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PRIMESTAR PARTNERS ANNOUNCES AGREEMENT WITH ATTORNEYS GENERAL AND DEPARTMENT OF JUSTICE

 BALA-CYNWYD, Pa., June 9 /PRNewswire/ -- Primestar Partners, L.P. reported today that it has entered into agreements with 40 states and the Department of Justice under which Primestar can now freely pursue the development of its direct broadcast satellite business -- a rapidly growing video delivery alternative.
 "We are very pleased that we can put this matter behind us with a responsible, mutually acceptable arrangement that resolves the state and federal investigations without litigation and on a basis that enables us to aggressively develop Primestar," said John Cusick, president and chief executive officer of Primestar.
 "We expect to implement a full-scale roll-out of our business strategy beginning immediately. This is particularly exciting right now, since so much is happening in the industry. Direct broadcast satellite, particularly, is attracting serious new entrants and we want to be well-positioned in relation to the emerging competition.
 Mr. Cusick noted that Primestar currently serves over 50,000 subscribers in 48 states, and envisions a potential subscriber base of millions of homes in the continental United States. The Company currently has active distributorships in more than 60% of the counties in the continental United States, and in the near-term will be finalizing commitments both for digital compression and higher performance next generation satellite services.
 "Given the exciting opportunities that exist in the DBS industry, it made eminent sense for us to avoid the expenses of protracted litigation, so that we could bring our service to millions of consumers who do not have any multi-channel television service, and enable others to enhance, or even switch from, their existing cable service."
 The consent agreements are generally consistent with the existing business practices of the MSO's. No major changes are anticipated.
 The principal terms of the agreement deal with programming access, exclusivity, and the structure of Primestar.
 Generally, the Company noted that
 -- the programming access provisions of the agreement do not apply to all programming; there are exceptions for regional news and other non-sports regional programming, pay-per-view and interactive programming;
 -- the terms of the agreement will generally terminate on Oct. 1, 1997;
 Specifically,
 -- existing, and in some cases new, national video and regional sports services controlled by any Primestar MSO partner must be made available to DBS and MMDS on reasonable business terms. Existing exclusivity, except with respect to DBS, is grandfathered;
 -- Primestar MSO Partners' programming services cannot discriminate on the totality of price and other terms of affiliation against DBS/MMDS as compared to a cable operator of comparable size;
 -- Primestar MSO partners' programming services may refuse to deal with DBS/MMDS based on grounds of reasonable security, creditworthiness or impracticable business plan;
 -- Primestar MSO partners may not enter into or renew any exclusive agreements with existing national video or new or existing regional sports services; limits on exclusive agreements with new national services will be determined by a specified formula;
 -- Primestar Partners must name two independent directors to its Board of Directors.
 Primestar Partners is a joint venture of seven national cable television companies and G.E. American Communications, Inc., which owns the satellite used by Primestar. The cable television companies are subsidiaries of Comcast Cable, Continental Cablevision, Cox Cable Communications, Newhouse Broadcasting, Tele-Communications, Inc., Time Warner Cable and Viacom. Viacom invested in Primestar at its inception but has announced its intention to withdraw and no longer participates actively in the venture.
 The terms of the consent decree apply to GE American Communications only as a satellite provider; they do not effect any GE affiliated programming.
 Primestar, headquartered in Bala Cynwyd, Pa., currently provides its customers throughout the continental United States with 10 channels of programming via medium power Ku-band direct broadcast satellite.
 -0- 6/9/93
 /CONTACT: Lissa Perlman of Kekst and Company, 212-593-2655, for Primestar Partners/


CO: Primestar Partners, L.P. ST: Pennsylvania IN: TLS SU:

LR -- NY031 -- 0143 06/09/93 11:59 EST
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Date:Jun 9, 1993
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