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Pegasus Satellite Television Sells Satellite Assets to DIRECTV, Inc.


BALA CYNWYD, PA -- -- 08/27/2004 -- Pegasus Satellite Communications, Inc., a wholly-owned subsidiary of Pegasus Communications Corporation (NASDAQ: PGTV), announced today that its subsidiary, Pegasus Satellite Television, Inc., completed the sale of Pegasus Satellite Television’s satellite television assets to DIRECTV, Inc. for a purchase price of $938 million, including $875 million cash, subject to certain closing adjustments, pursuant to the terms of an Asset Purchase Agreement dated as of August 2, 2004 between certain subsidiaries of Pegasus Satellite Communications, Inc. and DIRECTV, Inc. Following the closing, Pegasus Satellite Television will continue to provide certain services to DIRECTV, Inc. for a limited period of time to assure uninterrupted delivery of DIRECTV programming to Pegasus Satellite Television’s former subscribers while these subscribers are being transitioned over to DIRECTV, Inc. DIRECTV, Inc. expects to complete the migration between 30 and 45 days.

Miller Buckfire Lewis Ying & Co., LLC served as investment banker to Pegasus Satellite Communications in connection with the sale to DIRECTV.

About Pegasus Communications

Pegasus Communications Corporation is the parent company of Pegasus Satellite Communications; Pegasus Development Corporation, which holds Ka band satellite licenses granted by the FCC and intellectual property rights licensed from Personalized Media Communications LLC; Pegasus Guard Band LLC, which holds FCC licenses to provide terrestrial communications services in the 700 MHZ spectrum covering areas of the United States including approximately 180 million people (POPS); and Pegasus Rural Broadband LLC, which provides wireless broadband Internet access in rural areas.

Safe Harbor

Any statements that are not historical facts are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and will be considered forward-looking statements. Such forward-looking statements may be identified with words such as “we expect,” “we predict,” “we believe,” “we project,” “we anticipate,” and similar expressions. Pegasus’ actual results may differ materially from those expressed or indicated by forward-looking statements. There can be no assurance that these future events, including pending transactions, will occur as anticipated or that the Company’s results will be as estimated. Factors which can affect our performance and future events are described in our filings with the Securities and Exchange Commission, and include the following: general economic and business conditions, nationally, internationally, and in the regions in which we operate; catastrophic events, including acts of terrorism; litigation; demographic changes; existing government regulations and changes in, or the failure to comply with, government regulations; competition; the loss of any significant numbers of viewers; changes in business strategy or development plans; the cost of pursuing new business initiatives; an expansion of land-based communications systems; technological developments and difficulties; our ability to obtain intellectual property licenses and to avoid committing intellectual property infringement; our ability to attract and retain qualified personnel; and the availability and terms of capital to fund the expansion of our businesses. Persons are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


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