Hughes Electronics Corporation and EchoStar Communications Corporation today announced the companies have reached a settlement to terminate the proposed merger of Hughes and EchoStar, effective
immediately. Under terms of the settlement, EchoStar has paid to Hughes $600 million in cash, and Hughes will retain its 81% ownership position in PanAmSat. The companies reached this settlement
because the proposed merger could not be completed within the time allowed by the merger agreement. This was due to action taken by the Department of Justice, 23 states, the District of Columbia and
Puerto Rico to block the merger as well as the Federal Communications Commission's decision to send the merger application to a hearing.
