EchoStar Reports Record Results for First Quarter; DISH Network Sets Record for Subscriber Growth - Company Financial Information

Cambridge Telcom Report, May 1, 2000

EchoStar Communications Corporation (NASDAQ:DISH)(NASDAQ:DISHP) announced Thursday that it continued to experience record-setting customer growth for its DISH Network satellite television service during the first quarter of 2000, adding approximately 455,000 net subscribers and ending the quarter with approximately 3.865 million subscribers as of March 31, 2000.

DISH Network has now currently grown to over 4 million customers, less than seven months after reaching 3 million subscribers, maintaining DISH Network's position as the fastest growing direct broadcast satellite (DBS) television provider in the United States. DISH Network's first quarter subscriber growth was 40 percent greater than the number of net new customers added in the first three months of 1999.

EchoStar reported total revenue of $566 million for the quarter ended March 31, 2000, compared to $310 million for the corresponding period in 1999. Pre-marketing cash flow grew to $186 million during the first quarter ended March 31, 2000, compared to $109 million during the first quarter ended March 31, 1999. With record customer growth, EchoStar experienced increased upfront acquisition costs, resulting in increased operating and net losses compared to the corresponding period in 1999. Consequently, EchoStar's operating loss for the quarter ended March 31, 2000, totaled $142 million compared to $56 million reported during the corresponding period in 1999. The Company's net losses totaled $185 million for the first quarter of 2000 compared to a net loss of $372 million during the corresponding period in 1999. (Note: The net loss for the first quarter in 1999 included a one-time extraordinary charge of approximately $269 million related to the early retirement of debt.) Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended March 31, 2000, totaled negative $88 million, compared to EBITDA of negative $31 million for the corresponding period in 1999. The increased losses principally resulted from EchoStar's rapid subscriber growth, together with EchoStar's continuing strategy to subsidize rapid subscriber acquisitions.

FMI: www.echostar.com.

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, 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.

-- Satellite Services provides the delivery of interactive video, audio and data services to business television customers and other satellite users. These services include satellite uplink, satellite transponder space usage, business solutions and other services.

DISH Network is a trademark of EchoStar Communications Corporation. EchoStar is included in the Nasdaq-100 Index (NDX) which contains the largest non-financial companies on the Nasdaq Stock Market. 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 March 31,
                                     -----------------------------
                                             2000         1999
                                     -----------------------------
                                               (Unaudited)
Statements of Operations Data
Revenue:
  DISH Network:
Subscription television services        $   476,874   $   261,016
Other                                         1,313         2,263
                                        -----------   -----------
  Total DISH Network                        478,187       263,279
  DTH equipment sales and
   integration services                      62,704        32,669
  Satellite services                         14,250         7,974
  C-band and other                           10,580         5,654
                                        -----------   -----------
Total revenue                               565,721       309,576

Costs and Expenses:
  DISH Network Operating Expenses:
Subscriber-related expenses                 201,574       110,357
Customer service center and other            56,049        24,109
Satellite and transmission                   12,476         9,446
                                        -----------   -----------
  Total DISH Network operating expenses     270,099       143,912
  Cost of sales - DTH equipment and
   integration services                      46,222        22,916
  Cost of sales - C-band and other            8,116         4,050
  Marketing:
Subscriber promotion subsidies              250,087       127,608
Advertising and other                        23,170        11,689
                                        -----------   -----------
  Total marketing expenses                  273,257       139,297
  General and administrative                 55,577        30,023
  Non-cash, stock based compensation         14,009            --
  Depreciation and amortization              40,458        25,060
                                        -----------   -----------
Total costs and expenses                    707,738       365,258
                                        -----------   -----------
Operating loss                          $  (142,017)  $   (55,682)
                                        ===========   ===========
Extraordinary charge for early
 retirement of debt, net of tax         $      --     $  (268,999)
                                        ===========   ===========
Net loss                                $  (185,130)  $  (372,331)
                                        ===========   ===========
Net loss attributable to common shares  $  (185,623)  $  (374,530)
                                        ===========   ===========
Weighted-average common shares outstanding  465,768       361,528
                                        ===========   ===========
Net loss per common share:
   Basic and diluted loss per share
before extraordinary charge             $     (0.40)  $     (0.30)
   Extraordinary charge                          --         (0.74)
                                        -----------   -----------
   Basic and diluted net loss           $     (0.40)  $     (1.04)
                                        ===========   ===========

Other Data
Pre-marketing cash flow                 $   185,707   $   108,675
                                        ===========   ===========
EBITDA                                  $   (87,550)  $   (30,622)
                                        ===========   ===========
DISH Network subscribers                  3,865,000     2,265,000
                                        ===========   ===========

                                          March 31,   December 31,
                                            2000          1999
                                       ---------------------------
Balance Sheets Data
Cash, cash equivalents and
 marketable investment securities.      $ 1,050,908   $ 1,254,175
Restricted cash and marketable
 investment securities                        3,000         3,000
Total assets                              3,824,874     3,898,189
Total current liabilities                   948,738       896,909
Total long-term obligations, net
 of current portion                       3,053,995     3,049,698