DIRECTV Can Continue to Market its Service And Activate Customers In Pegasus Territories; Bankruptcy Court Judge Denies Pegasus Request For Temporary Restraining Order

22-Jun-04

A federal judge in the U.S. bankruptcy court in Portland, Maine, today denied Pegasus' request for a temporary restraining order against DIRECTV to prevent DIRECTV from marketing its service directly to consumers in areas served by Pegasus Satellite Television, Inc. The court's ruling allows DIRECTV to continue to market its service and activate new customers in Pegasus territories. ""We are pleased that Judge Haines understood our position and is allowing DIRECTV to continue to offer a competitive multichannel alternative for millions of consumers in rural America,"" said Steve Cox, executive vice president, Sales, Distribution and Business Development, DIRECTV, Inc. On June 1, 2004, DIRECTV, Inc. and NRTC agreed to end NRTC's exclusive DIRECTV service distribution contract effective immediately. In connection with the agreement, NRTC's separate agreements with its members and affiliates, including Pegasus, for sale of DIRECTV services, were terminated, with an effective date of August 31, 2004. Pegasus Satellite Communications Corporation and certain of its subsidiaries, including Pegasus Satellite Television, Inc., filed a voluntary petition for relief under chapter 11 of the U.S. bankruptcy code on June 2, 2004. Until the effective date of the member and Pegasus contract terminations on August 31, 2004, DIRECTV will provide services through the NRTC to its members and Pegasus on a non-exclusive basis so that DIRECTV service to customers in NRTC territories will not be disrupted. For more information, please visit www.directv.com.

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