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SJI NewsWire Echostar/ASkyB merge

Satellite Journal Newswire

Echostar/News Corp.

The News Corporation Limited and EchoStar Communications Corporation have
formed a new Direct  Broadcast Satellite alliance designed to mount
vigorous competition  in the subscription television market.   

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  Western Longitude
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.   

Charles W. Ergen will continue to serve as the Chief Executive  Officer of
EchoStar.  Rupert Murdoch, Chairman and Chief Executive of News
Corporation, will serve as Chairman of EchoStar.  Carl Vogel  will serve as
Executive Vice President of EchoStar.  Paul Haggerty,  currently the Chief
Financial Officer of ASkyB, will be named Chief  Financial Officer of
EchoStar.   

Preston Padden, Chief Executive Officer, of ASkyB has been named 
President, Worldwide Satellite Operations for News Corporation.  In  this
capacity, Mr. Padden together with Mr. Murdoch, will oversee  News
Corporation's investment in EchoStar and Mr. Padden will have  primary
responsibility for co-ordination of News Corporation's DBS  systems around
the world.  Mr. Padden will report to Chase Carey,  Co-Chief Operating
Officer of News Corporation.   

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

(c) Satellite Journal Itl.
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