DIRECTV Wins $51.5 Million Breach of Contract Suit Against Pegasus (1 Viewer)

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EL SEGUNDO, Calif., Apr 14, 2004 (BUSINESS WIRE) -- DIRECTV, Inc., a unit of The DIRECTV Group, Inc. (NYSE:DTV), announced today that a federal court jury returned a verdict awarding DIRECTV $51.5 million in damages against Pegasus Satellite Communications, Inc., as a result of Pegasus' breach of a joint marketing contract between the two parties. The jury rejected Pegasus' counterclaims.

The jury in the U.S. District Court for the Central District of California found in favor of DIRECTV on its claims, that DIRECTV had substantially performed its obligations under the joint marketing agreement but that Pegasus had breached the contract. The jury's $51.5 million damage award represents amounts unpaid by Pegasus under the agreement. The court will separately consider DIRECTV's request for pre-judgment interest in an amount in excess of $11 million.

"We are extremely gratified by the verdict," said Dan Fawcett, executive vice president, Legal and Business Affairs, DIRECTV, Inc. "We believe the evidence in the case overwhelmingly showed that Pegasus failed in its responsibility to fairly reimburse DIRECTV for certain of the subscriber acquisition costs that DIRECTV had incurred for Pegasus' benefit. Given the weight of the evidence, we were not surprised by the verdict."

In January of this year, the same federal court ruled that a proposed settlement agreement between DIRECTV and a Class consisting of certain members of the National Rural Telecommunications Cooperative (NRTC) was fair and granted final approval of the class action settlement. Pegasus is not a party to that settlement and neither the settlement nor this jury verdict resolves the related pending litigation between DIRECTV and Pegasus. DIRECTV moved to dismiss Pegasus' remaining claims, and its motion is set for hearing on April 28, 2004.

DIRECTV is the nation's leading digital multichannel television service provider with more than 12.2 million customers. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc., a unit of The DIRECTV Group, Inc. (NYSE:DTV). The DIRECTV Group is a world-leading provider of digital multichannel television entertainment, broadband satellite networks and services, and global video and data broadcasting. The DIRECTV Group is 34 percent owned by Fox Entertainment Group, which is approximately 82 percent owned by News Corporation Ltd.

SOURCE: DIRECTV, Inc.



CONTACT: DIRECTV, Inc. Robert Mercer, 310-964-4683 or Bob Marsocci, 310-964-4656Customize your Business Wire news & multimedia to match your needs.Get breaking news from companies and organizations worldwide.Logon for FREE today at www.BusinessWire.com.



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