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The Satellite News Financial Ticker

By | August 4, 2003

      Week of July 25-31, 2003
      Percentage Change

      Symbol
      July 31 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      3.14
      6.4
      30.3
      155.3
      82.6
      ASIASAT TELECOM SAT
      16.70
      (0.6)
      3.3
      15.6
      46.6
      BRITISH SKY BROADCASTING BSY
      46.05
      0.7
      2.1
      9.4
      15.0
      ECHOSTAR COMM -CL A DISH
      36.27
      1.2
      4.8
      21.1
      62.9
      HUGHES ELEC (GM -CL H) GMH
      13.73
      2.7
      7.2
      16.4
      28.3
      LORAL SPACE & COMM LOR
      0.22
      (92.9)
      (91.9)
      (94.9)
      NEWS CORP NWS
      30.41
      0.2
      0.5
      7.5
      15.8
      NEW SKIES SATELLITES NSK
      5.66
      4.2
      2.7
      16.7
      36.4
      PANAMSAT SPOT
      17.41
      (0.6)
      (5.5)
      0.6
      18.9
      PASIFIK SATELIT NUSANTARA PSNRY
      0.16
      121.4
      10.7
      181.8
      3.3
      PEGASUS COMMUNICATIONS PGTV
      35.79
      6.0
      22.7
      32.8
      173.2
      rSTAR CORP RSTRC
      0.56
      9.8
      1.8
      2.2
      133.3
      SES GLOBAL SES.LU
      6.03
      4.1
      6.7
      14.9
      (5.8)
      SIRIUS SATELLITE RADIO SIRI
      1.78
      9.2
      5.3
      140.5
      178.1
      XM SATELLITE RADIO XMSR
      13.77
      8.8
      25.3
      42.0
      411.9
      Operators’ Average
      100.00
      11.6
      1.7
      37.6
      73.7
      Manufacturers
      ANDREW ANDW
      10.90
      8.0
      16.7
      42.1
      6.0
      BALL BLL
      49.70
      2.3
      9.2
      (11.5)
      (2.9)
      BOEING BA
      33.12
      1.3
      (3.5)
      21.4
      0.4
      COM DEV INTL CDV
      0.53
      12.8
      1.9
      55.9
      (11.7)
      EMS TECHNOLOGIES ELMG
      17.20
      9.6
      27.5
      41.9
      10.5
      GARMEN LTD. GRMN
      38.29
      (8.8)
      (4.0)
      (9.7)
      30.7
      GILAT SAT NETWORKS GILTF
      4.85
      (4.5)
      (4.7)
      41.4
      (37.8)
      GLOBECOM GCOM
      3.90
      (6.0)
      20.0
      26.2
      4.0
      HARRIS HRS
      32.37
      4.7
      7.7
      13.3
      23.1
      HONEYWELL HON
      28.28
      (0.5)
      5.3
      19.8
      17.8
      KVH KVHI
      20.09
      0.1
      (18.4)
      33.0
      133.6
      LOCKHEED MARTIN LMT
      52.34
      (1.9)
      10.0
      4.6
      (9.4)
      LUCENT TECHNOLOGIES LU
      1.75
      (2.8)
      (13.8)
      (2.8)
      38.9
      MOTOROLA MOT
      9.04
      (1.1)
      (4.1)
      14.3
      4.5
      NERA NERAY
      1.99
      26.3
      42.0
      66.1
      83.5
      ORBITAL SCIENCES ORB
      8.23
      1.6
      12.7
      47.5
      95.0
      QUALCOMM QCOM
      37.48
      3.4
      4.3
      17.6
      3.0
      RAYTHEON RTN
      30.70
      (8.5)
      (6.5)
      2.6
      (0.2)
      ROCKWELL COLLINS COL
      26.03
      2.1
      5.7
      21.7
      11.9
      SCIENTIFIC-ATLANTA SFA
      30.29
      0.5
      27.1
      86.4
      155.4
      SKY FRAMES SKYU
      1.10
      (15.4)
      (18.5)
      (12.0)
      (86.3)
      STM WIRELESS STMI
      0.01
      (60.0)
      900.0
      (97.5)
      TITAN TTN
      15.34
      36.2
      49.1
      91.0
      47.5
      TRIMBLE NAVIGATION TRMB
      27.35
      11.2
      18.5
      8.6
      119.0
      VIASAT VSAT
      14.22
      (0.4)
      (1.0)
      33.7
      23.2
      Manufacturers’ Average
      100.00
      0.4
      7.3
      62.1
      22.5
      Nasdaq Composite Index
      S & P 500 COMP
      1,735.02
      0.9
      6.9
      18.5
      29.9
      SN Stock Price Average SP50
      990.31
      0.2
      1.6
      8.0
      12.6
      100.00
      4.6
      5.2
      53.0
      41.7

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      After years of being the “Rodney Dangerfield” of the satellite industry, the fixed satellite services (FSS) sector may be finally getting some respect. The second quarter results released by Intelsat show two positive signs for the industry. One is a revenue upturn and the other is consolidation. Moreover, Intelsat indicated it is still on track for its long-awaited IPO, possibly as soon as the second quarter of 2004.

      Intelsat reported a 2.3 percent sequential revenue growth. This followed PanAmSat [Nasdaq: SPOT] reporting a 1.9 percent sequential growth during the second quarter. The revenue upturn for these leaders marked a reversal from a period of decline. For Intelsat, the revenue growth came from data – a segment that has been eyed for high growth but only now is beginning to over-shadow video. Intelsat announced new contracts for private data networks from Telenor, the World Bank and SovIntel. The company also pointed to the growing video neighborhoods on its Intelsat 906 satellite over Africa, as well as expanding revenue from government – a sector that all operators now view as a source of new revenue.

      On the consolidation side, Intelsat highlighted its recent acquisition of the North American satellite assets it plans to buy from Loral Space and Communications [PNK: LRLSQ]. The acquisition gives Intelsat a key beachhead in the important U.S. video market. We expect Intelsat to bring extensive revenue and cost synergies to the Loral fleet. Importantly to the industry, it also eliminates a financially weak operator, concentrating capacity in the hands of an owner that can stabilize prices and contribute to healthier industry dynamics.

      On the IPO front, Intelsat stated its continued commitment to an IPO ahead of its June 30, 2004, deadline, as prescribed by the ORBIT Act. Intelsat CEO Conny Kullman implied that Intelsat shares would come to market immediately upon closing of the Loral acquisition. With closing slated for the first quarter of 2004, an IPO the following quarter looks likely.

      We expect these developments to bring renewed focus on the FSS sector and its attractive cash flow generation.

      Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached by phone at 212/278-4260 or by e-mail at tom.watts@sgcowen.com. Readers should assume that SG Cowen Securities Corp. and/or its affiliates intend to offer services in investment banking to the above referenced companies within the next three months, and to seek compensation for such services.

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