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The Satellite News Financial Ticker

By | June 21, 2004

      Week of June 11 – 17, 2004
      Percentage Change
      Symbol
      June 17 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      1.82
      7.1
      6.4
      (15.0)
      (23.5)
      ASIASAT TELECOM SAT
      16.20
      2.5
      (0.3)
      (12.4)
      (14.6)
      BRITISH SKY BROADCASTING BSY
      46.41
      0.3
      5.5
      (10.8)
      (8.9)
      ECHOSTAR COMM -CL A DISH
      30.97
      (1.5)
      2.3
      (10.4)
      (8.9)
      THE DIRECTV GROUP DTV
      17.03
      (2.1)
      1.4
      8.5
      2.9
      LORAL SPACE & COMM LOR
      0.14
      (12.5)
      (58.8)
      (77.0)
      (55.6)
      NEWS CORP NWS
      35.90
      0.4
      1.6
      1.8
      (0.6)
      NEW SKIES SATELLITES NSK
      7.67
      9.4
      19.8
      7.1
      PANAMSAT SPOT
      23.29
      0.6
      1.3
      (1.4)
      8.0
      PASIFIK SATELIT NUSANTARA PSNRY
      0.14
      (36.4)
      (42.9)
      180.0
      PEGASUS COMMUNICATIONS PGTV
      16.03
      (8.9)
      11.0
      (54.2)
      (42.9)
      SES GLOBAL SESF.LU
      7.34
      0.8
      12.1
      1.9
      (8.3)
      SIRIUS SATELLITE RADIO SIRI
      3.11
      (4.6)
      (1.6)
      1.3
      (1.6)
      XM SATELLITE RADIO XMSR
      23.08
      (2.4)
      0.8
      (11.8)
      (12.2)
      Operators’ Average 100.00
      (1.5)
      (3.2)
      (14.5)
      1.5
      Manufacturers
      ANDREW ANDW
      18.48
      (4.5)
      8.1
      7.6
      59.4
      BALL BLL
      69.36
      (0.2)
      6.1
      6.5
      16.4
      BOEING BA
      49.49
      1.7
      13.9
      25.6
      17.4
      COM DEV INTL *CDV
      3.47
      6.8
      53.5
      36.1
      20.5
      EMS TECHNOLOGIES ELMG
      19.00
      (2.4)
      (0.2)
      4.9
      (7.5)
      GARMIN GRMN
      30.85
      (10.2)
      6.1
      (22.6)
      (43.4)
      GILAT SAT NETWORKS GILTF
      6.65
      8.1
      14.7
      (17.4)
      36.0
      GLOBECOM GCOM
      5.25
      (1.5)
      (5.2)
      (8.7)
      10.5
      HARRIS HRS
      47.61
      3.3
      10.1
      6.5
      25.5
      HONEYWELL HON
      36.11
      3.1
      7.9
      12.5
      8.0
      KVH KVHI
      14.09
      5.9
      2.5
      (0.5)
      (48.9)
      LOCKHEED MARTIN LMT
      49.74
      (0.7)
      4.9
      13.5
      (3.2)
      LUCENT TECHNOLOGIES LU
      3.49
      0.9
      6.4
      (9.4)
      22.9
      MOTOROLA MOT
      18.13
      (8.8)
      (4.0)
      9.2
      29.5
      ORBITAL SCIENCES ORB
      13.10
      1.2
      3.6
      12.9
      9.0
      QUALCOMM QCOM
      68.38
      (0.1)
      7.4
      6.6
      26.8
      RAYTHEON RTN
      34.86
      2.2
      5.3
      17.2
      16.0
      ROCKWELL COLLINS COL
      31.81
      0.6
      5.9
      6.4
      5.9
      SCIENTIFIC-ATLANTA SFA
      33.00
      (4.1)
      1.8
      5.4
      20.9
      SKY FRAMES SKYU
      0.01
      (90.0)
      (90.0)
      (90.0)
      TITAN TTN
      18.91
      0.5
      (0.9)
      (5.2)
      (13.3)
      TRIMBLE NAVIGATION TRMB
      26.89
      (3.0)
      8.3
      25.2
      8.3
      VIASAT VSAT
      23.34
      (0.3)
      8.6
      (10.3)
      21.9
      Manufacturers’ Average 100.00
      (0.1)
      3.2
      1.4
      6.5
      Nasdaq Composite Index
      Nasdaq comp
      1,983.67
      (0.3)
      4.2
      2.1
      (1.0)
      SP 500 sp50
      1,132.03
      0.1
      3.3
      1.9
      1.8
      SN Stock Price Average
      100.00
      (0.6)
      0.8
      (4.6)
      4.6

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      Will Mel Aand Howard Go Satellite?

      The buzz continues to grow louder that Mel Karmazin could end up heading one of the two satellite radio companies. And where Mel goes, radio shock jock Howard Stern soon could follow.

      Karmazin resigned from Viacom at the beginning of this month. While he was there, he oversaw Viacom’s Infinity Broadcasting Group, Howard Stern’s employer. Prior to Karmazin’s departure, Stern had said that if Mel left Viacom, he would as well. Karmazin had been Stern’s strongest defender as well as his boss, testifying before Congress to defend the “king of all media’s” right to freedom of speech.

      Stern’s contract runs through the end of 2005, so the opportunity for him to move to satellite radio could be postponed. However, he’s been running up a series of indecency fines from the FCC. Earlier this month, Clear Channel agreed to a record setting $1.75 million fine for an April 2003 broadcast by Stern. Clear Channel dropped Stern from six of its stations.

      The price of indecency could rise further. The House of Representatives voted to raise the cap to $500,000 from its current $27,500 per incident and to require the FCC to consider revoking a broadcaster’s license after three indecency violations. Similar legislation is pending in the Senate.

      So, would it make sense for XM or Sirius to hire Stern and, along with him, Karmazin? Reports have Stern favoring setting up an independent production company and selling his programming to satellite and, perhaps, to others. Stern’s show could air on a special premium channel costing as little as $1 per month. Translating that to $12 per year, Stern only would need to tell 2.5 million of his 15 million current listeners to tune in on satellite to generate the same $30 million annually he earns now.

      And what about Karmazin? At XM, both Chairman Gary Parsons’ and CEO Hugh Panero’s contracts expire July 1. The company claims it is negotiating extensions. At Sirius, CEO Joe Clayton’s contract runs out in November. It looks like there could be room in the executive suite.

      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 tom.watts@sgcowen.com. 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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