Intelsat, Telespazio and Hughes Europe Launch New Satellite Broadband Service.

PEMBROKE, Bermuda -- Intelsat, Telespazio and Hughes Network Systems Europe (Hughes Europe) today announced they are cooperating in the launch of a new satellite broadband service platform to provide high-quality broadband IP connectivity, primarily serving Italian corporations with locations in Eastern Europe. Each location will be equipped with a Hughes very small aperture terminal (VSAT) to access satellite broadband service with guaranteed levels of service.

Intelsat is providing capacity on the IS-901 satellite located at 342 degrees E; Telespazio (Finmeccanica/Alcatel Company) is providing Internet backbone connectivity and managing operations from its teleport in Fucino, Italy; and Hughes is supplying the recently launched HN7000S product platform with DVB-S2 including a NOC (Network Operations Center) and broadband satellite routers, plus related services. End-user services will be marketed through Telespazio's and Hughes Europe's retail service provider sales channels.

The new service platform will provide integrated networks to corporate enterprises incorporating fast Internet access, data and voice links, VoIP, and VPN solutions, giving them all the advantages of broadband connectivity, even where terrestrial infrastructure is not available.

"This service offering is a perfect illustration of Intelsat's strategy to be a reliable wholesale supplier to its customers and to work in cooperation with them, enabling the deployment of new, flexible communications services in various parts of the world," said Intelsat's Stephen Spengler, Senior Vice President Europe, Africa, Middle East and Asia Pacific Sales. "Telespazio and Hughes Europe are important customers and trusted communications providers that we knew would share our commitment to providing superior connectivity services."

"Hughes Europe is proud to be a contributor to this broadband service," said Luigi Pagni, Vice President, Hughes Europe. "Hughes technology is leading the way for enterprises and governments around the world to realize the benefits of an ever-growing suite of value-added broadband solutions, such as digital signage and other retail media networks, staff communications solutions, content distribution, access continuity and managed network services."

"With the launch of this new broadband satellite service platform, our company intends to further reinforce its position in the international market, contributing to enhancing competitiveness in areas with a high potential for growth, but not always an adequate terrestrial communication infrastructure," said Telespazio's CEO, Giuseppe Veredice.

About HUGHES

Hughes Europe is a group of European companies wholly owned by Hughes Network Systems, LLC (Hughes), and provides broadband satellite solutions, services and products throughout Europe, North Africa and the Middle East.

HUGHES is the global leader in providing broadband satellite networks and services to large enterprises, governments, small businesses and consumers. HughesNet(TM) encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. To date, Hughes has shipped more than one million systems to customers in over 100 countries. Its broadband satellite products are based on the IPoS (IP over Satellite) global standard, approved by the TIA, ETSI, and ITU standards organizations. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. (OTCBB:HGCM). For additional information, please visit www.hughes.com.

About Telespazio

Telespazio, a joint venture between Finmeccanica (67%) and Alcatel (33%), is a world leader in satellite services from management of satellites to Earth observation services, and from satellite navigation to broadband multimedia telecommunications. Telespazio plays a leading role in the reference markets harnessing technological experience acquired over the years and through its participation in major European space programs such as: GALILEO, EGNOS, GMES and COSMO-SkyMed.

About the New Intelsat

Intelsat is the largest provider of fixed satellite services worldwide and is the leading provider of these services to each of the media, network services/telecom and government customer sectors, enabling people and businesses everywhere constant access to information and entertainment. Intelsat offers customers a greater business potential by providing them unrivaled resources with ease of business and peace of mind. Our services are utilized by an extensive customer base, including some of the world's leading media and communications companies, multinational corporations, Internet service providers and government/military organizations. Real-time, constant communication with people anywhere in the world is closer, by far.

Intelsat Safe Harbor Statement: Some of the statements in this news release constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. The forward-looking statements made in this release reflect Intelsat's intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, including known and unknown risks, uncertainties and other factors, many of which are outside of Intelsat's control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Detailed information about some of the known risks is included in Intelsat's quarterly report on Form 10-Q for the quarter ended June 30, 2006. Because actual results could differ materially from Intelsat's intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution. Intelsat does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Hughes, HughesNet and IPoS are trademarks of Hughes Network Systems, LLC.