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The Satellite News Financial Ticker

By | November 3, 2003

      Week of Oct. 24 – 30, 2003
      Percentage Change
      Operators
      Symbol
      Oct. 30 Price
      One Week
      One Month
      Three Month
      Year to Date
      APT SATELLITE HLDGS ATS
      2.21
      (1.3)
      6.3
      (29.8)
      28.5
      ASIASAT TELECOM SAT
      18.00
      9.0
      20.4
      7.1
      58.0
      BRITISH SKY BROADCASTING BSY
      44.12
      1.4
      7.1
      (4.8)
      10.1
      ECHOSTAR COMM -CL A DISH
      38.64
      (0.8)
      0.9
      7.2
      73.6
      HUGHES ELEC (GM -CL H) GMH
      16.24
      3.8
      13.5
      17.9
      51.8
      LORAL SPACE & COMM LOR
      0.31
      (19.7)
      56.4
      40.2
      (92.9)
      NEWS CORP NWS
      35.71
      3.0
      8.9
      18.8
      36.0
      NEW SKIES SATELLITES NSK
      6.73
      11.8
      16.8
      17.9
      62.2
      PANAMSAT SPOT
      20.41
      5.3
      41.0
      17.6
      39.4
      PASIFIK SATELIT NUSANTARA PSNRY
      0.19
      (2.6)
      8.8
      19.4
      23.3
      PEGASUS COMMUNICATIONS PGTV
      18.61
      6.3
      24.9
      (50.9)
      42.1
      SES GLOBAL SESF.LU
      7.50
      (1.4)
      12.8
      26.9
      17.2
      SIRIUS SATELLITE RADIO SIRI
      2.31
      (7.6)
      26.9
      30.5
      260.9
      XM SATELLITE RADIO XMSR
      19.89
      4.2
      28.3
      47.7
      639.4
      Operators’ Average 100.00
      0.8
      19.5
      11.8
      89.3
      Manufacturers
      ANDREW ANDW
      12.77
      2.0
      5.7
      16.5
      24.2
      BALL BLL
      57.53
      6.5
      6.5
      16.3
      12.4
      BOEING BA
      38.77
      7.9
      12.9
      19.2
      17.5
      COM DEV INTL *CDV
      2.51
      0.4
      9.6
      79.3
      153.5
      EMS TECHNOLOGIES ELMG
      18.06
      0.4
      6.4
      4.0
      16.0
      GARMIN GRMN
      50.32
      19.0
      20.2
      30.7
      71.7
      GILAT SAT NETWORKS GILTF
      4.80
      13.2
      7.4
      1.3
      (38.5)
      GLOBECOM GCOM
      4.23
      (0.0)
      7.6
      14.3
      12.7
      HARRIS HRS
      37.43
      5.3
      4.6
      15.2
      42.3
      HONEYWELL HON
      30.46
      5.9
      15.6
      7.4
      26.9
      KVH KVHI
      28.54
      11.2
      12.9
      44.5
      231.9
      LOCKHEED MARTIN LMT
      46.92
      2.7
      1.7
      (10.5)
      (18.8)
      LUCENT TECHNOLOGIES LU
      3.24
      14.5
      50.0
      85.1
      157.1
      MOTOROLA MOT
      13.75
      2.0
      15.1
      51.1
      59.0
      NERA NERAY
      2.05
      (5.6)
      6.4
      3.2
      89.3
      ORBITAL SCIENCES ORB
      9.31
      (0.7)
      0.3
      12.4
      120.6
      QUALCOMM QCOM
      48.02
      9.5
      15.2
      28.6
      32.0
      RAYTHEON RTN
      26.50
      (0.8)
      (5.4)
      (13.5)
      (13.8)
      ROCKWELL COLLINS COL
      27.18
      1.4
      7.6
      4.1
      16.9
      SCIENTIFIC-ATLANTA SFA
      29.62
      (15.4)
      (4.9)
      0.8
      149.7
      SKY FRAMES SKYU
      0.60
      (21.1)
      (45.5)
      (45.5)
      (92.5)
      TITAN TTN
      21.20
      1.4
      1.7
      34.7
      103.8
      TRIMBLE NAVIGATION TRMB
      28.17
      21.4
      22.2
      3.2
      125.5
      VIASAT VSAT
      19.73
      3.2
      10.6
      42.4
      71.0
      Manufacturers’ Average 100.00
      3.5
      7.7
      18.5
      57.1
      Nasdaq Composite Index
      Nasdaq comp
      1,932.69
      2.5
      8.2
      12.3
      44.7
      SP 500 sp50
      1,046.94
      1.3
      5.1
      6.0
      19.0
      SN Stock Price Average  
      100.00
      2.5
      12.0
      16.1
      69.0

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      New York-based Sirius Satellite Radio [Nasdaq: SIRI] showed forward momentum in its latest quarterly financial results. The start-up satellite-radio company notched net subscriber additions for the third quarter that reached 44,000, compared with 237,000 posted by rival XM Satellite Radio [Nasdaq: XMSR] for the same period. The difference underscores the challenge Sirius faces as the second entrant in the market.

      So what lies ahead? Well, Sirius is making progress in getting commitments from Ford Motor Co. [NYSE: F] and DaimlerChrysler [NYSE: DCX] to factory install Sirius radios. Sirius CFO David Frear said that such commitments are “a matter of when, not if.” During 2004, the company expects to have factory-install programs in place for 47 vehicle models, an increase from the 27 factory-install programs available at year-end. By the end of 2003, Sirius radios will be available on either a factory- or dealer-install basis in more than 60 models. However, the factory-install program in place at Sirius differs from XM’s relationship with General Motors [NYSE: GM] and Honda Motor Co. [NYSE: HMC]. The dealer makes the sole choice whether to order a Sirius factory-install radio on any vehicle. By comparison, GM and Honda allocate a minimum number of vehicles that each dealer must order with XM. We favor XM’s “push” approach rather than the “pull” strategy of Sirius.

      Ford remains the greatest sticking point. As the second largest automaker after GM, Ford offers the greatest potential user base. However, Ford has made the least effort to date. In September, Ford announced its dealer-install program for 10 models. The dealer-install kits only began shipping to Ford dealers recently. We continue to believe, and Sirius management agrees, that convincing OEM partners Ford, DaimlerChrysler and BMW to move to factory-installs has to be the company’s highest priority. Indeed, the limited traction Sirius is gaining in the aftermarket makes dealer-install programs even more crucial.

      Although Sirius’ aftermarket products are having difficulty gaining traction, new products will be introduced in the fourth quarter that could revitalize its aftermarket sales.

      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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