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ASKYB SELLS ASSETS TO PRIMESTAR.

NEW YORK--(BUSINESS WIRE)--June 11, 1997--Primestar Partners L.P. and American Sky Broadcasting (80% owned by The News Corporation Limited and 20% owned by MCI Communications Corporation) today announced an agreement for the sale and transfer to Primestar of two satellites under construction and the license to operate a direct broadcast satellite business at the 110 West Longitude orbital slot using 28 transponder channels.

The consideration to be received will consist of non-voting Primestar securities with a value of $1.1 billion which is equal to the News Corporation, MCI and ASkyB cost of investment for the assets being sold and transferred, plus related interest expense.

This sale of assets enables ASkyB, News Corporation and MCI to receive value for their DBS assets. As a result of the sale, News Corporation will refocus its energies and resources in the U.S. on its core content and programming businesses.

The Primestar securities to be received in the transaction will be convertible into publicly traded common stock. These securities will remain non-voting, convertible to voting shares only upon a sale of the securities.

Primestar is the second largest U.S. direct broadcast satellite service with approximately 1.8 million subscriber homes.

Under a separate arrangement, the Primestar partners have agreed to consolidate their DBS assets into a new venture.

The transaction is subject to approvals of federal regulatory agencies. Primestar and Tempo Satellite have agreed to dispose of their rights in the license to operate 11 transponder channels at the 119 West Longitude orbital slot.

Concurrently, ASkyB has agreed to sell its Gilbert, Arizona satellite uplink facility to Tele-Communications, Inc. for a purchase price which represents ASkyB's investment in the facility, plus related interest expense.

ASkyB will independently sell two additional satellites which are under construction.

CONTACT: Primestar Partners L.P. Inquiries

Vincent Duffy, 212-521-5215

or

News Corporation Press Inquiries

Jim Platt, 212-852-7083

or

News Corporation Investor Inquiries

Reed Nolte, 212-852-7092
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 11, 1997
Words:320
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