DirecTV in the News

Galaxy Latin America, LLC, Tevecap S.A. And Abril S.A. Announce Closing Of Agreement To Restructure DIRECTV(TM) Operations In Brazil

SAO PAULO, Brazil and FORT LAUDERDALE, Fla., July 30 /PRNewswire/ -- Galaxy Latin America, LLC (GLA), the provider of the DIRECTV(TM) service in Latin America, TEVECAP S.A. (TVA), one of the founding members of GLA and major Brazilian pay-television operator, and Abril S.A. (Abril), today announced they have completed the sale by TVA to GLA of 100% of Galaxy Brasil, Ltda. (Galaxy Brasil), the exclusive distributor of the DIRECTV direct-to-home service in Brazil. In addition, TVA has sold Digisat, its C-Band direct-to- home business, to GLA. In a related transaction, TVA also sold its 10% equity interest in GLA to the two remaining GLA members, Hughes Electronics Corporation and the Cisneros Group of Companies. The transaction was approved by the Brazilian National Agency for Telecommunications (Anatel) on July 16, 1999.

"This transaction strongly supports our strategy to expand the DIRECTV business in Brazil,'' said Kevin N. McGrath, chairman of GLA." We look forward to this new era in the DIRECTV business and we will begin by greatly enhancing the service we provide to our Brazilian subscribers. For GLA, Brazil is the largest potential market and we are all committed to making the Brazilian operation a great success.''

Roberto Civita, chairman of TVA and Abril, added: "Everyone wins with this sale. TVA has now been financially restructured and can now expand its cable and MMDS businesses, as well as our new products such as the recently announced @JATO internet service. At the same time, GLA will now be able to expand its satellite business in Brazil. The Brazilian consumer benefits from added competition by a new entrant in the pay-tv business.''

GLA's DIRECTV is the first digital direct-to-home entertainment service to reach Latin America and the Caribbean. The company is the leading provider of satellite television in the region and offers an extensive programming lineup from Latin America, the United States, Europe and Asia. The service was the first to bring such entertainment options to the region as impulse pay-per- view and an interactive program guide. DIRECTV also offers exclusive packages like the Spanish and Italian Soccer Leagues. The service is available in 25 countries, including Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Trinidad and Tobago, Venezuela and several island nations in the Caribbean. DIRECTV will soon be launched in Puerto Rico, Peru, Paraguay, Uruguay and in the remaining countries in the region.

GLA is a multinational company whose owners, after the sale by TVA of its 10% interest, are Hughes Electronics Corporation, with a 77.5% percent interest, and the Cisneros Group of Companies, with a 22.5% interest. Galaxy Latin America(TM) and GLA(TM) are trademarks of Galaxy Latin America, LLC.

Many DirecTV Viewers to Lose Network Shows

WASHINGTON (Reuters) - Hundreds of thousands of subscribers to the DirecTV satellite television service hoping to catch hit shows like ``ER'' and ``Ally McBeal'' next week are in for a major disappointment: the shows won't be there.

To settle a lawsuit with the four major television networks, DirecTV agreed to stop sending signals from network stations in a few big cities to customers around the country who live within about 35 miles of their local TV stations.

The blackout could have been postponed or avoided altogether if Congress had finished work on legislation to amend the 1988 Satellite Home Viewer Act, which formed the basis of the networks' lawsuit. The 1988 law restricted satellite TV firms from carrying network shows.

But lawmakers have thus far been unable to iron out differences between House and Senate versions of the reform bill.

As a result, El Segundo, Calif.-based DirecTV said it has been notifying customers and cutting off programming throughout the month.

The No. 1 satellite television service has 7.4 million subscribers, with most receiving network shows locally using an over-the-air antenna or as part of a cable package, said spokesman Jeff Torkelson.

The only customers affected will be those who receive so-called distant network signals of CBS, ABC, NBC and Fox over their satellite dishes.

Customers losing the channels received a coupon from DirecTV allowing them to purchase at Radio Shack one of two specific models of over-the-air antenna at a one-third discount or any other Radio Shack antenna at a 20 percent discount.

After people living within 35 miles of local stations are turned off, another wave of cut-offs for DirecTV customers living between 35 and 70 miles away is scheduled for Dec. 31.

Torkelson declined to comment on how many subscribers have been or will be cut-off, but industry officials estimate up to one million DirecTV customers are affected.

The 2.6 million subscribers of No. 2 satellite firm, EchoStar Communications Corp., were not covered by the broadcasters' lawsuit, though the networks have asked the same federal court to require similar blackouts.

Under the Satellite Home Viewer Act, satellite TV services are generally prohibited from carrying local stations. But an exception was made for subscribers who, using a 1950s-era measurement test, had inadequate over-the-air reception.

Those customers, generally living at least 70 miles from their local broadcasters in so-called white areas, were allowed to receive distant network signals from the satellite companies.

