TS News - News Corp And Echostar Form New DBS Venture

TELE-satellit News, 26 February 1997

News Corp And Echostar Form New DBS Venture
  NEW YORK, New York, USA, 97/02/26 (TS) -- Rupert Murdoch's News
Corporation and EchoStar Communications Corporation have announced they
will work together in the direct broadcasting satellite business in the US.
Both companies have been planning a DBS service for some time and the
joining of forces illustrates the strong competition in the US market now.

  News Corporation will contribute to EchoStar cash, satellites and other
assets of News Corporation's American Sky Broadcasting having a total value
of $1 billion in return for 50% of the equity of EchoStar.  MCI
Communications Corporation will own 20% of  News Corporation's 50%
interest, or 10% of EchoStar.

  The DBS transponder capacity at the orbital slots currently  licensed by
EchoStar (which includes the use of 91 transponders at  61.5 degrees, 110
degrees, 119 degrees, 148 degrees and 175 degrees West orbital locations)
and MCI (which includes the use  of 28 transponders at 110 degrees West
Longitude orbital location)  will be made available for use by EchoStar.
The EchoStar DBS  business will continue to be headquartered in Englewood,
Colorado and will operate under the trade name Sky, which is utilised by
News  Corporation's DBS services around the world.  EchoStar is expected to
spin off to existing shareholders certain assets, including its
manufacturing and international businesses.

  The new Sky service is expected to include 7 satellites, more than 500
channels, advanced technology, and retransmission of local TV stations in
markets representing more than 75% of all U.S. television households.

(c)TELE-satellit 1997. All rights reserved.

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