PanAmSat Signs Long-Term Deals


PanAmSat Corp. said Monday that it has signed long-term satellite real estate
deals with Home Box Office, Turner Broadcasting System Inc. and other AOL Time
Warner Inc. programmers.

HBO, TBS Superstation, Cable News Network, Turner Network Television, Cinemax
and other networks will gain anchor-tenant status on next-generation PanAmSat
satellites, which are expected to serve the U.S. cable industry through

Satellite transmission is expected to begin in 2005, on replacements for the
Galaxy V and Galaxy IR satellites.

According to analysts, the deal is valued at $250 million.

In separate news, PanAmSat said Monday that it has created a new company,
PanAmSat de Mexico, as a joint venture with an affiliate of Mexican media
conglomerate Grupo Pegaso. The new company plans to deliver video, data and
Internet services to the Mexican telecommunications market.

PanAmSat operates 11 satellites covering Mexico. PanAmSat de Mexico has filed
for a concession from the Mexican government that would allow it to resell the
satellite services there.

'We believe that these two deals were likely accelerated in order to firm up
the value of PanAmSat,' UBS Warburg LLC analyst Thomas Eagan said in a research

He believes PanAmSat will be either spun out or taken private as part of a
broader restructuring of Hughes Electronics Corp., adding, 'We expect [Hughes']
DirecTV [Inc.] to be a player in News Corp.'s satellite assets by the end of
next month.'