We investigated the effect of satellite classes as a component of blended learning, to enhance student performance of the Business Management I and Management I students at an open and distance-learning university. We discuss the evolution of distance education, the interactivities promoted by open and distance learning and the concept of blended learning. The main question addressed is whether student performance in two first-year modules, Business Management I and Management I, is affected by attendance of satellite classes offered by the University of South Africa. Although a blended learning strategy is already in place, the offering of satellite classes--another component of blended learning--has become one of the intervention strategies of the institution, aimed at improving student enrolment, retention, progress and completion rates. A case is argued for the utilization of satellite classes in support of open and distance learning. Analyses of variance and multiple comparisons of means tests were conducted to evaluate the potential impact of satellite class attendance on student performance. Results showed that the attendance of satellite classes had made a significant difference to the performance levels of distance education students in the two courses that were investigated. The findings have important educational, economic and organisational implications.