FCC Approves Sale of PanAmSat

WILTON, Conn. -- PanAmSat Corporation (Nasdaq: SPOT) today announced that, on August 11, the Federal Communications Commission approved the sale of PanAmSat to affiliates of Kohlberg Kravis Roberts & Co., L.P., The Carlyle Group and Providence Equity Partners, Inc. The FCC approval was the last in a series of regulatory approvals needed for the completion of the transaction.

The DIRECTV Group, Inc. also announced today that it has reached an agreement with affiliates of Kohlberg Kravis Roberts & Co., L.P., The Carlyle Group and Providence Equity Partners, Inc. relating to the pending transaction involving PanAmSat, which resolves the effect of the xenon ion propulsion failure of Galaxy 10R, a PanAmSat satellite, which was announced last week, and other issues. The agreement reduces the purchase price payable to The DIRECTV Group for its equity interest in PanAmSat upon completion of the transactions by $200 million to approximately $2.6 billion. The agreement does not affect the $23.50 per share purchase price to be paid to the other PanAmSat shareholders.

It is expected that PanAmSat shareholders will approve the transaction at their annual meeting on August 13, which will permit the parties to close the merger with a subsidiary of The DIRECTV Group on Wednesday, August 18 and the purchase of stock from The DIRECTV Group on Friday, August 20, assuming the satisfaction of other closing conditions.

"Now that we have received all necessary approvals, we are looking forward to the ultimate completion of the deal next week," said Joe Wright, president and CEO of PanAmSat. "We look forward to a great future with our new owners."