Pegasus Communications Corporation Announces Sale of TV Stations WDBD and WXMS Serving Jackson, Mississippi and Sale of Construction Permit

Business Wire, April 10, 2003

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--April 10, 2003

Pegasus Also Announces New Affiliation Agreements With FOX

Broadcasting Company

Pegasus Communications Corporation (NASDAQ:PGTV) announced today that it has signed a definitive agreement to sell WDBD-TV and WXMS-LP (Jackson, MS) to Jackson Television, LLC for $13.4 million in cash.

$10.4 million of the purchase price will be received upon the sale of stations' assets other than their FCC licenses. It is anticipated that the sale of the non-FCC assets will occur by early May. The remainder of the sale price will be received upon the transfer of the stations' FCC licenses to the buyer.

The sale is contingent upon conditions typical of sales of this nature, including approval by the Federal Communications Commission of the transfer of the stations' broadcast licenses to the buyer. Pending transfer of the broadcast licenses, the buyer will operate the stations pursuant to a local marketing agreement with Pegasus.

In an agreement entered into concurrently with Pegasus' agreement to sell WDBD-TV/WXMS-LP, KB Prime Media, LLC has agreed to sell its construction permit for the construction of a new television station, Channel 35, Vicksburg, MS, and related assets, and Pegasus Satellite Communications, Inc. (PSC) has agreed to waive its option to acquire and permit the sale of Channel 35 to Mississippi Television, LLC for aggregate consideration of $4.1 million.

KB holds a number of television station licenses and permits. PSC has the exclusive option to acquire all of KB's stations and permits. As a result of the sale, PSC will benefit immediately from the sale by receiving approximately $1.4 million in cash from the buyer and will also be able to reduce certain bank guarantees in an amount equal to approximately $2.7 million.

The sale is contingent upon conditions typical of sales of this nature, including approval by the Federal Communications Commission.

Pegasus also announced today that it has signed new affiliation agreements with FOX Broadcasting Company, a subsidiary of The News Corporation Limited, for its three FOX network affiliated television stations: WOLF-TV (Wilkes Barre-Scranton, PA); WDSI-TV (Chattanooga, TN); and WTLH-TV (Tallahassee, FL).

These television stations had been operating as FOX affiliates since 1999 under expired affiliation agreements. The new affiliation agreements have initial terms that expire on June 30, 2005.

About Pegasus

Pegasus Communications Corporation (www.pgtv.com) provides digital satellite television to rural households throughout the United States. Pegasus owns and/or operates television stations affiliated with CBS, FOX, UPN and The WB networks.