EchoStar Invests $50 Million in Gilat-To-Home to Offer First Two-Way Satellite Internet Access Combined with DISH Network Satellite Television on Single Dish - Company Business and Marketing

Cambridge Telcom Report, April 17, 2000

EchoStar Communications Corporation (Nasdaq: DISH, DISHP) Monday announced an investment of $50 million in Gilat-To-Home Inc. Gilat-To-Home, a joint venture whose partners now include EchoStar, Gilat Satellite Networks Ltd., (Gilat) (Nasdaq: GILTF) and Microsoft (Nasdaq: MSFT), plans to provide the nation's first consumer, two-way satellite, broadband Internet service later this year. With the investment, EchoStar will hold approximately a 17.6 percent stake in Gilat-To-Home.

EchoStar and Gilat previously announced an agreement to jointly offer consumers two-way, Ku-band, high-speed satellite Internet access along with hundreds of channels of EchoStar's DISH Network satellite television programming via a single small consumer dish.

Under the terms of the agreement, EchoStar will distribute the Gilat-To-Home broadband satellite Internet service powered by MSN along with DISH Network satellite TV service through its more than 23,000 retailers nationwide. DISH Network customers will have the opportunity to purchase "always on" access to the Internet with an MSN-Gilat-To-Home co-branded portal.

Gilat-To-Home two-way satellite service could provide Internet access at speeds up to 10 times faster than normal modem speeds, with burst rates considerably higher. Two-way satellite service offers significant benefits for consumers, including a persistent or "always on" connection that saves time over dial-up methods and eliminates the need for a second telephone line dedicated to Internet use. Gilat-To-Home will offer high-speed Internet connections to the consumer's PC via a single small dish. The same dish will be capable of receiving up to 500 channels of DISH Network satellite TV programming for the consumer's television, delivering a bundled service opportunity previously unavailable in the consumer market.

Under the terms of the agreement, EchoStar will provide installation for consumers through its nationwide DISH Network Service Corporation, which will install a unique, single dish that can simultaneously "see" satellite signals from three different orbital locations. The oblong dish, approximately 24 inches by 36 inches, will be capable of receiving and sending Internet data while at the same time receiving DISH Network satellite television channels, including the same services customers enjoy today from DISH Network's DISH 500 system, such as local channels, interactive channels and hundreds of program offerings.

"We hope that EchoStar's agreement and investment with Gilat-To-Home will bring high-speed Internet access and hundreds of television channels into rural communities and other areas which may not be served by terrestrial broadband technology for years to come," said Charlie Ergen, CEO and chairman of EchoStar. "Gilat is a leader in providing two-way satellite Internet access technology, giving Gilat-To-Home a first-to-market position. That means DISH Network subscribers will have access to great technology from a team that has shown it can deliver. It makes sense to formalize the relationship with Gilat-To-Home and have a solid foundation for a long-term relationship."

"We look forward to building a strong marketing team with EchoStar and its highly effective DISH Network retail presence," said Zur Feldman, CEO of Gilat-To-Home.

"We welcome EchoStar to the MSN/Gilat team, and look forward to our successful market introduction late this year," said Yoel Gat, chairman and CEO of Gilat Satellite Networks.

"We have received very positive feedback in early trials of the MSN Gilat-To-Home service," said Yusuf Mehdi, vice president of marketing in Microsoft's Consumer Group. "This solution makes it possible for more consumers to get high speed access to MSN's Everyday Web services and we look forward to making it broadly available later this year."

The Gilat-To-Home services will be available in a variety of monthly packages and will be introduced to the consumer marketplace late this year.

EchoStar Communications Corporation includes three interrelated business units:

-- DISH Networkis 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, including Dolby Digital surround sound, high-speed interactive television and data services, all on a single dish, as well as offering fully MPEG-2/DVB compliant hardware and installation. DISH Network was 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 will launch the EchoStar VI satellite in the spring of 2000 that will offer DISH Network customers expanded programming services, local channels, Dolby Digital surround sound, interactive television and more.

-- EchoStar Technologies Corporation designs, distributes and oversees the manufacturing of DBS set-top boxes, antennas and other digital equipment for DISH Network and various international customers that include Bell 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 designer of broadband IP streaming products and services for DISH Network.