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The Satellite News Financial Ticker

By Staff Writer | November 10, 2003

      Week of Oct. 31 – Nov. 6, 2003
      Percentage Change
      Symbol
      Nov. 6 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      2.72
      24.8
      36.0
      (2.9)
      58.1
      ASIASAT TELECOM SAT
      17.90
      –
      22.6
      7.5
      57.2
      BRITISH SKY BROADCASTING BSY
      44.30
      0.3
      2.8
      (2.3)
      10.6
      ECHOSTAR COMM -CL A DISH
      36.63
      (6.0)
      (8.5)
      4.0
      64.6
      HUGHES ELEC (GM -CL H) GMH
      16.47
      3.7
      13.0
      23.2
      53.9
      LORAL SPACE & COMM LOR
      0.36
      14.5
      36.5
      63.2
      (91.7)
      NEWS CORP NWS
      37.17
      4.4
      11.1
      24.4
      41.6
      NEW SKIES SATELLITES NSK
      6.53
      5.8
      11.6
      17.2
      57.3
      PANAMSAT SPOT
      21.07
      0.3
      38.1
      27.9
      43.9
      PASIFIK SATELIT NUSANTARA PSNRY
      0.07
      (62.2)
      (63.2)
      (54.8)
      (53.3)
      PEGASUS COMMUNICATIONS PGTV
      17.27
      (7.1)
      21.6
      (51.7)
      31.8
      SES GLOBAL SESF.LU
      8.02
      4.8
      22.3
      30.0
      25.3
      SIRIUS SATELLITE RADIO SIRI
      2.36
      0.4
      26.2
      21.0
      268.8
      XM SATELLITE RADIO XMSR
      21.71
      11.7
      37.2
      54.5
      707.1
      Operators’ Average 100.00
      (0.3)
      14.8
      11.5
      91.1
      Manufacturers
      ANDREW ANDW
      13.40
      1.8
      1.7
      34.4
      30.4
      BALL BLL
      56.21
      (0.5)
      0.8
      16.3
      9.8
      BOEING BA
      38.91
      1.1
      8.5
      24.6
      17.9
      COM DEV INTL *CDV
      3.25
      29.0
      53.3
      132.1
      228.3
      EMS TECHNOLOGIES ELMG
      21.22
      17.2
      20.2
      29.0
      36.3
      GARMIN GRMN
      51.33
      (1.4)
      18.4
      37.3
      75.2
      GILAT SAT NETWORKS GILTF
      4.75
      (1.9)
      0.6
      1.5
      (39.1)
      GLOBECOM GCOM
      5.12
      24.6
      29.0
      42.2
      36.5
      HARRIS HRS
      38.29
      4.1
      6.6
      22.9
      45.6
      HONEYWELL HON
      30.39
      3.1
      12.4
      9.3
      26.6
      KVH KVHI
      30.60
      6.2
      13.4
      54.9
      255.8
      LOCKHEED MARTIN LMT
      46.36
      (1.2)
      1.4
      (7.6)
      (19.7)
      LUCENT TECHNOLOGIES LU
      3.27
      8.6
      47.3
      91.2
      159.5
      MOTOROLA MOT
      14.00
      0.9
      14.0
      51.7
      61.8
      NERA NERAY
      2.07
      (1.6)
      (5.0)
      (6.4)
      91.2
      ORBITAL SCIENCES ORB
      9.61
      1.4
      (0.2)
      17.9
      127.7
      QUALCOMM QCOM
      46.79
      (1.5)
      6.4
      29.9
      28.6
      RAYTHEON RTN
      26.94
      1.1
      (3.6)
      (10.4)
      (12.4)
      ROCKWELL COLLINS COL
      27.99
      2.4
      9.0
      9.6
      20.3
      SCIENTIFIC-ATLANTA SFA
      29.90
      (0.3)
      (11.0)
      1.9
      152.1
      SKY FRAMES SKYU
      0.82
      17.1
      (31.7)
      (18.0)
      (89.8)
      TITAN TTN
      21.22
      0.4
      1.6
      40.3
      104.0
      TRIMBLE NAVIGATION TRMB
      29.40
      6.1
      21.2
      13.9
      135.4
      VIASAT VSAT
      21.06
      6.2
      12.7
      55.9
      82.5
      Manufacturers’ Average
      100.00
      5.1
      9.5
      28.1
      65.2
      Nasdaq Composite Index
      Nasdaq comp
      1,976.37
      2.1
      5.1
      18.1
      48.0
      SP 500 sp50
      1,058.05
      0.9
      2.7
      9.6
      20.3
      SN Stock Price Average
      100.00
      3.1
      11.4
      22.0
      74.7

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      XM Satellite Radio’s [Nasdaq: XMSR] new XM Direct product could undermine rival Sirius Satellite Radio’s [Nasdaq: SIRI] original equipment manufacturer (OEM) distribution strategy. XM Direct enables any satellite-ready head unit, whether it is designed for XM or Sirius, to tune into XM using existing in-dash stereo controls. Our understanding is that XM’s new product would provide a converter to sit between the Sirius-ready head unit and an XM satellite receiver. A third party distributor will provide digital cable adapters and will package the product for both consumers and automobile dealers.

      The XM Direct product will enable XM to target the large number of Sirius-ready vehicles being shipped by Sirius’ exclusive OEM partners DaimlerChrysler [NYSE: DCX], Ford [NYSE: F], and BMW. It also will give an automotive dealer, who previously could offer only Sirius, the opportunity to sell either Sirius or XM service. Further, it may encourage dealers not to order factory-installed Sirius systems, but to receive the Sirius-ready vehicles so the customer could have an XM or Sirius choice.

      XM Direct further highlights the importance for Sirius to move to a factory-install basis rather than its current dealer-install basis. Sirius already is making strides in this direction. By year-end 2003, Sirius should be available in about 27 car models, up from about 20 currently. In 2004, factory installs should expand to 47 models, representing 2.8 million vehicles. The challenge, though, will be to get dealers to order the factory-installed units. Relying on this “pull” factor, rather than XM’s “push” strategy, where the automakers mandate how many vehicles will have XM, could represent a chink in Sirius’ new factory-install armor. XM Direct could be just the weapon to take advantage of that chink by encouraging Ford, DaimlerChrysler and BMW dealers to offer XM, as well as Sirius.

      Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached by phone at 212/278-4260 or by e-mail at [email protected] . Readers should assume that SG Cowen Securities Corp. and/or its affiliates intend to offer services in investment banking to the above referenced companies within the next three months, and to seek compensation for such services.

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