As the Company previously announced, the south solar array on EchoStar IV did not properly deploy, resulting in a reduction of power available to operate certain transponders on the satellite, and an unrelated anomaly occurred resulting in the failure of four primary transponders and two spare transponders on the satellite.

While the anomalies have affected EchoStar's ability to fully utilize the satellite, the Company has commenced commercial use and is currently uplinking local signals to Denver, Salt Lake City, Phoenix and San Francisco. Significant additional programming including expanded local-to-local programming, educational, foreign language, data and other niche services will be added to EchoStar IV to serve the Western United States later this year and during 1999.

The insurance claim for $219,250,000 was filed through EchoStar's insurance broker, Marsh & McLennan. The Company expects to use the insurance proceeds, together with other funds, to launch a new DBS satellite to the 119 degrees W.L. location in approximately three years. Either EchoStar I or EchoStar II, currently located at 119 degrees W.L., could then be moved to one of the Company's other DBS orbital locations and each could provide in-orbit back up. EchoStar does not maintain insurance for lost profit opportunity.

With four operational satellites, EchoStar has more capacity in space than any other DBS provider and continues to offer over 300 digital video and audio services to more than 1.5 million DISH Network customers.

FCC Grants LEO License to E-SAT

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Satellite Launch To Boost DTH In India
Calcutta, India (SPX) Dec 28, 2005
The successful launch Thursday of India's heaviest satellite from spaceport of Kourou in French Guyana may have boosted the country's space research efforts to yet another level, but it has also lifted the spirits of at least three Direct-To-Home televisions broadcasters, one of which has been waiting for years to launch its services in India.