The DIRECTV Group Announces Second Quarter 2006 Results

Business Wire, August 8, 2006

FOOTNOTES

(1) Operating profit (loss) before depreciation and amortization,
    which is a financial measure that is not determined in accordance
    with accounting principles generally accepted in the United States
    of America, or GAAP, should be used in conjunction with other GAAP
    financial measures and is not presented as an alternative measure
    of operating results, as determined in accordance with accounting
    principles generally accepted in the United States of America.
    Please see each of The DIRECTV Group's and DIRECTV Holdings LLC's
    Annual Reports on Form 10-K for the year ended December 31, 2005
    for further discussion of operating profit (loss) before
    depreciation and amortization. Operating profit before
    depreciation and amortization margin is calculated by dividing
    operating profit before depreciation and amortization by total
    revenues.

(2) Free cash flow, which is a financial measure that is not
    determined in accordance with GAAP, is calculated by deducting
    amounts under the captions "Cash paid for property and equipment,"
    "Cash paid for satellites," "Cash paid for subscriber leased
    equipment - subscriber acquisitions," and "Cash paid for
    subscriber leased equipment - upgrade and retention" from "Net
    cash provided by (used in) operating activities" from the
    Consolidated Statements of Cash Flows. This financial measure
    should be used in conjunction with other GAAP financial measures
    and is not presented as an alternative measure of cash flows from
    operating activities, as determined in accordance
    with GAAP. The DIRECTV Group and DIRECTV U.S. management use free
    cash flow to evaluate the cash generated by DIRECTV U.S.' current
    subscriber base, net of capital expenditures, for the purpose of
    allocating resources to activities such as adding new subscribers,
    retaining and upgrading existing subscribers and for additional
    capital expenditures. The DIRECTV Group and DIRECTV U.S. believe
    this measure is useful to investors, along with other GAAP
    measures (such as cash flows from operating and investing
    activities), to compare DIRECTV U.S.' operating performance to
    other communications, entertainment and media companies. We
    believe that investors also use current and projected free cash
    flow to determine the ability of our current and projected
    subscriber base to fund required and discretionary spending and to
    help determine the financial value of the company.

(3) Cash flow before interest and taxes, which is a financial
    measure that is not determined in accordance with GAAP, is
    calculated by deducting amounts under the captions "Cash paid for
    property and equipment," "Cash paid for satellites," "Cash paid
    for subscriber leased equipment - subscriber acquisitions" and
    "Cash paid for subscriber leased equipment - upgrade and
    retention" from "Net cash provided by (used in) operating
    activities" from the Consolidated Statements of Cash Flows and
    then adding back net interest paid and "Cash paid (refunded) for
    income taxes." This financial measure should be used in
    conjunction with other GAAP financial measures and is not
    presented as an alternative measure of cash flows from operating
    activities, as determined in accordance with GAAP. The DIRECTV
    Group and DIRECTV U.S. management use cash flow before interest
    and taxes to evaluate the cash generated by DIRECTV U.S.' current
    subscriber base, net of capital expenditures, interest, and taxes,
    for the purpose of allocating resources to activities such as
    adding new subscribers, retaining and upgrading existing
    subscribers and for additional capital expenditures. The DIRECTV
    Group and DIRECTV U.S. believe this measure is useful to
    investors, along with other GAAP measures (such as cash flows from
    operating and investing activities), to compare DIRECTV U.S.'
    operating performance to other communications, entertainment and
    media companies. We believe that investors also use current and
    projected cash flow before interest and taxes to determine the
    ability of our current and projected subscriber base to fund
    required and discretionary spending and to help determine the
    financial value of the company.

(4) DIRECTV Latin America net subscriber additions exclude DIRECTV
    Latin America's subscriber activity in Mexico. DIRECTV Latin
    America cumulative subscribers exclude subscribers of the Sky
    Mexico service.