EchoStar Communications Corp. reports first quarter increase in revenues of 74%.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--May 12, 1997--EchoStar Communications Corp. ("Echostar") (NASDAQ:DISH) today reported first quarter 1997 total revenues of $72.0 million, an increase of 74% as compared to $41.5 milion during the first quarter of 1996.

This increase was the direct result of the company's rapidly increasing DISH Network(SM) subscriber base. The DISH Network began providing commercial service in March 1996. During the three months ended March 31, 1997, the DISH Network added approximately 130,000 subscribers.

EchoStar had approximately 480,000 DISH Network subscribers as of March 31, 1997. EchoStar's earnings before interest, taxes, depreciation and amortization ("EBITDA") was a negative $3.8 million for the three months ended March 31, 1997, compared to a negative $5.3 million for the same period in 1996.

As expected, EchoStar reported net losses of approximately $62.9 million for the three-month period ended March 31, 1997, as compared to $7.2 million reported during the same period of 1996. The increase in EchoStar's net loss related principally to increased depreciation and amortization expense (including depreciation of the company's EchoStar I and EchoStar II satellites, launched during 1995 and 1996, respectively), higher interest expense as a result of continued accretion of the company's Dish Notes and ESBC Notes, which were issued during 1994 and 1996, respectively, DISH Network subscriber promotion subsidies (i.e., subscriber acquisition costs incurred in connection with certain DISH Network marketing promotions), and increases in programming and general and administrative expenses.

Compared to the fourth quarter of 1996, total revenues increased $18.0 million during the first quarter of 1997 (from $54.0 million in the prior quarter). The increase in total revenues resulted principally from the increase in the number of DISH Network subscribers of 130,000 during the quarter ended March 31, 1997. EBITDA improved from negative $37.4 million during the quarter ended Dec. 31, 1996.

The decrease in negative EBITDA resulted from the increase in total revenues described above, combined with decreases in subscriber promotion subsidies and selling, general and administrative expenses. EchoStar expects operating revenues to continue to increase in future periods as it expands its distribution channels and the number of DISH Network subscribers increases.

Charles W. Ergen, chairman and chief executive officer of Echostar, noted, "We are pleased with our first quarter DISH Network subscriber growth and operating results, particularly in light of our reduced marketing activities during the period. Our marketing efforts were curtailed relative to previous periods due to our negotiations with The News Corporation Limited. Subscriber growth, revenue per customer and EBITDA results were consistent with our internal expectations."

DISH Network is a service mark of EchoStar Communications Corp. DISH Network's Internet address is: http//www.dishnetwork.com

All statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results of or from any future results expressed or implied by such forward-looking statements. -0-

                            Selected Financial Data
                       EchoStar Communications Corporation
                         (Nasdaq National Market:  DISH)
                      (in thousands, except per share data)

                                            Three Months Ended
                                                 March 31,
                                            1996          1997
Statements of Operations Data:
Revenues:
DTH products, technical services
 and other                                 $37,554       $12,153
DISH Network promotions - subscription
 television services and products               --        32,308
DISH Network subscription television
 services                                      464        25,399
C-band programming                           3,449         2,163
Total revenue                               41,467        72,023
Expenses:
DTH products and technical services         32,750         9,487
DISH Network(SM) programming                   105        19,425
C-band programming                           3,178         1,763
Selling, general and administrative         10,733        32,027
Subscriber promotion, subsidies                 --        13,142
Amortization of subscriber acquisition
 costs                                          --        28,102
Depreciation and amortization                3,330        12,673
Total expenses                              50,096       116,619
Operating loss                              (8,629)      (44,596)
Other income (expense):
Interest income                              2,677         1,772
Interest expense, net of amounts
 capitalized                                (6,043)      (19,846)
Other                                       (   17)      (   177)
Total other income (expense)                (3,383)      (18,251)
Net loss before income taxes               (12,012)      (62,847)
Income tax benefit (provision)               4,791       (    19)
Net loss                                  $( 7,221)     $(62,866)
Net loss attributable to common shares    $( 7,522)     $(63,167)
Weighted average common shares
 outstanding                                40,376        40,922
Loss per common and common equivalent
 share                                    $ ( 0.19)     $(  1.54)
Number of DISH Network subscribers           1,700       479,600

CONTACT: EchoStar Communications Corp., Englewood

Judianne Atencio, 303/799-8222 x5112

e-mail: [e-mail]