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REVIEW OF IN-ORBIT OPERATIONS

Arianespace is a longstanding partner to Eutelsat, having executed 24 of the Group’s 42 launches since its creation. During the year Arianespace performed two more launches for Eutelsat, placing three satellites into orbit: HOT BIRD™ 9 together with W2M on 20 December 2008, and HOT BIRD™ 10 on 12 February 2009.

The 64-transponder HOT BIRD™ 9 satellite went into service on 17 February 2009 at 13° East. Following on from the launch of HOT BIRD™ 8 in 2006, HOT BIRD™ 9 is the second of a new generation of high-performance broadcast satellite. Identical in design in order to achieve the most effective redundancy, the dual mission of these satellites is to anticipate the renewal of capacity at the Group’s premium broadcast neighbourhood at 13° East and ensure industry-leading levels of in-orbit security. With 1 100 channels delivered through the three copositioned satellites (HOT BIRD™6, 8 and 9) 13° East has consolidated its pole position worldwide for the number of channels broadcast.

Replaced by HOT BIRD™ 9 after three years of service, HOT BIRD™ 7A was redeployed on 24 February 2009 to the Group's newest video neighbourhood, at 9° East. This position was opened in May 2007 by the EUROBIRD™ 9 satellite, and quickly scored commercial success across Europe, with 125 channels after 12 months. One of its assets is its immediate proximity to the HOT BIRD™ neighbourhood, enabling homes to receive channels from both positions with a single dual-feed antenna. The arrival of HOT BIRD™ 7A, renamed EUROBIRD™ 9A, at 9° East has doubled transponders, increasing the number of channels broadcast from 125 to 245. The Group schedules to redeploy EUROBIRD™ 9, released from its mission at 9° East, to 48° East during the first half of the 2009-2010 financial year.

Following close behind HOT BIRD™ 9, the launch HOT BIRD™ 10 enabled Eutelsat to consolidate the 7° West neighbourhood, which is one of the most dynamic in the Middle East. Rebranded ATLANTIC BIRD™ 4A, this satellite went into service on 30 March 2009 at 7° West for the first part of its life in order to increase capacity at an orbital position operated jointly with the Egyptian operator Nilesat. The partnership between the two operators began in July 2006 with the collocation of Eutelsat's ATLANTIC BIRD™ 4 satellite alongside the two Egyptian satellites Nilesat 101 and Nilesat 102. The arrival of ATLANTIC BIRD™ 4A is a second step in the shared development of this position. This step will be followed by the deployment of the Egyptian satellite Nilesat 201 in mid 2010, followed by Eutelsat's ATLANTIC BIRD™ 7 in late 2011.

Continuing its policy of dynamic optimisation of resources, the Group redeployed ATLANTIC BIRD™ 4 from its original 7° West location to 16° East on 15 April 2009. The satellite was renamed EUROBIRD™ 16 and co-located with W2 to reinforce resources for broadcasting in Central and Europe and Indian Ocean islands.

The W2M satellite, launched together with HOT BIRD™ 9 on Ariane flight 186, has not been integrated into Eutelsat’s commercial fleet. This decision was taken as a result of a major anomaly which occurred during the satellite’s transfer from its test position to its operating position. W2M was subsequently located at 3° East under the control of Eutelsat, which received insurance compensation of 121 M€ during the financial year.

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