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1999 Satellite Broadcasting and Communications Association Show

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PAGE 3

EchoStar Touts New Products, Slams DirecTv’s Lobbying Efforts
EchoStar Communications offered the first look at its new two-LNB satellite dish yesterday that the company expects eventually will enable subscribers to receive 500 channels of programming from satellites at 110 degrees and 119 degrees. EchoStar has begun using its EchoStar-4 satellite to simulcast its main consumer service at 110 degrees. EchoStar plans to migrate its existing subscribers from 119 degrees to 110 degrees once it launches its EchoStar-5 satellite into 110 degrees, EchoStar chairman Charlie Ergen said. Once EchoStar-5 is operational, the company plans to offer a new programming package that likely would contain 150 channels of programming. EchoStar also announced it plans to launch a package of Spanish-language programming starting Aug. 3 that contains 14 video channels and four audio channels. The service will retail for $19.99 per month or $239.88 per year. Ergen also continued to rail against DirecTv’s legislative agreement with the National Association of Broadcasters. Ergen said it was “disingenuous” for DirecTv to say it wanted a quick resolution to the legislative activity in Washington because “last year when we had a chance for legislation, they fought against it.” DirecTv President Eddy Hartenstein “just didn’t have enough guts to stand up and say ‘Hey, we’re trying to screw the industry. We’re trying to screw rural America. We’re trying to screw EchoStar. And we’re lining our pockets and doing inside deals. It’s America. Why not?’ I think that’s fair. But if your going to do that, don’t get up there and act like you’re being a good guy.”

Hartenstein: DirecTv Hits Stride with Acquisitions, New Offers
DirecTv has put its “foot on the accelerator in the last six months” by going on a spending spree to acquire U.S. Satellite Broadcasting and Primestar, as well as making a string of other investments and agreements designed to boost the DBS company’s standing in the marketplace, DirecTv President Eddy Hartenstein said yesterday. “It’s been a breakneck pace,” he said. “Frankly we don’t see any signs of slowing down.” Hartenstein pointed to DirecTv’s record-breaking subscriber acquisition numbers as a sign the strategy is working. As expected, DirecTv said it would start offering a high-definition feed of HBO’s East Coast channel starting Aug. 1. DirecTv also announced its new consumer offer which offers new subscribers three free months of the Total Choice Platinum programming package when they purchase the NFL Sunday Ticket package for $159. DirecTv also said it acquired a 4 percent stake in Wink. During the press conference, Hartenstein largely steered clear of talking about the controversy that has emerged over DirecTv’s agreement with the National Association of Broadcasters. DirecTv’s attention is not focused on EchoStar, he said. “I spend most of my waking hours worrying about the dominant player, which is cable,” he said. Speaking later, Hartenstein reiterated comments he made earlier in the day that, while imperfect, the NAB agreement was necessary to move the legislative process forward. If no compromises were attempted, there was a risk legislation wouldn’t pass until late this year and in a form that only would offer a short-term extension of the current rules, he said. “Laws are never perfect and you have to make compromises,” Hartenstein said. “We think it’s a compromise we can live with.”

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