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EchoStar Reports Record Third Quarter Results

LITTLETON, Colo.--(BUSINESS WIRE)--Nov. 2, 1999--EchoStar Communications Corporation (EchoStar) (NASDAQ: DISH; DISHP) today reported total revenue of $427 million for the three months ended Sept. 30, 1999, an 82 percent increase in total revenue compared to the third quarter of 1998. EchoStar also reported pre-marketing cash flow of $153 million for the three months ended Sept. 30, 1999, as compared to $74 million for the corresponding period in 1998. EchoStar continued to experience record DISH Network subscriber growth during the third quarter of 1999, adding approximately 375,000 net subscribers, an increase of 65 percent over the third quarter of 1998, for a cumulative total of approximately 3.0 million subscribers as of Sept. 30, 1999.

Since EchoStar provides equipment subsidies which are fully expensed in the quarter during which a new subscriber is acquired, the record subscriber growth also resulted in increased marketing and operating costs. As expected, the strong growth therefore also resulted in earnings before interest, taxes, depreciation and amortization, and other non-cash deferred compensation (EBITDA) of negative $47 million during the third quarter of 1999, as compared to EBITDA of $9 million with smaller subscriber additions during the same period in 1998.

EchoStar's record subscriber growth likewise resulted in increased operating and net losses compared to the corresponding period in 1998. EchoStar reported an operating loss of $79 million for the three months ended Sept. 30, 1999, as compared to $15 million for the corresponding period in 1998 prior to the record subscriber growth. EchoStar's net losses totaled $124 million and $52 million during those same periods, respectively.

For more information about EchoStar, visit the investor relations section of our website at www.echostar.com.

Statement under the Private Securities Litigation Reform Act of 1995: All statements contained herein, as well as statements made in press releases and oral statements that may be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Among the factors that could cause our actual results to differ materially are the following: a total or partial loss of a satellite due to operational failures, space debris or otherwise; an unsuccessful launch or deployment of our fifth or sixth satellite, EchoStar V and EchoStar VI, respectively; a decrease in sales of digital equipment and related services to international direct-to-home or DTH service providers; a decrease in DISH Network subscriber growth; an increase in subscriber turnover; an increase in subscriber acquisition costs; impediments to the retransmission of local or distant broadcast network signals which could result from pending litigation or legislation; lower than expected demand for our delivery of local broadcast network signals; an unexpected business interruption due to the failure of third-parties to remediate Year 2000 issues; our inability to retain necessary authorizations from the FCC; an increase in competition from cable, direct broadcast satellite, other satellite system operators, and other providers of subscription television services; the introduction of new technologies and competitors into the subscription television business; a change in the regulations governing the subscription television service industry; the outcome of any litigation in which we may be involved; general business and economic conditions; and other risk factors described from time to time in our reports filed with the Securities and Exchange Commission. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "anticipates," "intends" or the like to be uncertain and forward-looking. All cautionary statements made herein should be read as being applicable to all forward-looking statements wherever they appear. In this connection, investors should consider the risks described herein and should not place undue reliance on any forward-looking statements.

EchoStar Communications Corp., includes three interrelated business units:

-- DISH Network™ is EchoStar's state-of-the-art direct broadcast satellite system that is capable of offering over 500 channels of digital video and CD-quality audio programming, fully MPEG-2/DVB compliant hardware and installation. DISH Network was also ranked number one in customer satisfaction among satellite/cable TV subscribers by the J.D. Power and Associates 1999 Cable/Satellite TV Customer Satisfaction Study.

-- EchoStar Technologies Corporation designs, manufactures and distributes DBS set-top boxes, antennas and other digital equipment for the DISH Network and various international customers that include ExpressVu Canada and the Via Digital system in Spain. ETC provides construction, oversight and project integration services for customers internationally. ETC also oversees EchoStar Data Networks Corporation in Atlanta, a leading supplier of MediaStream® technology for distributing Internet content over satellite networks.

-- Satellite Services provides the delivery of video, audio and data services to business television customers and other satellite users. These services include satellite uplink, satellite transponder space usage and other services. Satellite Services also administers SKY VISTA, a direct broadcast satellite service offering popular digital satellite television programming to viewers in Alaska, Hawaii, Puerto Rico and the U.S. territories in the Caribbean.