Last year, a federal court in Miami ruled that more than one million satellite TV subscribers with adequate reception were illegally receiving distant network shows. After several delays, DirecTV and the networks set the July 31 and Dec. 31 cut-offs.

A bill passed by the Senate would have extended the cut-off date for people within 35 miles of local stations to Dec. 31 and for all others until a much later date. The House version of the bill did not extend the deadlines and required satellite companies to give cut-off subscribers free antennas.

"We had hoped to have the legislation enacted and signed into law by now,'' said Ken Johnson, spokesman for Louisiana Republican Billy Tauzin, chairman of the House Commerce Committee's communications subcommittee.

"The fact remains there are significant differences between the House and Senate versions,'' Johnson said. "We'll have a compromise through Congress and on the President's desk by the first of October."

Other differences include whether a new standard is needed to measure eligibility for distant network signals and what rules to impose on TV stations negotiating with satellite firms seeking permission to carry their signals.

NBC, DirecTV Ink Olympics Deal

New York (Multichannel Online) - NBC has signed up DirecTV Inc. and a number of cable operators for its upcoming cable Olympic coverage, which will air on CNBC and MSNBC.

DirecTV will become the second major distributor officially on board for the package, which includes five Olympic Games, as well as carriage extensions until 2008 for both CNBC and MSNBC, according to sources.

AT&T Broadband & Internet Services was the first official taker of NBC's Olympic deal, which in that case also included retransmission consent for NBC-owned TV stations. The AT&T Broadband-NBC Olympic pact was announced back in June.

DirecTV's agreement with NBC may be announced within the next week.

Wink to Enhance DIRECTV

GERMANTOWN, Md., July 27 /PRNewswire/ -- Hughes Network Systems (HNS), one of the nation's largest manufacturers of DIRECTV Systems, announced today that it has signed an agreement with Wink Communications to license the Wink Enhanced Broadcasting technology for incorporation into future HNS set-top products. The Wink-enabled DIRECTV Systems will be available in the first half of 2000.

"We're excited to offer Wink Enhanced Broadcasting capability to our customers,'' said Paul Gaske, senior vice president and general manager of HNS' Broadcast Products and Services Division. "This is further proof of HNS' commitment to ensure that our customers benefit from innovative technologies that enhance the video entertainment experience.''

"We are very pleased that HNS has licensed Wink's technology for incorporation into it's DIRECTV Systems,'' said Allan Thygesen, Wink's senior vice president." HNS is a leader in this industry, and we look forward to bringing an exciting set of interactive features with very broad appeal to their products in the home and at retail.''

Wink's technology allows advertisers and networks to create interactive enhancements to accompany traditional television ads and programs. By clicking their remote control during an enhanced program or advertisement, viewers get program-related information such as local weather, sports updates, product samples, and coupons as well as the ability to purchase products. Wink differs from Internet access on television as it enhances, and is broadcast with, existing shows and commercials and is free to viewers. DIRECTV customers will receive high-resolution interactive enhanced broadcasts on many of the more than 210 channels distributed by DIRECTV.

A world leader in satellite products and network systems for more than 25 years, HNS is the second-largest manufacturer of DIRECTV digital satellite systems and the provider of the award-winning DirecPC satellite Internet service. In addition, HNS is the global market leader in VSATs and has shipped more than 300,000 terminals. Headquartered in Germantown, MD, near Washington, DC, the company has sales and support offices worldwide. HNS offers communications network solutions that include a complete line of integrated satellite and enterprise networking products encompassing VSATs, frame relay, and fixed and mobile wireless networks. HNS is a unit of Hughes Electronics Corporation and an ISO-9001-certified manufacturer. The earnings of Hughes Electronics are used to calculate the earnings attributable to GMH (NYSE symbol) common stock.

DIRECTV is the nation's largest distributor of multi-channel digital video programming with more than 7 million customers, including customers subscribing to the PRIMESTAR by DIRECTV medium-power service. DIRECTV is a registered trademark of DIRECTV, Inc., a unit of Hughes Electronics Corporation. The earnings of Hughes are used to calculate the earnings attributable to GMH (NYSE symbol) common stock.

Wink Communications, based in Alameda, California, provides a complete end-to-end system for low-cost electronic commerce on television. Wink Enhanced Broadcasting allows advertisers, merchants and broadcast and cable networks the ability to create interactive enhancements to traditional television advertisements and programs. With a click of the remote control during an enhanced program or ad, viewers can use Wink to access program- related information, participate in votes and polls and play along with games and trivia tests. Wink capability is currently available to viewers in cable markets in California, Connecticut, Illinois, Missouri, and Tennessee. Wink Enhanced Broadcasting has been available in Japan since October 1996 and in the United States since June 1998.

