Week of March 28 – April 3, 2003
Percentage Change

Symbol
April 3 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
1.55
1.3
(0.6)
(13.4)
(9.9)
ASIASAT TELECOM SAT
12.82
0.9
3.4
9.6
12.6
BRITISH SKY BROADCASTING BSY
41.79
3.4
4.7
(1.1)
4.3
ECHOSTAR COMM -CL A DISH
28.97
0.3
10.0
24.4
30.1
GENERAL ELECTRIC GE
27.57
3.6
14.6
8.2
13.2
GILAT COMMUNICATIONS GICOF
0.10
(42.9)
(28.6)
(33.3)
GLOBALSTAR TELECOM GSTRF
0.07
(2.9)
36.0
30.8
HUGHES ELEC (GM -CL H) GMH
11.62
4.0
14.0
4.4
8.6
IRIDIUM WORLD COMM IRIDF
0.08
(21.1)
(28.6)
(31.8)
(31.8)
LORAL SPACE & COMM LOR
0.30
(9.1)
(16.7)
(21.1)
(30.2)
NEWS CORP NWS
27.11
3.7
8.4
(0.4)
3.3
NEW SKIES SATELLITES NSK
4.20
1.2
(1.6)
2.4
1.2
PANAMSAT SPOT
14.58
(0.7)
5.2
(2.7)
(0.4)
PASIFIK SATELIT NUSANTARA PSNRY
0.16
3.3
(3.1)
3.3
3.3
PEGASUS COMMUNICATIONS PGTV
14.09
0.3
(14.9)
12.3
7.6
SES GLOBAL SES.LU
4.85
11.5
4.5
(22.5)
(24.2)
SIRIUS SATELLITE RADIO SIRI
0.67
(0.1)
(11.8)
9.8
4.7
XM SATELLITE RADIO XMSR
6.17
4.4
31.0
131.1
129.4
Operators’ Average
100.00
0.2
(1.4)
6.7
6.6
Manufacturers
ANDREW ANDW
5.78
(0.0)
(24.2)
(45.7)
(43.8)
BALL BLL
57.80
3.8
8.5
9.2
12.9
BOEING BA
26.50
0.4
(3.8)
(21.8)
(19.7)
COM DEV INTL *CDV
0.80
(5.9)
(7.0)
(27.9)
(19.2)
GILAT SAT NETWORKS GILTF
0.23
(14.8)
(41.0)
(42.5)
(41.0)
GLOBECOM GCOM
2.99
0.7
(3.5)
(20.3)
(20.3)
HARRIS HRS
27.25
(2.0)
(9.0)
2.6
3.6
HONEYWELL HON
22.45
0.6
(1.9)
(10.1)
(6.5)
KVH KVHI
13.00
16.2
30.0
46.4
51.2
LOCKHEED MARTIN LMT
47.72
3.2
4.4
(18.9)
(17.4)
LUCENT TECHNOLOGIES LU
1.49
(2.0)
(9.1)
4.9
18.3
MOTOROLA MOT
8.49
(0.2)
0.8
(7.7)
(1.8)
NERA NERAY
0.83
1.5
(4.3)
(24.4)
(23.5)
NII NORSAT INTL NSATF
0.78
(7.1)
(22.0)
(17.0)
(21.6)
ORBITAL SCIENCES ORB
5.05
(8.2)
(11.9)
16.6
19.7
QUALCOMM QCOM
34.37
(10.6)
(0.6)
(7.5)
(5.6)
RAYTHEON RTN
28.96
3.6
6.9
(8.3)
(5.8)
ROCKWELL COLLINS COL
18.51
0.4
(5.8)
(21.2)
(20.4)
SCIENTIFIC-ATLANTA SFA
14.78
7.3
12.6
17.5
24.6
STM WIRELESS STMI
0.00
(99.5)
(100.0)
(100.0)
TITAN TTN
7.31
0.8
(8.1)
(29.6)
(29.7)
TRIMBLE NAVIGATION TRMB
20.40
10.3
21.8
55.8
63.3
VIASAT VSAT
11.38
(9.3)
1.0
(4.1)
(1.4)
Manufacturers’ Average
100.00
(0.5)
(7.2)
(11.0)
(8.0)
Nasdaq Composite Index COMP
1,396.58
0.7
4.4
0.8
4.6
S & P 500 SP50
876.45
0.7
4.2
(3.6)
(0.4)
SN Stock Price Average
100.00
(0.2)
(4.6)
(3.3)
(1.6)

Wall Street Analysis

By Tom Watts, SG Cowen Securities

To project the future of the satellite industry, we used to look at the diversified satellite operators, such as Hughes Electronics [NYSE: GMH] and Loral Space & Communications [NYSE: LOR]. These companies manufactured satellites and offered fixed satellite services (FSS).

How times have changed! Rather than these behemoths, one of the best industry bellwethers now is ViaSat [Nasdaq: VSAT] with its market capitalization of slightly more than $300 million.

ViaSat’s ramp-up in defense revenues over the last year presaged the importance of national security applications later reflected by PanAmSat’s [Nasdaq: SPOT] and Eutelsat’s revenues rise. ViaSat’s SurfBeam broadband terminal has gained increasing attention as a proxy for satellite broadband.

The launch customer for SurfBeam, WildBlue, has received new financing. EchoStar Communications [Nasdaq: DISH] also has considered adopting SurfBeam. SES Americom is studying SurfBeam adoption for its Americom2Home platform. Telesat Canada and Intelsat plan to follow WildBlue’s lead. Even Eutelsat has purchased a SurfBeam platform.

ViaSat developed SurfBeam originally to incorporate the DOCSIS standard, which is used by the cable TV industry to provide cable modem service. By leveraging the existing standard, ViaSat can take advantage of the economies of scale benefits already realized with cable modems for chipsets, access control software, billing and other features. ViaSat adds its value through its proprietary waveforms and RF components used to access the satellite. The result is a low-cost satellite broadband terminal with exceptional functionality.

SurfBeam appears ready to become an industry-wide standard for consumer broadband. To track the progress of broadband and other new markets that represent the satellite industry’s future, keep your eye on ViaSat.

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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