ARCHOS Completes Strategic Alliance with EchoStar; Partnership Includes EchoStar Investment in ARCHOS and Brings Industry-Leading Portable Digital Video Recorder Products to EchoStar's DISH Network Customers.IRVINE, Calif. & IGNY, France -- ARCHOS(R) SA, a global consumer electronics manufacturer and leader in portable digital entertainment solutions, announced today it has completed a strategic alliance with EchoStar Communications Corporation EchoStar Communications Corporation (NASDAQ: DISH) is the parent company of DISH Network and the maintainer of the satellite fleet that provides the signal that DISH Network markets. (Nasdaq:DISH), a leading U.S. provider of advanced digital television services. Under the terms of the agreement, EchoStar invested approximately $9 million (7 million Euros) in ARCHOS and ARCHOS will provide portable digital video recorder See DVR. technology and products to EchoStar. The EchoStar investment in ARCHOS was made through the private issuance of convertible bonds at a subscription value of 3.16 Euros, or approximately $4.10, per bond. The bonds are convertible into approximately 26 percent of ARCHOS' share capital. The ARCHOS bonds bear interest at an annual rate of 5 percent. The bonds are convertible at any time by EchoStar, with the conversion rate set at one share per bond, subject to possible further adjustments. Subject to certain restrictions, ARCHOS has the right to convert or redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. a portion of the bonds at any time. The terms of the investment were approved by ARCHOS' shareholders in April 2005. The strategic alliance between EchoStar and ARCHOS includes an extensive new product development initiative as well. ARCHOS will provide EchoStar with portable digital video recorders that allow for high-speed transferring of video content directly from select DISH Network See DBS. set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. to ARCHOS' portable devices. EchoStar turned to ARCHOS as the primary partner in their portable DVR (1) (Digital Video Recorder) A device that records video onto a hard disk from one or more ceiling mounted video cameras. Part of a security system, the DVR typically supports 4, 8 or 16 separate camera channels. strategy because they see ARCHOS' products as the most advanced on the market today. It is anticipated that the EchoStar portable DVR products will be available from EchoStar in the summer to early fall of 2005. Additional information on the DISH Network and ARCHOS portable DVRs and ARCHOS' own set-top-box technologies will be announced shortly. "We are extremely proud to work with EchoStar on such an exciting and market-changing initiative in the portable video player A handheld device that plays videos. The term may refer to lightweight flash-based or hard disk-based MP4 players that download video content from a computer or to heavier, but still very portable, devices that play DVDs. See portable DVD player, Portable Media Center and portable media player. market," said Henri Crohas, ARCHOS founder and chief executive officer. "EchoStar is taking a unique technology approach by integrating the use of our portable video players with their DISH Network set-top boxes. This agreement confirms the growing success of the ARCHOS portable video players and recorders, and is a major new initiative for both us and EchoStar." About EchoStar EchoStar Communications Corporation (Nasdaq:DISH) serves more than 11.2 million satellite TV customers through its DISH Network(TM), and is a leading U.S. provider of advanced digital television services. DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates , sports and international programming, together with professional installation and 24-hour customer service. EchoStar has been a leader for 25 years in satellite TV equipment sales and support worldwide. EchoStar is included in the Nasdaq-100 Index (NDX NDX Index NDX Index (File Name Extension) NDX Northern Document Exchange NDX Index File ) and is a Fortune 500 company. Visit EchoStar's Web site at www.echostar.com or call 800-333-DISH (3474). About ARCHOS ARCHOS SA is a global consumer electronics hardware manufacturer and is the technology leader in the field of digital portable entertainment solutions. Committed to the most innovative technology, ARCHOS offers award-winning digital pocket-sized products that feature audio and video recording, photo viewing, gaming and other multimedia and productivity applications for the enjoyment of the most exciting entertainment anywhere, anytime. ARCHOS has offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe and Asia. More information is available online at www.archos.com. The names of companies mentioned herein are the trademarks of their respective owners. |
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