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WHY INVEST IN EUTELSAT COMMUNICATIONS?

To be a partner of one of the world's leading satellite operators
Eutelsat Communications is Europe's leading satellite operator and one of the top three global providers of Fixed Satellite Services (FSS). Operating a fleet of 24 satellites covering two thirds of the world, Eutelsat Communications generates 80% of its business from digital broadcasting and broadband markets. Via our HOT BIRD™ satellites at 13° East, Eutelsat manages the leading video neighbourhood for channel broadcasting, with 1,141 channels and interactive services at December 31, 2007.

The Group's operational and financial performance highlights the exceptional attraction of our satellite neighbourhoods and our ability to capitalise on digital broadcasting and broadband services, the two most dynamic activities in the Fixed Satellite Services sector.

To join a long-term profitable growth strategy
Since its creation in 1977, Eutelsat has built a privileged competitive position thanks to a high quality client base and key market shares both in Western Europe and in emerging markets.

Since our IPO in 2005, the Group has pursued a strategy focused on enhancing in-orbit resources for video applications and developing a pole of value-added services. Eutelsat Communications is the reference provider of Fixed Satellite Services, and will remain so for the years to come. With continual investment to maintain the fleet at its highest level, the Group will always have the best satellites to serve the markets with the highest potential.

This strategic direction is founded on the prospect of long-term growth in digital broadcasting and broadband markets. It is also fully aligned with the Group’s strategy of focusing on the most profitable sectors of the Fixed Satellite Services.

To invest in a highly profitable business model, that is sustainable and has strong visibility
75% of Eutelsat Communications revenues are generated by video applications with long-term contracts. Visibility on revenues is strong: the backlog represents 4.3 times annual revenues, with the average residual duration of leases exceeding 7 years. Many contracts are signed for the satellite’s lifetime, generally a period of 15 years.

We have the sector’s best profitability: during the first half of the year, ending December 31, 2007, our EBITDA (*) margin amounted to 81.3%.

Based on the regularity of our performance, which demonstrates the effectiveness of the business model and the quality of strategic vision, Eutelsat Communications has clear objectives: average annual growth above 5.5% for the next 3 fiscal years, with an EBITDA margin exceeding at least 77% of revenues.

Futhermore, Eutelsat's satellites use solar energy, giving people all the space they need to communicate, while protecting the environment.

(*) EBITDA is defined as the operating result before amortisation and depreciation and other operating income and expenses (impairment of assets, dilution profits (losses), insurance indemnities, etc).

To take advantage of promising new sources of growth
The growth potential of Fixed Satellite Services is huge. According to Euroconsult, the global number of channels broadcast via satellite should double before 2016, to reach 34,000, and the Group has other new sources of growth:

• of the 34,000 channels predicted by 2016 in the Euroconsult study, high definition (HDTV) will represent 20% of this digital offer, with nearly 7,000 HD channels worldwide. HDTV channels are developing progressively. At the end of 2007, Eutelsat Communications was already broadcasting 31 HD channels;
• TV to mobile devices: the opening of the S-band via satellite in Europe, in 2009, should significantly strengthen resources for mobile communication operators, for the development of TV broadcasting to mobile devices and interactive services to Galileo-equipped vehicles. Eutelsat Communications has joined forces with its competitor SES Global to set up the first S-band capacity in Europe on one of its future satellites;
• consumer broadband market: during the first half 2007-2008, Eutelsat launched a major initiative designed to bring consumer satellite broadband services in line with ADSL in terms of cost and speed. This unique technological solution for regions not served by terrestrial broadband networks has already established itself in a market with strong potential, which is predicted to involve more than 15 million households across Europe and the Mediterranean Basin in 2010. It will also provide new opportunities for local and regional television markets. The objective of this new infrastructure is to generate average annual revenues of around 100 million euros beyond the 2011-2012 fiscal year.

To enjoy an attractive remuneration
The Group’s sound financial structure, high-quality performance and visibility on its future, not only enables us to lead a significant investment programme that supports long-term growth, but also to offer an attractive remuneration policy to our shareholders.

Our policy is to pay a dividend representing between 50% and 75% of net income Group share over the 2007-2010 period. The dividend paid for the 2006-2007 fiscal year amounted to 0.58€ per share, up 7.4% compared to the previous fiscal year.

Last updated: 16/04/08