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EchoStar Reports Record Second Quarter Results

    Business Editors & High Tech Writers

    LITTLETON, Colo.--(BUSINESS WIRE)--Aug. 9, 1999--EchoStar Communications Corporation (EchoStar) (NASDAQ: DISH; DISHP) today reported total revenue of $350 million for the three months ended June 30, 1999, a 42% increase in total revenue compared to the second quarter of 1998. EchoStar also reported pre-marketing cash flow of $129 million for the three months ended June 30, 1999, as compared to $76 million for the corresponding period in 1998. Earnings before interest, taxes, depreciation and amortization, and other non-cash deferred compensation (EBITDA) totaled negative $23 million during the second quarter of 1999 as compared to EBITDA of $8 million during the same period in 1998. EchoStar continued to experience strong DISH Network subscriber growth during the second quarter of 1999, adding approximately 332,000 net subscribers, an increase of 84 percent over the second quarter of 1998, for a cumulative total of approximately 2.6 million subscribers as of June 30, 1999.

With record subscriber growth, EchoStar experienced increased upfront acquisition costs resulting in increased operating and net losses compared to the corresponding period in 1998. EchoStar reported an operating loss of $51 million for the three months ended June 30, 1999, as compared to $16 million for the corresponding period in 1998. The Company's net losses totaled $76 million and $46 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 the EchoStar V and EchoStar VI satellites; 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 DBS system that
offers customers over 300 channels of digital video and
CD-quality audio programming, fully MPEG-2/DVB compliant hardware
and installation.

-- 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 Telefonica's Via
Digital system in Spain. ETC also provides uplink center design,
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 over 27 channels of popular digital satellite television
programming to viewers in Alaska, Hawaii, Puerto Rico and the
U.S. territories in the Caribbean.

DISH Network currently serves over 2.7 million customers. DISH Network is a trademark of EchoStar Communications Corporation. DISH Network is located on the Internet at: www.dishnetwork.com




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



Three Months Ended June 30, --------------------------- 1998 1999 ---------- ---------- (Unaudited) Statements of Operations Data Revenue: DISH Network: Subscription television services $ 151,527 $ 306,023 Other 3,508 2,161 ---------- ---------- Total DISH Network 155,035 308,184 DTH equipment sales and integration services 80,445 27,073 Satellite services 5,774 9,764 C-band and other 4,584 4,857 ---------- ---------- Total revenue 245,838 349,878 Costs and Expenses: DISH Network Operating Expenses: Subscriber-related expenses 69,388 132,721 Customer service center and other 14,380 25,266 Satellite and transmission 5,460 10,859 ---------- ---------- Total DISH Network operating expenses 89,228 168,846 Cost of sales - DTH equipment and integration services 53,895 18,606 Cost of sales - C-band and other 3,282 3,393 Marketing: Subscriber promotion subsidies 58,205 142,965 Advertising and other 9,339 8,967 ---------- ---------- Total marketing expenses 67,544 151,932 General and administrative 23,488 32,150 Amortization of subscriber acquisition costs 5,886 -- Depreciation and amortization 18,759 25,940 ---------- ---------- Total costs and expenses 262,082 400,867 ---------- ---------- Operating loss $ (16,244) $ (50,989) ========== ========== Net loss $ (45,717) $ (76,129) ========== ========== Net loss attributable to common shares $ (54,394) $ (78,014) ========== ========== Weighted-average common shares outstanding 89,874 97,234 ========== ========== Basic and diluted loss per share $ (0.61) $ (0.80) ========== ========== Other Data Pre-marketing cash flow $ 75,945 $ 128,602 ========== ========== EBITDA $ 8,401 $ (23,330) ========== ========== DISH Network subscribers 1,382,000 2,597,000 ========== ==========

December 31, June 30, 1998 1999 ---------- ---------- Balance Sheets Data (Unaudited) Cash, cash equivalents and marketable investment securities $ 324,100 $ 385,287 Restricted cash and marketable investment securities 183,657 -- Total assets 1,806,852 2,903,402 Total current liabilities 430,777 581,909 Total long-term obligations, net of current portion 1,521,577 2,090,193



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

Six Months Ended June 30, --------------------------- 1998 1999 ---------- ----------

Statements of Operations Data Revenue: DISH Network: Subscription television services $ 280,068 $ 566,824 Other 10,143 4,424 ---------- ---------- Total DISH Network 290,211 571,248 DTH equipment sales and integration services 147,839 59,742 Satellite services 10,369 17,741 C-band and other 11,858 10,511 ---------- ---------- Total revenue 460,277 659,242 Costs and Expenses: DISH Network Operating Expenses: Subscriber-related expenses 133,197 242,866 Customer service center and other 26,115 49,375 Satellite and transmission 10,712 20,305 ---------- ---------- Total DISH Network operating expenses 170,024 312,546 Cost of sales - DTH equipment and integration services 101,402 41,522 Cost of sales - C-band and other 9,224 7,443 Marketing: Subscriber promotion subsidies 102,170 270,573 Advertising and other 17,592 20,656 ---------- ---------- Total marketing expenses 119,762 291,229 General and administrative 43,182 62,173 Amortization of subscriber acquisition costs 16,905 -- Depreciation and amortization 37,187 51,000 ---------- ---------- Total costs and expenses 497,686 765,913 ---------- ---------- Operating loss $ (37,409) $ (106,671) ========== ========== Net loss $ (95,603) $ (448,460) ========== ========== Net loss attributable to common shares $ (112,723) $ (452,544) ========== ========== Weighted-average common shares outstanding 89,748 93,934 ========== ========== Basic and diluted loss per share $ (1.26) $ (4.82) ========== ========== Other Data Pre-marketing cash flow $ 136,445 $ 237,277 ========== ========== EBITDA $ 16,683 $ (53,952) ========== ==========





     
     CONTACT:  EchoStar Communications Corp., Littleton
               Judianne Atencio, 303/723-2010
               judianne.atencio@echostar.com


KEYWORD: COLORADO INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED EARNINGS



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