P
R/06/10

EUTELSAT FIRMLY DENIES ALL ALLEGATIONS REGARDING IMPROPER COMMERCIAL PRACTICE TOWARDS THE GEORGIAN BROADCASTER, GPB

Paris, 4 February 2010

Contrary to statements made by the Georgian Public Broadcaster GPB, Eutelsat reaffirms that no contract has come into force between GPB and Eutelsat. Eutelsat also reaffirms that it does not respond to political or ideological pressure of any kind in the conduct of its activity and operates according to commercial and business rationale.

In the course of its business, Eutelsat conducts negotiations with clients to ensure maximum use of its satellites. In advance of the entry into service of the W7 satellite, Eutelsat confirms that negotiations were pursued in 2009 with several customers interested in the same capacity on this satellite, and that it has selected to allocate this capacity to a European telecommunications operator after receiving a firm commitment for significantly more capacity than that requested by the Georgian broadcaster.

Eutelsat accordingly informed GPB that the solution offered on W7 was no longer available, and that it could satisfy GPB’s requirements with another satellite in its the fleet, namely W2A. The W2A satellite offers improved coverage of Georgia and western Russia than W7, as well as higher power, enabling smaller dishes of 80cm to be used in comparison to minimum one metre dishes required for W7.

In comparing both offers, Eutelsat firmly refutes the allegation of GPB representatives, who claim that W7 offers the advantage of direct access to consumer satellite antennas already pointed at this satellite to receive major Russian TV platforms. Eutelsat specifies that Russian TV platforms are broadcast using capacity with circular polarisation, which requires consumer equipment which is not compatible with channels transmitted using linear polarisation generally deployed in the rest of Europe and Georgia. Consumers therefore need to acquire either one or both types of equipment, depending on the service they want to receive.

The initial offer of capacity presented by Eutelsat to GPB on W7 uses linear polarisation, as is also the case for the offer on W2A. This means that Russian consumers have the same requirement to change their equipment or add a second dish to receive Russian TV services (circular polarisation) and “First Caucasian” (linear polarisation). The offer on W2A involves no additional constraint compared with the initial offer on W7.

Finally, Eutelsat wishes to reaffirm that as a satellite operator, its function does not encompass control of content or data transported by the capacity leased to clients.

About Eutelsat Communications

Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding company of Eutelsat S.A.. With capacity commercialised on 27 satellites that provide coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, Eutelsat is one of the world's three leading satellite operators in terms of revenues. At 30 September 2009, Eutelsat’s satellites were broadcasting 3,300 television channels and 1,100 radio stations. More than 1,000 channels broadcast via its HOT BIRD™ video neighbourhood at 13 degrees East which serves over 123 million cable and satellite homes in Europe, the Middle East and North Africa. The Group’s satellites also serve a wide range of fixed and mobile telecommunications services, TV contribution markets, corporate networks, and broadband markets for Internet Service Providers and for transport, maritime and in-flight markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates services through teleports in France and Italy that serve enterprises, local communities, government agencies and aid organisations in Europe, Africa, Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries employ 615 commercial, technical and operational employees from 28 countries.

www.eutelsat.com