences upon the revenue in the first half of 2008, it is rewarding to note thatour core business improved and that we continued to secure new contracts during the first six months.

This new business helped to mitigate the effect of the lost revenue mentioned above. In fact, the income from new customers in the first half of 2008 almost compensated for the loss of revenue from the Chinese broadcast customers.

Operating Expenses

Operating expenses in the first half of 2008 amounted to HK$136 million (2007: HK$90 million).

The increase arose from the inclusion of SpeedCast’s expenses and a provision for impairment of trade receivables of HK$14 million.

Profit

The profit attributable to equity holders during the period was HK$223 million (2007: HK$247 million), a decline of some 10%. The decrease resulted primarily from the inclusion of a loss of HK$2 million recorded by SpeedCast in first half of the year, the impairment provision of HK$14 million, and a reduction in interest income of approximately HK$18 million owing to the continued fall in bank deposits interest rates. The negative impact of this was lessened somewhat by a reduction in the Hong Kong tax rate.

The Group’s EBITDA (earnings before interest, tax, depreciation and amortisation) margin decreased to 72% (2007: 81%) following the consolidation of SpeedCast, a company that operates businesses with relatively thin margins.

Cashflow

During the period, the Group generated a net cash outflow of HK$44 million (2007: inflow of HK$105 million) after paying capital expenditure of HK$239 million (2007: HK$162 million) and dividends of HK$121 million (2007: HK$106 million). As at 30 June 2008, the Group reported a cash balance of HK$2,245 million (31 December 2007: HK$2,288 million). The Group continues to be debt free.

Dividend

The Board has resolved to pay an interim dividend of HK$0.08 per share (2007: HK$0.08), the same as last year. The interim dividend is payable on or about 6 November 2008 to equity holders on the share register as of 10 October 2008. The share register will be closed from 3 to 10 October 2008, both days inclusive.

Corporate Developments

As set out in the 2007 Annual Report, we announced in January 2008 our intention to voluntarily delist our American Depositary Shares (“ADSs”) from the New York Stock Exchange (“NYSE”) as the benefits did not justify the costs. The delisting became effective on 28 January 2008. Despite this, the Company remains registered under Section 12(g) of the Exchange Act with the U.S. Securities and Exchange Commission (“SEC”) and is still subject to the periodic disclosure requirements of the Exchange Act. This will continue to be the case until the Company is deregistered from the SEC.

Once the Company meets the requirements for deregistration, we intend to file an application for such deregistration.