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[08.10.2006] EUTELSAT STATUS REPORT ON HOT BIRD™ 3 SATELLITE

Paris, 6 October 2006

Eutelsat’s HOT BIRD™ 8 broadcast satellite was brought into full commercial service this week with the complete transfer in the night of October 2 to 3 of all broadcast traffic from HOT BIRD™ 3 to the Group’s newest satellite. The transfer took place
seamlessly with no interruption of service for broadcast clients. With the entry into service of HOT BIRD™ 8, which comes five months after HOT BIRD™ 7A, the Group has met an objective to provide customers with extensive redundancy across a constellation of copositioned satellites at 13 degrees East.
Released from its mission at 13 degrees East, HOT BIRD™ 3 has begun transfer operations for its relocation to 10 degrees East. Copositioned with Eutelsat’s W1 satellite, it is scheduled to begin service later in October at 10 degrees East under the new name of EUROBIRD™ 10.
In the night of October 3 to 4 HOT BIRD™ 3/EUROBIRD™ 10 experienced an anomaly at the end of the eclipse period which has resulted in substantial damage to a solar array and subsequent loss of satellite power. Eutelsat, together with the satellite’s manufacturer, EADS Astrium are pursuing investigations into the cause of the anomaly. This incident does not impact on procedures for the satellite’s transfer to 10 degrees East, which continue unchanged although the satellite will operate a
lower number of transponders than foreseen. At 30 September 2006 the net carrying value of HOT BIRD™ 3 amounted to 55 million euros, including in-orbit performance incentives. Depending on a more precise
assessment of the consequences of the anomaly over the next few days, the Group may have to record a non-cash impairment charge under its accounting policies.

Source: http://www.eutelsat.com

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