PanAmSat’s Galaxy IIIR Satellite Operating Normally On Secondary SCP

PanAmSat Corporation (NASDAQ: SPOT)
today announced that the Galaxy IIIR domestic satellite experienced the
apparent failure of its primary spacecraft control processor (SCP), which
caused the satellite to automatically switch control to its back-up SCP.
Normal satellite operations were restored through the use of the back-up
SCP. PanAmSat and the satellite manufacturer, Boeing Satellite Systems Inc.,
are continuing to investigate the apparent failure.

A Boeing 601 spacecraft launched in 1995, Galaxy IIIR experienced the
failure of its primary SCP at 2:40 p.m. Eastern time on April 21 causing a
temporary outage of some C-band and Ku-band transponders. Normal operations
were restored to the satellite within two hours, during which time some
customers experienced brief interruptions of service.

In response to satellite technical issues, PanAmSat implemented a
comprehensive satellite expansion and restoration plan in 1998 that includes
the launch of four new Galaxy spacecraft as replacements for satellites that
could suffer SCP failures. As part of this plan, PanAmSat is set to launch
the fourth satellite in the series, Galaxy IIIC, during the third quarter of
this year to serve as the replacement for Galaxy IIIR at 95 degrees west
longitude.

Boeing has previously concluded that SCPs on Boeing 601 spacecraft launched
prior to August 1997 contain tin-plated relay switches that can experience
electrical shorts when several factors are concurrently present. The PAS-4
Indian Ocean Region satellite experienced the failure of its primary SCP in
November 1998 and continues to provide normal service on its backup SCP.
PanAmSat plans to launch PAS-10 in May to serve as the replacement for PAS-4
at 68.5 degrees east longitude.

“PanAmSat took immediate and successful action to assure the highest level
of service for all our Galaxy IIIR customers,” said Robert A. Bednarek,
PanAmSat’s executive vice president and chief technology officer. “In
addition, our on-going satellite expansion and restoration effort has
afforded us the capability to offer unparalleled backup and redundancy for
our customers.”

NOTE: The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for certain forward-looking statements so long as such information
is identified as forward-looking and is accompanied by meaningful cautionary
statements identifying important factors that could cause actual results to
differ materially from those projected in the information. When used in this
press release, the words “estimate,” “plan,” “project,” “anticipate,”
“expect,” “intend,” “outlook,” “believe,” and other similar expressions are
intended to identify forward-looking statements and information. Actual
results may differ materially from anticipated results as a result of
certain risks and uncertainties, which are more specifically set forth in
the company’s annual report on Form 10-K for the year ended December 31,
1999 on file with the Securities and Exchange Commission. These risks and
uncertainties include but are not limited to (i) risks associated with
technology (including without limitation, delayed launches, launch failures
and in-orbit failures), (ii) regulatory risks, including the ability to
obtain export licenses, (iii) risks of uninsured loss, (iv) risks associated
with the Company’s new Internet initiatives, and (v) litigation. PanAmSat
cautions that the foregoing list of important factors is not exclusive.
Further, PanAmSat operates in an industry sector where securities values may
be volatile and may be influenced by economic and other factors beyond the
Company’s control.