DirecTV adds 122,000 new customers in July

EL SEGUNDO, Calif., Aug 5 (Reuters) - Satellite television company DirecTV, a unit of Hughes Electronics Corp. (NYSE:GMH - news), said on Thursday its digital satellite television service added 122,000 new customers in July.

The additions represent a record for July and a 51 percent increase from customer additions in July 1998, the company said.

So far in 1999, DirecTV has added 791,000 new customers to its high-power service, a 48 percent increase over additions in July 1998. The service offers more channels over a smaller satellite dish.

DirecTV said it currently has more than 7.4 million customers, including customers subscribing to the medium-power Primestar service, which offers fewer channels to customers with satellite dishes up to 36 inches in diameter.

DirecTV said it converted 52,000 customers of Primestar, which it acquired earlier this year, to its high-power service last month.

At the end of July, DirecTV's Primestar had about 2 million customers subscribing to its medium-power service.

FOX Sports World to Join the DIRECTV Programming Lineup Beginning September 1

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 16, 1999--DIRECTV, Inc. announced today that it has reached an affiliate agreement with FOX Sports World to offer the network on the DIRECTV® programming lineup beginning September 1, 1999.

FOX Sports World, which will be available to the more than 5.4 million households that subscribe to the DIRECTV high-power service, will be added to the Total Choice® GOLD and PLATINUM packages at no additional cost. FOX Sports World will air on DIRECTV channel 613.

``FOX Sports World is a welcome addition to our lineup,'' said Richard E. Goldberg, vice president of Programming Acquisitions for DIRECTV. ``FOX Sports World brings international sports coverage into the living rooms of our customers and complements the quality sports programming offered via the 16 FOX regional sports networks already available on DIRECTV.''

``Our agreement with DIRECTV provides a tremendous step forward in delivering FOX Sports World to fans across the country who have been requesting the network,'' said Dan Casey, vice president and general manager of FOX Sports World.

FOX Sports World is the only 24-hour English-language all-international sports network in the United States. FOX Sports World provides an impressive roster of prominent soccer events including the Super Cup, UEFA Cup, English FA Cup, the European Cup Winners' Cup and International Tournament of Toulon, plus professional soccer from the English Premier League, the German Bundesliga, Argentina, Chile and Mexico. In October, FOX Sports World will present extensive coverage of Rugby World Cup with teams from the four corners of the world including the United States, New Zealand, Australia, South Africa, Hong Kong, Europe and host-nation Wales. FOX Sports World's weekly Championship Rugby production offers a full match from the roughest leagues in the world such as the Super 12s, Hong Kong Sevens, 5 Nations and Tri-Nations. Other network highlights include the exclusive daily broadcast of Sky Sports News from the award winning Sky News, COMPAQ Grand Slam tennis, Formula One Racing, Aussie Rules Football, track and field, super bikes and much more.

¶ FOX Sports World is a division of FOX Sports International, a venture between News Corporation Ltd. and Liberty Media Corporation/Tele-Communications International, Inc. (TCI2). Go online with FOX Sports World at www.foxsportsworld.com.

Philips and DIRECTV Join Forces to Offer Satellite Television Products

BERLIN, Aug. 27 /PRNewswire/ -- Philips Electronics and DIRECTV have announced an agreement to offer digital satellite television set-top-boxes in the United States.

Under the agreement, Philips will manufacture set-top boxes to be jointly marketed over the next two years. The agreement makes Philips a leading supplier of DIRECTV hardware and one of the world's largest manufacturers of digital television set-top-boxes.

``As Philips takes a leading role in the digital set-top-box market worldwide, it has become more important than ever that we align ourselves with the right content and service industry partners such as DIRECTV,'' said Rob van Oostenbrugge, president of Philips Networks.

``As the leading digital television entertainment service in the US, offering more than 210 channels of programming, DIRECTV is a natural fit for us from a variety of standpoints. Our collaboration will go a long way in furthering the evolution of digital services in the living room and certainly solidifies Philips' position in the important North American marketplace.''

The agreement expands an existing cooperation between Philips and DIRECTV. Earlier this year, both companies announced their intention to work with Silicon Valley-based TiVo in the development and marketing of a Philips- branded DIRECTV System receiver that will allow viewers to receive both DIRECTV programming and the TiVo personal TV service in a single set-top box.

``DIRECTV and Philips share the same commitment to introducing consumers to new technologies,'' said Bill Casamo, executive vice president for DIRECTV. ``The television experience as we know it is rapidly evolving and the types of products we are offering with Philips will pave the way for an entirely new viewing experience.''

The first products resulting from the new collaboration between Philips and DIRECTV will be available next year. Philips and DIRECTV will make these products available to DIRECTV customers and at retail locations throughout the U.S.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of US$ 33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 227,600 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com. News about Philips can also be found on the U.S. web site www.philipsusa.com.