EchoStar's DISH Networkô Reaches Agreements With Network Broadcasters, Station Groups

DISH Networkô To Continue Retransmitting Local Channels In 28 Cities

31-May-00

EchoStar Communications Corporation (NASDAQ: DISH, DISHP) announced that DISH Networkô, the fastest growing satellite TV provider in the nation, completed multi-year retransmission consent agreements prior to the statutory deadline with a majority of the broadcast groups in the 28 markets where EchoStar's DISH Network currently provides local television stations by satellite. Those agreements, together with contract negotiation extensions with other broadcasters ranging from a few weeks to several months, permit DISH Network to continue to broadcast 121 of the 125 local channels it has been offering to consumers. Regrettably, broadcasters forced DISH Network to shut off four channels: WTVF-CBS in Nashville, Tennessee, WFTC-FOX in Minneapolis, Minnesota, KTVX-ABC in Salt Lake City, Utah and WWOR-UPN in New York City. Despite the best efforts of EchoStar, station owners Chris Craft, Clear Channel, and Landmark Communications refused all reasonable efforts to reach agreement. The three groups similarly refused to grant reasonable extensions, mediate or otherwise work to protect consumers from shutoffs. EchoStar has filed Retransmission Consent Complaints asking that the Federal Communications Commission (FCC) require Chris Craft, Clear Channel and Landmark to negotiate in good faith so that the inconvenience to consumers is minimized. DISH Network customers impacted by these shutoffs will not be charged for any of their other satellite delivered local network stations. In addition, DISH Network will offer free off-air antennas for their affected customers by calling 800 333 DISH (3474). ""DISH Network is concerned that certain network broadcasters have abused the law and refuse to negotiate in good faith,"" said Charlie Ergen, Chairman and CEO of EchoStar. ""Landmark and Chris Craft refuse to allow consumers to watch their popular channels unless consumers also pay the costs for seldom-watched channels most consumers don't want. This tying is unfair to consumers. Clear Channel refuses to even discuss carriage of its channel on the DISH Network. By prohibiting EchoStar from carrying their channels, these individual stations are denying over 100,000 American consumers in Minneapolis, Nashville, New York, and Salt Lake City their right to watch local news, weather and sports by satellite. Consumers are being held hostage to the unreasonable terms demanded by these broadcasters who are using their local market monopoly power to try to extract unfair terms from EchoStar. We asked these broadcasters for an extension. We offered to mediate the disagreement. We offered to let the FCC decide but these broadcasters refused all attempts to protect consumers from shutoffs."" The Retransmission Consent Complaints filed by EchoStar with the FCC detail some of the most egregious actions by the stations including: refusal to negotiate retransmission consent, refusal to put forth more than a single unilateral proposal and/or consider some other form of consideration other than carriage of affiliated programming, and refusing to participate in mediation. In addition, these broadcasters have all refused to agree to even a short-term extension to protect consumers from shutoffs. ""The FCC should make clear that it will not tolerate discriminatory treatment by broadcasters and will ensure that retransmission consent negotiations are based on competitive marketplace considerations,"" continued Ergen. DISH Network began offering local channel signals in major metropolitan markets last November upon passage of the Satellite Home Viewer Improvement Act of 1999 (SHVIA). The law was designed ""to place satellite TV carriers on an equal footing with local cable operators when it comes to the availability of broadcast programming in order to spur competition in the video marketplace and give consumers more and better choices."" The legislation allowed DISH Network to offer local broadcast network signals to its customers for a six-month phase-in period while retransmission consent agreements were negotiated. SHVIA requires local TV stations to provide their programming on a non-exclusive basis and negotiate in good faith with satellite TV companies. The FCC also stated that SHVIA must be implemented ""aggressively to ensure that the pro-competitive goals underlying this important legislation are realized."" The FCC established a two-part test for ""good faith"" consisting of a brief, objective list of procedural standards for broadcast stations negotiating retransmission consent agreements. Under the second part of the good faith test, a satellite TV company may present facts to the FCC that constitute a failure to negotiate in good faith. DISH Network encourages DISH Network viewers in Minneapolis, Nashville, New York, and Salt Lake City to call their congressional representatives and local TV station managers today. Viewers should demand that broadcasters negotiate fairly with satellite TV providers so consumers can maintain their right to watch their local news, weather and sports on their local channels via satellite. For more information, visit www.dishnetwork.com/locals. DISH Network offers local programming in 28 major metropolitan markets. DISH Network is EchoStar's state-of-the-art DBS system with the capacity to offer customers 500 channels of digital video and CD-quality audio programming as well as fully MPEG-2/DVB compliant hardware and installation. DISH Network, a trademark of EchoStar Communications Corporation, currently serves over four million customers nationwide. DISH Network was ranked number one in customer satisfaction among satellite/cable TV subscribers by J.D. Power and Associates in 1999. EchoStar is included in the NASDAQ-100 Index (NDX) which contains the largest non-financial companies on the NASDAQ Stock Market. For more information, contact 800 333 DISH (3474) or visit www.dishnetwork.com.

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