EchoStar Settles Nine-Year Litigation With Networks

ENGLEWOOD, August 28:
EchoStar Communications Corporation will shell out $100 million to settle its
nine-year litigation with the ABC, NBC, CBS and Fox affiliate associations.

Under terms of the
settlement, EchoStar will expand its local network channel service from
approximately 165 markets to 175 markets by the end of 2006, reaching 95
percent of the U.S. population. EchoStar also agreed to pay the affiliate
associations $100 million to protect its subscribers from the potential shut
off of those stations that originate from a market outside the community in
which the subscriber lives. At present, less than one million of EchoStar’s 12
million subscribers receive these “distant network” channels.

During the nine-year
course of litigation, EchoStar previously settled with hundreds of TV stations
and station groups, including the ABC, NBC and CBS networks. With today's
announcement, EchoStar has reached settlements with almost 800 stations. FOX
Network has declined EchoStar's universal settlement offer and has pulled out
of the discussions. As a result, litigation with approximately 25 Fox
owned-and-operated stations continues.