DISH Network and DIRECTV File Suit Against Ohio For Passing Discriminatory Satellite-Only Sales Tax

06/26/2003

FOR IMMEDIATE RELEASE
Bob Marsocci: DIRECTV, Inc., (310) 726-4656
Marc Lumpkin: EchoStar Communications Corp., (303) 723-2020

Permanent Injunction Against Enforcement of 6 Percent Satellite-Only Tax Sought on State and Federal Constitutional Grounds

COLUMBUS, OH, June 26, 2003 - EchoStar Satellite Corporation and its DISH Network, and DIRECTV, Inc., the nation's largest providers of satellite television services, this afternoon filed a lawsuit against the state of Ohio for passing a discriminatory 6 percent sales tax for satellite television service, which Ohio Gov. Bob Taft signed into law earlier today. The sales tax was not imposed on local cable television services, even though satellite television companies compete with incumbent cable operators in the same market. The lawsuit was filed in the Court of Common Pleas, Franklin County, Ohio.

The suit seeks a declaratory judgment holding that the satellite-only tax is unconstitutional and requests a permanent injunction against enforcement of the tax on approximately 700,000* satellite TV customers in Ohio.

"With this action, DISH Network and DIRECTV are vigorously defending the rights of the satellite television customers in Ohio who have selected a competitive and affordable alternative to cable television in the free marketplace," said Michael McDonnell, senior vice president and chief financial officer at EchoStar. "We will aggressively and proactively challenge any state that pursues a discriminatory and unfair tax policy that disenfranchises consumers, and our customers, while benefiting local cable operators."

The satellite-only sales tax was sponsored by local cable television operators that have exploited the budget crisis in Ohio in their attempt to gain an unfair and unconstitutional competitive advantage against faster-growing satellite television services.

"The satellite-only tax flies in the face of both the Ohio and U.S. constitutions," said Michael W. Palkovic, senior vice president and chief financial officer at DIRECTV. "Applying a discriminatory tax on satellite providers that provide virtually the same product to the same customer gives a direct commercial advantage to local cable services that access and place a burden on the state's public infrastructure, while discriminating against out-of-state satellite television services that do not use the public infrastructure nor put demands on the state for the delivery of their services. This discrimination violates the Commerce Clause of the U.S. Constitution."

Tom Zaino, Tax Commissioner for the State of Ohio, addressing a joint conference of the Ohio Senate and House of Representatives earlier this month, stated that a legal challenge of the satellite-only tax by the satellite TV companies has a "significant chance of success."

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.

* TV audience estimates by SkyTrends as of April 1, 2003 satellite television entertainment services with 8.8 million customers. DISH Network provides advanced digital satellite television services to the home, including hundreds of video, audio and data channels, personal video recording, HDTV, sports and international programming, professional installation and 24-hour customer service. For more information on DISH Network, visit www.dishnetwork.com, call 800/333-DISH (3474) or contact your local DISH Network retailer.