Among Viacom's strong-arm tactics is the demand that DISH Network carry Viacom-owned channels of little or no measurable appeal to viewers in exchange for the rights to carry the 16 owned-and-operated CBS stations. Viacom also threatened to withhold the Super Bowl from DISH Network customers until a federal judge intervened. EchoStar has challenged Viacom in court on these antitrust issues, noting that Viacom is leveraging its control of the public airwaves -- acquired by Viacom for free.

"DISH Network customers in the cities with CBS owned-and-operated stations are entitled to keep up with local news and events distributed over publicly owned airwaves, and Viacom is interfering with that right," said Charles Ergen, chairman and chief executive officer of EchoStar. "DISH Network will always have a place for CBS and we're willing to pay for retransmission rights, but Viacom is holding the public airwaves hostage, trying to extract concessions and higher rates on programming unrelated to CBS."

Viacom has asked for rate increases up to 40 percent over the length of the contract -- or nearly four times the rate of inflation. That demand potentially equates to hundreds of millions of dollars in payments by DISH Network, plus additional payments for additional channels that would offer little or no value to DISH Network's customers -- while saddling them with the costs. Viacom's demands for carriage of low-interest channels impede DISH Network's ability to provide new, independently owned channels with a broad appeal.

DISH Network is providing a $1 monthly credit to customers who lose CBS programming in the following markets where the stations are owned and operated by CBS: Austin, Boston, Baltimore, Chicago, Dallas-Ft. Worth, Denver, Detroit, Green Bay, Wis., Miami-Ft. Lauderdale, Minneapolis, Los Angeles, New York, Pittsburgh, Philadelphia, Salt Lake City and San Francisco.

Other channels affected by Viacom's unreasonable demands include BET, Comedy Central, MTV, MTV2, MTV Espanol, Nickelodeon, Nick Games & Sports, Noggin, VH1, VH1 Classic and CBS-HD East and West. Customers who had been receiving those channels on America's Top 60, America's Top 120, America's Top 180, America's Everything Pak, and DISH Latino Max will also receive a $1 monthly credit while the channels are unavailable.

Included in Viacom's negotiating tactics is a demand for DISH Network to renegotiate current agreements on other Viacom channels, allowing Viacom to require carriage and higher rates on those channels.

"Our goal is to remain the best value for our customers for the lowest price," said Ergen. "To do this, we need fair contracts with competitive pricing that allow DISH Network to select the channels most compatible with the interests of our customers."

DISH Network has been providing the Viacom channels since Jan. 7, 2004, under the terms of a U.S. District Court's temporary restraining order that was due to expire at midnight (PT) March 8, 2004.

DISH Network has reached a fair agreement for Viacom channels in the past, and DISH Network will continue to pursue negotiation so that it may broadcast all or most of those channels again.

About EchoStar Communications

EchoStar Communications Corporation (Nasdaq:DISH) serves over 9 million satellite TV customers through its DISH Network(TM), and is a leading U.S. provider of advanced digital television services. DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. DISH Network is the leader in the sale of digital video recorders (DVRs). Visit EchoStar's DISH Network at (www.dishnetwork.com).

SOURCE: EchoStar Communications Corporation

EchoStar Communications Corporation
Steve Caulk, 303-723-2010
steve.caulk@echostar.com