EchoStar's DISH Networkô Reports Strong Subscriber Growth

DISH Network Continues Record Pace As Fastest-Growing DBS Service

3-May-01

EchoStar Communications Corporation (NASDAQ: DISH, DISHP) announced that DISH Networkô maintained its position as the fastest-growing direct broadcast satellite (DBS) TV entertainment provider in the United States, adding approximately 460,000 net new subscribers in the first quarter ended March 31, 2001. DISH Network had approximately 5.72 million subscribers as of March 31, 2001, a 48 percent increase over the approximately 3.865 million subscribers as of March 31, 2000. EchoStar reported total revenue of $862 million for the quarter ended March 31, 2001, compared to $566 million for the corresponding period in 2000. Pre-marketing cash flow grew to $351 million during the first quarter ended March 31, 2001, compared to $186 million during the first quarter ended March 31, 2000. DISH Network also experienced positive earnings before interest, taxes, depreciation and amortization (EBITDA). For the quarter ended March 31, 2001, EBITDA totaled $51 million, an improvement of $139 million compared to EBITDA of negative $88 million for the corresponding period in 2000. The EBITDA improvement resulted primarily from the continued increase in the number of DISH Network subscribers, higher average revenue per subscriber and the introduction of DISH Network's Digital Home Plans during July 2000. EchoStar incurred substantial up-front acquisition costs in connection with continued record subscriber growth. However, operating and net losses narrowed significantly as revenue from EchoStar's 5.72 million DISH Network customers continued to grow and operating efficiencies were achieved. EchoStar's operating loss for the quarter ended March 31, 2001, was reduced to $15 million, compared to an operating loss of $142 million reported during the corresponding period in 2000. The company's net losses totaled $75 million for the first quarter of 2001, excluding the impact of a $92 million nonrecurring charge recorded during the quarter to reduce the carrying value of certain strategic investments impacted by the capital market changes over the past year. The net loss including the nonrecurring charge was $167 million. Comparatively, EchoStar recorded a net loss of $185 million during the first quarter of 2000. For more information about EchoStar, visit www.echostar.com. For more information about DISH Network, visit www.dishnetwork.com.

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