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The Satellite News Financial Ticker

By | September 29, 2003

      Week of Sept. 19 – 25, 2003
      Percentage Change

      Symbol
      Sept. 25 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      2.27
      (5.4)
      (16.2)
      (0.4)
      32.0
      ASIASAT TELECOM SAT
      15.00
      (6.5)
      (7.1)
      (6.2)
      31.7
      BRITISH SKY BROADCASTING BSY
      41.50
      1.4
      (4.6)
      (8.0)
      3.6
      ECHOSTAR COMM -CL A DISH
      38.89
      3.0
      7.0
      13.1
      74.7
      HUGHES ELEC (GM -CL H) GMH
      14.22
      (0.4)
      (0.8)
      12.6
      32.9
      LORAL SPACE & COMM LOR
      0.21
      (8.7)
      (92.6)
      (95.1)
      NEWS CORP NWS
      33.10
      (3.8)
      0.9
      9.2
      26.1
      NEW SKIES SATELLITES NSK
      5.30
      (3.8)
      (5.9)
      (8.6)
      27.7
      PANAMSAT SPOT
      14.16
      (5.5)
      (12.3)
      (23.4)
      (3.3)
      PASIFIK SATELIT NUSANTARA PSNRY
      0.17
      135.7
      17.9
      10.0
      PEGASUS COMMUNICATIONS PGTV
      15.61
      8.1
      (25.7)
      (43.5)
      19.2
      rSTAR CORP RSTRC
      0.62
      (15.1)
      (27.9)
      34.8
      158.3
      SES GLOBAL SESF.LU
      6.49
      5.5
      (3.4)
      8.2
      1.4
      SIRIUS SATELLITE RADIO SIRI
      1.93
      4.6
      21.5
      13.2
      200.8
      XM SATELLITE RADIO XMSR
      15.53
      (1.9)
      18.9
      53.0
      477.5
      Operators’ Average
      100.00
      (1.9)
      5.3
      (1.4)
      66.5
      Manufacturers
      ANDREW ANDW
      12.20
      (13.5)
      4.5
      27.2
      18.7
      BALL BLL
      53.82
      0.7
      9.2
      17.0
      5.1
      BOEING BA
      33.78
      (4.7)
      (5.3)
      (2.1)
      2.4
      COM DEV INTL CDV.TO
      2.30
      15.0
      51.3
      82.5
      132.3
      EMS TECHNOLOGIES ELMG
      16.79
      (6.2)
      (2.6)
      24.9
      7.8
      GARMEN LTD. GRMN
      45.50
      2.0
      16.6
      17.1
      55.3
      GILAT SAT NETWORKS GILTF
      4.74
      5.8
      5.1
      (7.1)
      (39.2)
      GLOBECOM GCOM
      3.60
      (14.7)
      (10.0)
      6.2
      (4.0)
      HARRIS HRS
      33.77
      (4.1)
      3.7
      8.5
      28.4
      HONEYWELL HON
      26.53
      (7.2)
      (8.9)
      (3.9)
      10.5
      KVH KVHI
      27.48
      (2.9)
      10.6
      46.9
      219.5
      LOCKHEED MARTIN LMT
      45.15
      (9.3)
      (9.5)
      (6.8)
      (21.8)
      LUCENT TECHNOLOGIES LU
      2.30
      25.0
      24.3
      82.5
      MOTOROLA MOT
      12.47
      17.2
      21.0
      32.8
      44.2
      NERA NERAY
      2.18
      (3.7)
      0.5
      46.3
      101.4
      ORBITAL SCIENCES ORB
      9.26
      (1.5)
      4.0
      30.8
      119.4
      QUALCOMM QCOM
      42.83
      (3.2)
      10.2
      19.6
      17.7
      RAYTHEON RTN
      28.09
      (7.3)
      (10.2)
      (15.2)
      (8.7)
      ROCKWELL COLLINS COL
      25.01
      (1.2)
      (6.7)
      4.5
      7.5
      SCIENTIFIC-ATLANTA SFA
      31.91
      (5.4)
      (2.1)
      34.4
      169.1
      SKY FRAMES SKYU
      1.15
      (6.5)
      27.8
      (37.8)
      (85.6)
      STM WIRELESS STMI
      0.00
      (71.4)
      (66.7)
      (86.7)
      (99.0)
      TITAN TTN
      20.72
      (2.2)
      30.7
      107.8
      99.2
      TRIMBLE NAVIGATION TRMB
      23.42
      (10.9)
      (15.0)
      (2.3)
      87.5
      VIASAT VSAT
      17.16
      2.8
      10.6
      29.2
      48.7
      Manufacturers’ Average
      100.00
      (5.3)
      3.8
      15.9
      40.0
      Nasdaq Composite Index COMP
      1,817.20
      (3.5)
      2.9
      13.2
      36.1
      S & P 500 SP50
      1,003.26
      (2.2)
      1.0
      2.0
      14.0
      SN Stock Price Average
      100.00
      (4.0)
      4.3
      9.4
      49.9

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      Cablevision’s [NYSE: CVC] satellite TV venture, called VOOM, is ready for take off. Reports on VOOM indicate it will compete directly with EchoStar Communications [Nasdaq: DISH] and DirecTV by establishing an early leader position in the emerging sector of high-definition television (HDTV). By offering an extensive HD programming line-up, together with a limited sampling of traditional cable fare, VOOM aims to ride the HD wave to become a mainstream direct broadcast satellite (DBS) operator. The projected growth of HD from under 2 million homes today to 42 million by 2007 creates a special one-time opportunity for this new entrant to gain a foothold.

      With the ability of both EchoStar and DirecTV to respond with competitive offerings, we view VOOM as a high-risk venture. Nevertheless, it will stimulate both DBS operators and cable TV to react. We view EchoStar and DirecTV as net gainers in the end, if they respond quickly and provide a more expansive HD offering than cable is likely to deliver.

      HD holds a special challenge for the re-broadcast of local signals. As the TV networks (NBC, ABC, CBS, FOX, UPN, WB, PBS) upgrade to HD, current regulation requires the DBS operators to re-broadcast each local affiliate’s version of that signal over the satellite. EchoStar and DirecTV are taking three approaches to this requirement. First, they are attempting to change the regulation. Second, they are encouraging consumers to use off-air antennas to receive the local affiliate over the air, then feed the signal into the satellite receiver. Both EchoStar and DirecTV do this now, as VOOM plans to do. Third, they are arranging to have adequate satellite capacity to carry HD local signals at least for major markets.

      While the satellite operators can add the necessary incremental capacity for HD by launching additional satellites, cable operators will be hard pressed to add 200-300 additional channels per system. Also, both DBS companies have expressed a willingness to share spectrum if the opportunities for cost savings are available. The combined resources of DirecTV and EchoStar will make it even more difficult for the cable companies to provide comparable HD capacity.

      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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