EchoStar Communications Corporation Completes Acquisition Of Assets From News Corporation,MCI WorldCom

EchoStar Communications Corporation has announced that it has completed the acquisition of high-power direct broadcast satellite (DBS) assets from The News Corporation Limited and MCI WorldCom.Those assets include: the FCC license to operate a high-powered DBS business at the 110 degree West Longitude orbital location consisting of 28 frequencies; two high-power Local-built satellites, currently scheduled to be launched during 1999, to be delivered in-orbit; and other related assets and rights.The New Corporation Limited received 6,891,096 newly issued shares of EchoStar Class A Common Stock and MCI WorldCom received 1,712,020 newly issued shares of EchoStar Class A Common Stock. The total of 8,603,116 shares, which is approximately 14.6 percent of EchoStarís fully diluted equity and approximately 2.6 percent of total voting rights, reflects the agreed transaction value of approximately $1.2 billion, based on the recent average price of EchoStarís Class A Common Stock, reduced by approximately $45.6 million due form News and MCI to EchoStar in fulfillment of certain obligations in the acquisition agreement.Consummation of the transaction gives EchoStarís DISH Networkô access to a total of 50 high-power DBS frequencies at 110 degrees W.L. and 119 degrees W.L., capable of providing over 500 channels of video and audio programming, Internet/data and HDTV to the entire continental United States from a single 18-inch satellite dish. The additional capacity also positions DISH Network to expand its one-dish solution for local-to-local channels from Los Angels and New York currently, to cover 50 percent of the U.S. population.In addition, upon closing of the acquisition, the litigation between EchoStar and The News Corporation was dismissed with prejudice.""This transaction strengthens EchoStarís position as an alternative to rising cable prices and poor cable service,"" said Charlie Ergen, CEO and Chairman of EchoStar. ""DISH Network has experienced record growth in 1999, and the completion of this transaction will build on that even more. With this added capacity, we plan to offer consumers even more choices like HDTV, interactive television, Internet and data, 500 channels of televisionÖall delivered direct to homes through one small satellite dish.""