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http://www.intelsat.com/aboutus/press/release_details.aspx?year=2004&art=20041129_01_EN.xml&lang=en&footer=80

Intelsat Reports Loss of Intelsat Americas -7

Pembroke, Bermuda, 28 November 2004
Intelsat, Ltd. today said that its Intelsat Americas™-7 satellite
experienced a sudden and unexpected electrical distribution anomaly
that caused the permanent loss of the spacecraft on November 28, 2004
at approximately 2:30 am EST. Consistent with existing satellite
anomaly contingency plans, Intelsat has made alternative capacity
available to most of its IA-7 customers, many of whom have already had
their services restored, reflecting Intelsat's intention to ensure a
smooth transition for its customers. Intelsat is working with Space
Systems/Loral, the manufacturer of the satellite, to identify the
cause of the problem. The satellite, which operated at 129° West, was
launched in September 1999 and covered the continental U.S., Alaska,
Hawaii, Canada, Central America, and parts of South America. The
satellite was self-insured by Intelsat.

The upcoming launch of the IA-8 satellite, currently scheduled to
occur on December 17, 2004, will provide 36 Ku-band, and 24 C-band,
equivalent transponders to the Intelsat North American fleet and help
mitigate the impact of the permanent loss of IA-7.

Under the terms of the Transaction Agreement and Plan of Amalgamation
for the sale of Intelsat, dated as of August 16, 2004, among Intelsat,
Ltd., Intelsat (Bermuda), Ltd., Zeus Holdings Limited, Zeus Merger One
Limited and Zeus Merger Two Limited, the total loss of the IA-7
satellite would give the purchasers the right not to consummate the
acquisition of Intelsat. The purchaser, Zeus Holdings Limited, has
advised Intelsat it is evaluating the impact of the IA-7 failure.

About Intelsat
Building on 40 Years of Leadership. As a global communications leader
with 40 years of experience, Intelsat helps service providers,
broadcasters, corporations and governments deliver information and
entertainment anywhere in the world, instantly, securely and reliably.
Intelsat's global reach and expanding solutions portfolio enable
customers to enhance their communications networks, venture into new
markets and grow their businesses with confidence.

For further information, please contact us at
media.relations@intelsat.com or at +1 202-944-7500.

Click here to subscribe to our news releases.

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,
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. Known
factors include, but are not limited to, our ability to transition
IA-7 customers to other satellites, the expected upcoming launch of
the IA-8 satellite on December 17, 2004 and the ability of additional
capacity on the IA-8 to mitigate the impact of the permanent loss of
IA-7. In connection with the proposed acquisition of Intelsat by Zeus
Holdings Limited, known factors include, but are not limited to, the
impact of the loss of IA-7 on the proposed acquisition and the need to
modify aspects of the proposed transaction as a result thereof, the
inability to obtain required regulatory approvals or the need to
modify aspects of the proposed transaction in order to obtain these
approvals; the inability of Zeus Holdings Limited to obtain financing
on the terms contemplated in the agreements relating to the proposed
transaction or at all; a change in the health of any of Intelsat's
other satellites or a catastrophic loss occurring during the in-orbit
operations of any of Intelsat's other satellites that causes a
condition precedent to the proposed transaction to fail to be
satisfied; and the inability to consummate the proposed transaction
for any other reason. Detailed information about other known risks is
included in Intelsat's annual report on Form 20-F for the year ended
December 31, 2003 on file with the U.S. Securities and Exchange
Commission. 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.

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