EchoStar's DISH Network Reports Strong Subscriber Growth, Record EBITDA in First Quarter; DISH Network Continues Record Pace as Fastest-Growing DBS Service

Business Wire, May 3, 2001

Business Editors & Technology Writers

LITTLETON, Colo.--(BUSINESS WIRE)--May 3, 2001

EchoStar Communications Corporation (Nasdaq: DISH, DISHP) announced today that DISH Network maintained its position as the fastest-growing direct broadcast satellite (DBS) TV entertainment provider in the United States, adding approximately 460,000 net new subscribers in the first quarter ended March 31, 2001.

DISH Network had approximately 5.72 million subscribers as of March 31, 2001, a 48 percent increase over the approximately 3.865 million subscribers as of March 31, 2000.

EchoStar reported total revenue of $862 million for the quarter ended March 31, 2001, compared to $566 million for the corresponding period in 2000. Pre-marketing cash flow grew to $351 million during the first quarter ended March 31, 2001, compared to $186 million during the first quarter ended March 31, 2000. DISH Network also experienced positive earnings before interest, taxes, depreciation and amortization (EBITDA). For the quarter ended March 31, 2001, EBITDA totaled $51 million, an improvement of $139 million compared to EBITDA of negative $88 million for the corresponding period in 2000. The EBITDA improvement resulted primarily from the continued increase in the number of DISH Network subscribers, higher average revenue per subscriber and the introduction of DISH Network's Digital Home Plans during July 2000.

EchoStar incurred substantial up-front acquisition costs in connection with continued record subscriber growth. However, operating and net losses narrowed significantly as revenue from EchoStar's 5.72 million DISH Network customers continued to grow and operating efficiencies were achieved. EchoStar's operating loss for the quarter ended March 31, 2001, was reduced to $15 million, compared to an operating loss of $142 million reported during the corresponding period in 2000. The Company's net losses totaled $75 million for the first quarter of 2001, excluding the impact of a $92 million nonrecurring charge recorded during the quarter to reduce the carrying value of certain strategic investments impacted by the capital market changes over the past year. The net loss including the nonrecurring charge was $167 million. Comparatively, EchoStar recorded a net loss of $185 million during the first quarter of 2000.

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 one or more satellites due to operational failures, space debris or otherwise; delays in the construction of our seventh, eighth or ninth satellites; an unsuccessful deployment of future satellites; inability to settle outstanding claims with insurers; a decrease in sales of digital equipment and related services to international direct-to-home service providers; a decrease in DISH Network subscriber growth; an increase in subscriber turnover; an increase in subscriber acquisition costs; an inability to obtain certain retransmission consents; our inability to retain necessary authorizations from the FCC; an inability to obtain patent licenses from holders of intellectual property or redesign our products to avoid patent infringement; an increase in competition from cable as a result of digital cable or otherwise, 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 and statements 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.