New Skies Sat (NYSE:NSE)
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New Skies Satellites B.V. (NYSE:NSE), the global
satellite communications company, today announced that it has entered
into an agreement to sell its Australian subsidiary, New Skies
Networks PTY Limited, which owns and operates two teleports in
Adelaide and Perth, Australia, to Multiemedia Limited, a provider of
next generation technology and communications services based in
Australia, for US$10 million. The transaction, which is subject to
customary closing conditions, is expected to close in late October
2005.
As part of the transaction, New Skies Satellites has agreed to
purchase teleport services from Multiemedia. In turn Multimedia,
currently a customer of New Skies Satellites through its NewSat
satellite services division, has agreed to procure additional
satellite capacity on New Skies' NSS-6 satellite, subject to the
availability of such capacity. NewSat currently provides satellite
broadband services on NSS-6 in Australia and the Middle East.
Dan Goldberg, New Skies' chief executive officer, said: "We are
very pleased with the agreement with Multiemedia, a strong player in
the Australia and Middle East satellite services sector. Our decision
to enter into this transaction is consistent with our successful
strategy of delivering complete solutions to our customers by working
with partner teleports - as opposed to wholly owned teleports - around
the world. We are confident that Multiemedia will continue to provide
the high level of services that New Skies Networks has always provided
and we look forward to continuing our strong business relationship
with them. We intend to use the proceeds from this transaction to
reduce our outstanding debt. In addition to strengthening our balance
sheet, we anticipate the transaction will be EBITDA neutral to
accretive, depending on our ability to supply Multiemedia with the
satellite capacity they have agreed to purchase from us as part of
this agreement."
Adrian Ballintine, chief executive officer of Multiemedia, said
"We have invested heavily over the past few years in building a solid
business foundation capable of delivering world class satellite
services to our customers. Acquiring New Skies Networks two modern
teleport facilities and experienced employee base greatly enhances our
capabilities and will help us to continue to expand our business."
About New Skies Satellites
New Skies Satellites is one of only four fixed satellite
communications companies with global satellite coverage, offering
data, video, Internet and voice communications services to a range of
telecommunications carriers, broadcasters, large corporations,
Internet service providers and government entities around the world.
New Skies has five satellites in orbit, one spacecraft under
construction (NSS-8) and ground facilities around the world. New Skies
Satellites B.V. is the main operating subsidiary of the Hamilton,
Bermuda based New Skies Satellites Holdings Ltd. (NYSE: NSE),
headquartered in The Hague, with offices in Hong Kong, New Delhi, Sao
Paulo, Singapore, Sydney and Washington, D.C. Further information is
available at www.newskies.com
About Multiemedia
Multiemedia has always been about delivering the latest and the
best, starting with client servers in the 80s, multimedia and internet
services in the 90s and satellite broadband today. The company was
established in 1987 and listed on the Australian Stock Exchange in
September 1999 (ASX code: MUL).
Australian-owned and headquartered in Melbourne, Multiemedia has
annual revenues of AU $50 million and employs over 60 people. The
company also has offices in Sydney and Dubai. Multiemedia has three
distinct business units:
1. NewSat delivers high-speed, two-way satellite broadband
services to organisations here and the Middle East / North African
region. NewSat brings together some of the worlds leading technology
and communications companies to provide superior broadband speed and
service and currently has coverage to 60% of the world's population.
2. MTD (Multie Technology Distribution) is a wholesale company
that imports and distributes computer hardware and software throughout
Australia through its 2,000 strong dealer network.
3. AirWORKS Media offers an innovative advertising delivery
concept by matching media to the moment of decision. Delivering
digital advertising content to stores and other points of sale
together with tailored complete media packages including posters,
floor graphics and shelf signage. It hold exclusive advertising
content rights within all Woolworths stores and Newspower Agencies.
For more information, visit www.multiemedia.com.au
Safe Harbor
Section 27A of the U.S. Securities Act of 1933 and Section 21E of
the U.S. Securities Exchange Act of 1934 provide a "safe harbor" for
forward-looking statements made by an issuer of publicly traded
securities and persons acting on its behalf. New Skies Satellites
Holdings Ltd. has made certain forward-looking statements in this
document in reliance on those safe harbors. A forward-looking
statement concerns the company's or management's intentions or
expectations, or are predictions of future performance. These
statements are identified by words such as "intends", "expects",
"anticipates", "believes", "estimates", "may", "will", "should" and
similar expressions. By their nature, forward-looking statements are
not a matter of historical fact and involve risks and uncertainties
that could cause New Skies' actual results to differ materially from
those expressed or implied by the forward-looking statements for a
number of reasons. Factors which may affect the future performance of
New Skies include: delays or problems in the construction or launch of
future satellites; technical performance of in-orbit satellites and
earth-based infrastructure; increased competition and changes in
technology; growth of and access to the company's target markets;
legal and regulatory developments affecting the company's business;
and worldwide business and economic conditions, among other things.
These risks and other risks affecting New Skies' business are
described in the company's periodic filings with the U.S. Securities
and Exchange Commission, including but not limited to New Skies'
Registration Statement on Form S-1 (File No. 333-122322). Copies of
these filings may be obtained by contacting the SEC. New Skies
disclaims any obligation to update the forward-looking statements
contained in this document.