- - - Hughes Introduces More Powerful Birds - - -

Hughes Space and Communications (HSC) has expanded its satellite line to include two enhanced spacecraft products, the HS 601 Plus and the HS 702 Plus.

The satellites are an extension of HSC's existing models and will enable Hughes to offer a full range of power from 2 to 25 kilowatts.

Tig Krekel, president and CEO of Hughes, said, "More than a decade ago, we introduced the HS 601 spacecraft ... Seventy-five of these have been ordered by 17 customers. Four years ago, we announced our latest and then most-powerful spacecraft, the HS 702, the first of which is scheduled to launch this year. Nine of these powerhouses are currently on order. Today, we've raised the bar."

The satellite launched for DirecTV earlier this week was an HS601.

Hughes said its new, higher-power birds have increased capacity due to advances in energy storage, new thermal management systems, a highly efficient propulsion system and continued miniaturization of electronics.

"Our market research tells us that our customers want more capacity, and they want it now," said Krekel. "I believe many of our existing and future customers will respond favorably to this expanded line."

In related news, strong DirecTV sales encouraged Morgan Stanley to raise its year-end target price for Hughes Electronics, parent company of HSC and DirecTV, from $70 to $77. Shares in Hughes (NYSE: GMH) rose $2.81 Thursday to $65.94.

- - - Cable Group, Analyst Share SHVA Thoughts - - -

The American Cable Association (ACA) has joined the cacophony of voices speaking out about developing satellite TV legislation.

The ACA represents nearly 300 small, independently- owned cable businesses that generally serve small towns and rural areas. Many independent cable companies offer programming from DirecTV and EchoStar.

In a recent letter to the Congressional Conference Committee working on the Satellite Home Viewers Act (SHVA) from ACA President Matt Polka, the organization raised concerns about current proposals that do not contain enforcement mechanisms, and that suggest a $1 billion subsidy.

The letter reads: "The current absence of meaningful enforcement provisions openly invites willful noncompliance."

And it continues: " The second issue that concerns us is the recent proposal to offer a single technology and industry a $1 billion taxpayer subsidy to provide television programming in markets that already have television service .. We do not believe that the U.S. government needs to provide (rural) communities with a taxpayer subsidized service in order to provide one or two additional broadcast signals. Such a plan only serves to enrich two industries that are in no need of governmental handouts."

At least one satellite industry analyst also released a statement Thursday about the pending legislation Thursday. William Kidd from C.E. Unterberg Towbin wrote that the firm considers the positive aspect of the Conference Committee proposal is the inclusion of a local-into-local solution, and the negative aspect to be the omission of non-discriminatory retransmission consent provisions.

Kidd said he expects the legislation will pass this year, but added that doing so is "an industry and DBS stock imperative."

- - - HBO Launches C-Band Promotion - - -

HBO has teamed up with several C-Band affiliates to offer a consumer acquisition campaign through the end of the year.

The promotion extends one free month on an annual subscription to HBO The Works and MultiMax from Cinemax. That package includes eight analog feeds, or 20 digital feeds for 4DTV customers. Michael Bishara, HBO's director of C-Band marketing, said, "HBO is extremely committed to C-Band, and we're always looking for new ways to generate awareness and demand for our services."

The HBO offer comes just as General Instrument alleviates a 4DTV equipment shortage that caused some C-Band dealers to worry the company is curbing its big dish business. To read more about this story, look to the October 1999 SkyREPORT newsletter. Call (303) 271-9960 or go to www.skyREPORT.com/skyreport/skyrpt.htm for subscription information.

- - - Pegasus Reports Sub Numbers, Acquisitions - - -

Pegasus Communications said Thursday its DBS subsidiary, Pegasus Satellite Television, added 32,056 net new subscribers last month.

Pegasus Satellite Television is the largest independent provider of DirecTV in territories operated by the National Rural Telecommunications Cooperative.

The company's gross subscriber additions for September were 43,451 and its total number of actual subscribers was 630,924.

Pegasus also reported pending acquisitions of five DirecTV rural affiliates in the Upper Midwest, Central and Southern portion of the U.S. Collectively, the pending acquisitions serve approximately 15,500 DBS subscribers comprising nearly 122,000 households, the company said. The properties will cost Pegasus roughly $30.1 million in cash, stock and other instruments.

- - - Golden Sky Adds 9,000 Subs - - -

Golden Sky DBS, one of the largest independent providers of DirecTV in territories operated by the National Rural Telecommunications Cooperative, added 9,000 net new subscribers in September.

The company said Thursday that all of Golden Sky's subscriber growth during the month resulted from internal growth.

The September additions increased Golden Sky's total subscriber count, including multiple dwelling units, to 338,700 as of Sept. 30.

- - - PROGRAMMING: - - -

• DISH Carries Rugby, College Basketball -
  EchoStar announced this week that DISH Network will offer the Rugby World Cup 1999 semi-final and championship games live on DISH-On-Demand from Oct. 30 - Nov. 6. Customers can order all four games for $49.95, or individual games for $14.95 and $1995. EchoStar will also offer ESPN Full Court college basketball on DISH-On-Demand pay-per-view. It will cost $89 on or before Nov. 30 and $99 after that.

• DirecTV Subs Get Free Tyson Fight -
  DirecTV will offer a live broadcast of the upcoming Mike Tyson/Orlin Norris fight on Showtime free of charge to its customers on Saturday, Oct. 23 at 11 p.m. EST. And the company will provide a free, 24-hour preview of Showtime starting at 6 a.m. that day.

• CD Radio Adds Car Talk -
  CD Radio, the satellite-to-car radio broadcaster, has announced an exclusive agreement to add National Public Radio's "Car Talk" to its developing programming lineup.

• Network Races To Bell ExpressVu -
  Bell ExpressVu and The Ontario Jockey Club have reached an agreement whereby Bell ExpressVu will become the first broadcast distributor in Canada to offer The Racing Network Canada. The network will debut on Bell's DBS Pay-Per-View satellite TV service on Nov. 1.