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EchoStar IV Satellite Experiences Anomalies


Washington DC - May 19, 1998 -
EchoStar has announced that its EchoStar IV satellite has experienced anomalies in connection with solar panel deployment. The satellite, an A2100AX design built by Lockheed Martin, was put into geosynchronous transfer orbit on a Proton launch vehicle on May 8, 1998.

Initial data indicates a significant number of transponders probably will not be affected. A series of maneuvers will be conducted over the next several weeks in order to attempt to correct the malfunction and a full recovery remains a possibility. However, the Company can not yet quantify the full extent of the anomalies and no assurances can be given as to the number of transponders that will ultimately be available for use. In the event performance is significantly diminished, EchoStar may determine to locate EchoStar IV at 148 degrees W.L. for local and niche programming, and maintain its national service at 119 degrees W.L. uninterrupted.

EchoStar has approximately $220 million of insurance on the satellite, has notified its insurance broker, and expects that any significant loss of capacity would be covered by insurance. EchoStar does not maintain insurance for lost profit opportunity.

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