DirecTV Group Completes Acquisition of Pegasus Satellite Television Assets

EL SEGUNDO, Calif., Aug. 30/Satnews Daily/ — Following the approval last week of a U.S. Bankruptcy Court judge in Portland, Maine, the DirecTV Group, Inc. (NYSE:DTV) announced that its subsidiary, DirecTV, Inc., has completed the acquisition of the primary direct broadcast satellite assets of Pegasus Satellite Television, Inc., (Pegasus) which includes the rights to all DirecTV subscribers activated through Pegasus.

DirecTV said it expects to complete the migration of Pegasus customers to DirecTV within 30 to 45 days. It also assured customers DirecTV and Pegasus will work together to ensure a seamless migration of Pegasus customers to DirecTV. The company said DirecTV customers in Pegasus territories will continue to receive uninterrupted service during the transition process.

Pegasus had approximately 1.08 million customers as of June 1, 2004, the day when DirecTV ended Pegasus’ exclusive contract to distribute DirecTV television services to about 8 million rural households in 41 states.

Chase Carey, president and CEO of DirecTV Group, said the completion of the agreement not only gives DirecTV the rights to more than 1 million customers but also gives the company access to an additional 10 million households in rural areas to whom it can offer the full benefits of DirecTV programming, pricing and service.

Pegasus Satellite Communications, Inc. and its subsidiaries, including Pegasus Satellite Television, Inc., filed a voluntary petition for relief under Chapter 11 of the U.S. bankruptcy code on June 2, 2004 because of the termination of its exclusive contract with DirecTV. On August 2, 2004, DirecTV Group announced an agreement with Pegasus for DirecTV to purchase the primary direct broadcast satellite assets of Pegasus.

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