DISH Network and DIRECTV File Suit in Kentucky Challenging Constitutionality of Satellite Tax

05/05/2005
FOR IMMEDIATE RELEASE

Contact: Bob Marsocci, DIRECTV, Inc., (310) 726-4656
Steve Caulk, EchoStar Communications Corp., (303) 723-2010

Protecting Satellite TV Subscribers, DISH Network and DIRECTV File Suit in Kentucky Challenging Constitutionality of Satellite Tax

Suit Claims Discrimination Against Satellite TV Subscribers While Local Cable is Given Favorable Tax Treatment

ENGLEWOOD, Colo., and EL SEGUNDO, Calif., May 5, 2005 - Defending the rights of hundreds of thousands of satellite TV subscribers in Kentucky, DIRECTV Inc., and EchoStar Communications Corporation and its DISH Network, the leading providers of satellite TV service in the nation, have filed suit in the U.S District Court for the Eastern District of Kentucky, challenging the constitutionality of provisions of a tax law enacted last month that would impose discriminatory taxes against satellite TV services in favor of competing services sold by cable television companies.

"This lawsuit is about protecting our customers - many of whom dropped cable for satellite television - throughout the state of Kentucky," said Mike Palkovic, chief financial officer, DIRECTV, Inc. "Why should they be penalized for choosing the only viable choice to cable? Imposing a statewide tax on satellite TV companies discriminates against interstate commerce in violation of the Commerce Clause of the U.S. Constitution. Beyond the legal implications, this new law is simply unfair to Kentucky consumers who subscribe to satellite television, since they will bear the brunt of this new tax."

The new law superficially imposes the same rate of excise and gross revenue taxes on satellite companies as it does on cable; but in reality, satellite companies will be taxed at a substantially higher rate than their cable counterparts. Cable companies are using their local franchise fees - a simple cost of doing business that gives them the right to tear up city streets and use utility poles - to offset the cable companies' overall tax obligation. Satellite companies, in contrast, pay the full amount of the tax, without any offsets. The result is added expense for satellite customers, compared with cable customers.

"Satellite TV provides an affordable alternative to rising cable rates in states where the two services compete on a level playing field," said David Rayner, chief financial officer for EchoStar. "Kentucky residents will have less robust competition in the pay-TV marketplace as a result of the cable-sponsored special tax recently placed on satellite service. We will continue to oppose unconstitutional and anti-consumer laws that put satellite at a competitive disadvantage to cable."

While the majority of states do not discriminate between the taxation of satellite and cable television services, a handful of states have attempted to pass satellite tax legislation - usually with little success. The satellite television industry has aggressively pursued legal action against states imposing discriminatory taxes. DISH Network and DIRECTV encourage their customers and the hundreds of retailers in the state to contact the state agencies and legislators to voice their disapproval. Satellite TV subscribers across the country can visit www.stopsatellitetax.com for more information on how to stop unfair satellite TV taxes in their state.

About DIRECTV
DIRECTV, Inc., the nation's leading satellite television service provider, presents the finest television experience available to more than 16.3 million customers in the United States, through exclusive content, industry-leading customer satisfaction (which has surpassed cable for seven years running) and superior technologies. Each day, DIRECTV subscribers enjoy access to over 250 channels of 100% digital picture and sound, exclusive programming and the most comprehensive collection of sports programming available anywhere, including NFL SUNDAY TICKET(TM) and MLB EXTRA INNINGS(R). DIRECTV (NYSE:DTV) also leads the digital television technology revolution with exclusives such as NFL SUNDAY TICKET SuperFan(TM), US OPEN Interactive and YES Network Interactive, and will soon have the capacity to offer over 150 channels in HD. For the most up-to-date information on DIRECTV, please visit directv.com.

About EchoStar Communications Corporation
EchoStar Communications Corporation (Nasdaq: DISH) has been a leader for more than 27 years in satellite TV equipment sales and support worldwide. The Company's DISH Network® is the fastest-growing pay-TV provider in the country since 2000, providing more than 13.585 million satellite TV customers with industry-leading customer satisfaction which has surpassed major cable companies for seven years running. DISH Network customers also enjoy access to a premier line of award-winning Digital Video Recorders (DVRs), hundreds of video and audio channels, the most International channels in the U.S., industry-leading Interactive TV applications, Latino programming, and the best sports and movies in HD. DISH Network offers a variety of package and price options including the lowest all-digital price in America, the DishDVR Advantage Package, high-speed Internet service, a free upgrade to the best HD DVR in the industry, and six months free of DishHD. EchoStar is included in the Nasdaq-100 Index (NDX) and is a Fortune 300 company. Visit www.echostar.com or call 1-800-333-DISH (3474) for more information.