DISH Network, which currently serves over 3 million customers, is a trademark of EchoStar Communications Corporation. DISH Network is located on the Internet at www.dishnetwork.com. -0-

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                        SELECTED FINANCIAL DATA
                  EchoStar Communications Corporation
                 (Nasdaq National Market: DISH; DISHP)
         (In thousands, except subscribers and per share data)


Three Months Ended September 30, 1998 1999 (Unaudited)

Statements of Operations Data Revenue: DISH Network: Subscription television services $ 179,472 $ 356,439 Other 1,861 1,866 ----------- ----------- Total DISH Network 181,333 358,305 DTH equipment sales and integration services 44,191 48,809 Satellite services 5,485 13,386 C-band and other 4,398 6,996 ----------- ----------- Total revenue 235,407 427,496 Costs and Expenses: DISH Network Operating Expenses: Subscriber-related expenses 77,520 156,663 Customer service center and other 19,539 31,778 Satellite and transmission 7,080 10,547 ----------- ----------- Total DISH Network operating expenses 104,139 198,988 Cost of sales - DTH equipment and integration services 28,887 34,405 Cost of sales - C-band and other 3,331 4,435 Marketing: Subscriber promotion subsidies 57,629 180,891 Advertising and other 8,114 19,742 ----------- ----------- Total marketing expenses 65,743 200,633 General and administrative 24,797 40,649 Amortization of subscriber acquisition costs 1,964 -- Depreciation and amortization 21,896 27,841 ----------- ----------- Total costs and expenses 250,757 506,951 ----------- ----------- Operating loss $ (15,350) $ (79,455) =========== =========== Net loss $ (51,971) $ (124,401) =========== =========== Net loss attributable to common shares $ (60,880) $ (126,343) =========== =========== Weighted-average common shares outstanding 180,052 227,703 =========== =========== Basic and diluted loss per share $ (0.34) $ (0.55) =========== =========== Other Data Pre-marketing cash flow $ 74,253 $ 153,283 =========== =========== EBITDA $ 8,510 $ (47,350) =========== =========== DISH Network subscribers 1,609,000 2,972,000 =========== ===========



December 31, September 30, 1998 1999 (Unaudited) Balance Sheets Data Cash, cash equivalents and marketable investment securities $ 324,100 $ 198,749 Restricted cash and marketable investment securities 183,657 22,928 Total assets 1,806,852 2,807,957 Total current liabilities 430,777 607,645 Total long-term obligations, net of current portion 1,521,577 2,091,302



SELECTED FINANCIAL DATA EchoStar Communications Corporation (Nasdaq National Market: DISH; DISHP) (In thousands, except per share data) (Unaudited)

Nine Months Ended September 30, 1998 1999

Statements of Operations Data Revenue: DISH Network: Subscription television services $ 459,540 $ 923,263 Other 12,004 6,290 ----------- ----------- Total DISH Network 471,544 929,553 DTH equipment sales and integration services 192,030 108,551 Satellite services 15,854 31,127 C-band and other 16,256 17,507 ----------- ----------- Total revenue 695,684 1,086,738 Costs and Expenses: DISH Network Operating Expenses: Subscriber-related expenses 210,717 399,529 Customer service center and other 45,654 81,153 Satellite and transmission 17,792 30,852 ----------- ----------- Total DISH Network operating expenses 274,163 511,534 Cost of sales - DTH equipment and integration services 130,289 75,927 Cost of sales - C-band and other 12,555 11,878 Marketing: Subscriber promotion subsidies 159,799 451,464 Advertising and other 25,706 40,398 ----------- ----------- Total marketing expenses 185,505 491,862 General and administrative 67,979 102,822 Amortization of subscriber acquisition costs 18,869 -- Depreciation and amortization 59,083 78,841 ----------- ----------- Total costs and expenses 748,443 1,272,864 ----------- ----------- Operating loss $ (52,759) $ (186,126) =========== =========== Net loss $ (147,574) $ (572,861) =========== =========== Net loss attributable to common shares $ (173,603) $ (578,887) =========== =========== Weighted-average common shares outstanding 179,684 201,292 =========== =========== Basic and diluted loss per share $ (0.97) $ (2.88) =========== =========== Other Data Pre-marketing cash flow $ 210,698 $ 390,560 =========== =========== EBITDA $ 25,193 $ (101,302) =========== ===========





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