PanAmSat’s Galaxy 3R to Be Removed from Service

Satellite Had No Remaining Book Value; In Orbit Anomaly Leads to Satellite Retirement

Wilton, CT, 23 January 2006

PanAmSat (NYSE: PA) today announced that the Galaxy IIIR domestic satellite, operating in an inclined orbit at 74 deg W, experienced an anomaly of its secondary spacecraft control processor (SCP). PanAmSat and the satellite manufacturer, Boeing Satellite Systems Inc., are continuing to investigate the anomaly.

“Galaxy 3R had already been removed from primary service,” said Joe Wright, CEO of PanAmSat. “This satellite was at the end of its contract life and operating in an inclined orbit. We do not expect that this occurrence will have any impact on our proposed transaction with Intelsat or will meaningfully affect the day-to-day operations of our business.”

A Boeing 601 spacecraft launched in 1995, Galaxy IIIR experienced an anomaly on its secondary SCP at 3:42 p.m. GMT on January 15. The satellite has no book value to the Company but was expected to remain in inclined orbit through early 2009.