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Pasifik Satelit Nusantara Reports Three Quarters

JAKARTA, Indonesia Nov. 27 /PRNewswire/ -- Indonesia's first private satellite company, P.T. Pasifik Satelit Nusantara (PSN) (Nasdaq: PSNRY), today announced that its unaudited total revenues for the nine months ended September 30, 1996 aggregated US$7,508,424. This represents an increase of 260% over total revenues of US$2,085,534 for the same period in 1995. The Company continues to report a positive performance in the third quarter of the year, with consolidated net income for the first nine months of 1996 at US$44,899, compared to a net loss of US$2,932,343 for the same period in 1995.

Net income per share for the nine-month period ended September 30, 1996 was US$0.001, based on 67,737,552 weighted average shares outstanding under general accepted accounting principles (GAAP) in Indonesia. Net income per ADS (American Depositary Share) was US$0.003. Each ADS represents three shares of the Company's common stock.

The above amounts have been determined following GAAP in Indonesia. Under US GAAP, the Company's weighted average shares outstanding would be 71,997,000. A net loss for the first nine months of 1996 would have been approximately US$1,689,420. Net loss per share and net loss per ADS for the period under review, based on US GAAP, would have been US$0.02 and US$0.06 respectively.

Revenues from the leasing of satellite transponders on Palapa C1 continued to be the mainstay of PSN's income in the three quarters ending September 30, 1996. Palapa C1 was launched at the beginning of the year and began contributing to the Company's performance in April 1996.

Mr. Adi Adiwoso, PSN's Chief Executive Officer and President Director, said: "PSN is pleased to report a strong operational performance with its business development plans progressing in line with management's projections at the time of the Company's listing. Our consistent financial performance serves as a testimony to PSN's ability to position itself as one of the leading satellite-based communications service providers in the Asia-Pacific region."

Third Quarter Financial Review

The Company's total revenues for the three months ended September 30, 1996 was US$3,663,250, compared to total revenues of US$501,543 in 1995. Third quarter net income increased from US$122,919 in 1995 to US$143,537 in 1996. Net income per share for the quarterly period ended September 30, 1996 was US$0.003. Net income per ADS was US$0.009.

The above amounts have been determined following GAAP in Indonesia. Under US GAAP, the Company's net loss for the three months ended September 30, 1996 would have been US$793,521, while 1996 third quarter net loss per share and net loss per ADS, based on US GAAP, would have been US$0.01 and US$0.03 respectively.

Operational Review and Outlook

Asia Cellular Satellite ("ACeS" Project) - The Company announced in September 1996 the signing of three milestone contracts for the ACeS project. These included the agreement with Lockheed Khrunichev Enterprise to launch the Garuda Satellite on a Proton rocket from the Baikonur Cosmodrome in the Republic of Kazakhstan between July and September 1998. The second contract was signed with Ericsson for an initial order of over US$225 million for the manufacture of the dual-mode satellite cellular handsets. The dual-mode handsets are designed to be able to communicate directly with the Garuda Satellite as well as connecting with local terrestrial cellular and fixed networks. The third contract was an underwriting commitment with PT Danareksa and ING Bank which would complete the financing of the ACeS project.

Satellites - The Company's satellite transponder leasing business continued to report steady growth. In addition, a formal agreement was signed with PT Telkom in August for PSN to acquire the rights to ten transponders on the Palapa B2P satellite until March 1, 1997 with an option for the Company to extend the arrangement on a monthly basis. PSN has already leased these transponders and they are currently generating revenues.

Xpress Connection VSAT System - Xpress Connection made its debut in August 1996 as it was installed and utilized in Dompu, Nusa Tenggara Barat at PT Telkom's request to provide a telecommunication facility for the international surfing competition held locally. Meanwhile, Xpress Connection also scored early successes in its marketing efforts, with the signing of three important agreements in September 1996. These included a contract with the Region III KSO unit, operated by PT Ariawest International, to lease an initial 100 terminals by the end of the year; a memorandum of understanding with PT Pos Indonesia to provide communications services at post office locations throughout Indonesia of which there are over 4,700; and the inclusion of TEDCO Group, Ltd. as a third party to PSN's contract with The Titan Corporation, to provide marketing, logistical support and lease financing for Xpress Connection sales to Indonesia and other growing Asian markets.

Negotiations are currently under discussion with other KSO's and PT Telkom for similar projects.

Xpress Connection marks the first phase of PSN's becoming a full fledged telecommunications company and the Company anticipates immediate future growth from its operations. The ACeS system will be launched in 1998 and PSN expects the system to significantly contribute to the Company's earnings. Finally as the M2A project takes form, PSN expects it to become an additional source of revenue in 1999. Each of these technologies provides a different telecommunications service, and by operating in three different segments of the market, PSN will effectively distribute its revenue dependence, thereby diversifying its risk, as well as increasing its market coverage.

P.T. Pasifik Satelit Nusantara (PSN) is the first private satellite company in Indonesia. It is also one of the leading satellite companies in the Asia Pacific, with assets of more than US$216 million. Headquartered in Indonesia, the company is focused on becoming a fully integrated provider of satellite-based telecommunications products and services in Asia.

PSN is the primary sponsor and one-third owner of P.T. Asia Cellular Satellite, which is developing a satellite-based, hand-held, digital mobile telecommunications system intended to provide competitively-priced telephone and data services to subscribers in the Asia Pacific region.

On June 10, 1996, PSN successfully completed an initial public offering of 3,650,000 American Depositary Shares (ADS) at US$20.00 per ADS. Each ADS represents three shares of the Company's common stock. PSN's ADSs are listed
on Nasdaq National Market under the trading symbol "PSNRY." Donaldson, Lufkin & Jenrette was the lead manager of the offering.

 -0- 11/27/96

/NOTE TO EDITOR: The full text of the press release is available by email, please send requests to:

Press releases can also be downloaded from the Edelman homepage on the World WideWeb. Type using a WWW browser such as Mosaic or Netscape./

/CONTACT: Rian Alisjahbana, Margaret Patterson or Yani Surjaatmadja, all of Pasifik Satelit Nusantara, Jakarta, INT + 62-21-522-9292; or Chee Soo Leng or John Holland of Edelman Financial, Singapore, INT + 65-334-3413, or Barbara Tong or Angela Lee of Edelman Financial, Hong Kong, INT + 852-2804-1256, or INT + 852-2804-4734, for Pasifik Satelit Nusantara/


CO: P.T. Pasifik Satelit Nusantara ST: IN: TLS SU: ERN

LI-NT -- NYW013 -- 4560 11/27/96 08:00 EST
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Publication:PR Newswire
Date:Nov 27, 1996
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