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The Satellite News Financial Ticker

By Staff Writer | December 22, 2003

      Week of Dec. 11 – 18, 2003
      Percentage Change
      Symbol
      Dec. 18 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      2.33
      (12.1)
      0.4
      (2.9)
      35.5
      ASIASAT TELECOM SAT
      18.27
      2.4
      9.0
      13.8
      60.4
      BRITISH SKY BROADCASTING BSY
      51.25
      9.3
      10.1
      25.2
      27.9
      ECHOSTAR COMM -CL A DISH
      32.91
      4.5
      (1.6)
      (12.9)
      47.8
      HUGHES ELEC (GM -CL H) GMH
      15.49
      (1.0)
      (0.8)
      8.5
      44.8
      LORAL SPACE & COMM LOR
      0.34
      6.3
      (5.6)
      47.8
      (92.1)
      NEWS CORP NWS
      34.84
      4.2
      1.4
      1.3
      32.7
      NEW SKIES SATELLITES NSK
      7.05
      (1.4)
      6.5
      27.9
      69.9
      PANAMSAT SPOT
      20.99
      (2.5)
      2.1
      40.0
      43.4
      PASIFIK SATELIT NUSANTARA PSNRY
      0.08
      (55.9)
      (6.2)
      (54.5)
      (50.0)
      PEGASUS COMMUNICATIONS PGTV
      19.06
      2.4
      (11.4)
      32.0
      45.5
      SES GLOBAL SESF.LU
      7.60
      (4.3)
      (2.6)
      23.6
      18.8
      SIRIUS SATELLITE RADIO SIRI
      2.18
      2.6
      1.2
      18.2
      239.8
      XM SATELLITE RADIO XMSR
      23.01
      2.4
      4.7
      45.3
      755.4
      Operators’ Average
      100.00
      (3.1)
      0.5
      15.2
      91.4
      Manufacturers
      ANDREW ANDW
      11.20
      11.4
      (2.9)
      (20.6)
      8.9
      BALL BLL
      58.39
      1.4
      6.2
      9.2
      14.1
      BOEING BA
      41.36
      6.4
      4.1
      16.7
      25.4
      COM DEV INTL *CDV
      2.84
      (9.8)
      (4.4)
      42.0
      186.9
      EMS TECHNOLOGIES ELMG
      19.64
      (0.3)
      (7.7)
      9.7
      26.1
      GARMIN GRMN
      54.41
      6.0
      5.2
      22.0
      85.7
      GILAT SAT NETWORKS GILTF
      4.78
      3.5
      (6.1)
      6.7
      (38.7)
      GLOBECOM GCOM
      5.45
      (13.7)
      (8.7)
      29.1
      45.3
      HARRIS HRS
      38.08
      2.1
      3.6
      8.2
      44.8
      HONEYWELL HON
      31.66
      4.5
      6.6
      10.7
      31.9
      KVH KVHI
      29.41
      (0.6)
      1.3
      3.9
      242.0
      LOCKHEED MARTIN LMT
      50.00
      3.3
      9.1
      0.5
      (13.4)
      LUCENT TECHNOLOGIES LU
      2.92
      4.7
      (2.7)
      27.0
      131.7
      MOTOROLA MOT
      13.39
      6.7
      3.0
      25.8
      54.8
      NERA NERAY
      2.07
      (4.4)
      5.1
      (8.7)
      91.0
      ORBITAL SCIENCES ORB
      12.43
      15.5
      33.7
      32.2
      194.6
      QUALCOMM QCOM
      51.56
      5.8
      10.4
      16.5
      41.7
      RAYTHEON RTN
      29.77
      4.3
      8.9
      (1.8)
      (3.2)
      ROCKWELL COLLINS COL
      29.24
      8.7
      10.8
      15.5
      25.7
      SCIENTIFIC-ATLANTA SFA
      27.69
      5.7
      0.7
      (17.9)
      133.5
      SKY FRAMES SKYU
      0.35
      250.0
      (41.7)
      (71.5)
      (95.6)
      TITAN TTN
      21.77
      0.6
      2.8
      2.7
      109.3
      TRIMBLE NAVIGATION TRMB
      33.39
      13.5
      19.4
      27.1
      167.3
      VIASAT VSAT
      18.70
      1.7
      (10.1)
      12.0
      62.0
      Manufacturers’ Average
      100.00
      13.6
      1.9
      8.2
      65.5
      Nasdaq Composite Index
      Nasdaq comp
      1,956.18
      2.7
      2.4
      3.9
      46.5
      SP 500 sp50
      1,089.18
      2.8
      4.4
      6.2
      23.8
      SN Stock Price Average
      100.00
      7.5
      1.4
      10.8
      75.0

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      When News Corp [NYSE: NWS] takes the keys to Hughes Electronics’ [NYSE: GMH] headquarters from General Motors [NYSE: GM], several new opportunities will be available for DirecTV to grow its subscriber base by leveraging the new owner’s assets. We all know this. Many of us have seen the prelude to what is to come as we watched an interview of New York Yankees shortstop Derek Jeter on Fox during the World Series, with the DirecTV logo conspicuously in the background.

      One of the most widely anticipated moves by both News Corp and EchoStar Communications [Nasdaq: DISH] is the launch of an effective consumer satellite broadband platform to compete more vigorously with cable’s broadband solution. And yes, both direct broadcast satellite (DBS) operators have plans to bundle DSL through arrangements with the major telcos. However, this plan will not cater to all. We estimate that the market not served by either cable or DSL is about 30 million households, which implies that the total market for satellite broadband could exceed this estimate, particularly if prices fall.

      Presently, DirecTV offers satellite broadband via the DirecWay platform of its sister company, Hughes Network Systems. DirecWay had amassed roughly 178,000 subscribers by the end of the third quarter. This venture has not been profitable to date, with losses estimated at about $50 million this year. However, we increasingly believe WildBlue could be used as the consumer broadband offering paired with DirecTV’s satellite TV service. Closure of News Corp’s acquisition of Hughes could facilitate this announcement, since News Corp has strong relationships with WildBlue shareholder Liberty Media [NYSE: L], and the rural distributor of DirecTV, the National Rural Telecommunications Cooperative, also holds a WildBlue stake. Hughes Electronics already has the SpaceWay satellites under construction. However, that proposed service primarily is geared toward the enterprise market. Thus, DirecTV needs to explore other options, such as WildBlue, to serve the consumer market with competitive pricing.

      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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