We investigate the properties of satellite galaxies formed in N-body/SPH simulations of galaxy formation in the \Lambda CDM cosmology . The simulations include the main physical effects thought to be important in galaxy formation and , in several cases , produce realistic spiral discs . In total , a sample of 9 galaxies of luminosity comparable to the Milky Way was obtained . At magnitudes brighter than the resolution limit , M _ { V } = -12 , the luminosity function of the satellite galaxies in the simulations is in excellent agreement with data for the Local Group . The radial number density profile of the model satellites , as well as their gas fractions also match observations very well . In agreement with previous N-body studies , we find that the satellites tend to be distributed in highly flattened configurations whose major axis is aligned with the major axis of the ( generally triaxial ) dark halo . In 2 out of 3 systems with sufficiently large satellite populations , the satellite system is nearly perpendicular to the plane of the galactic disc , a configuration analogous to that observed in the Milk Way . The discs themselves are perpendicular to the minor axis of their host halos in the inner parts , and the correlation between the orientation of the galaxy and the shape of the halo persists even out to the virial radius . However , in one case the disc ’ s minor axis ends up , at the virial radius , perpendicular to the minor axis of the halo . The angular momenta of the galaxies and their host halo tend to be well aligned .