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PEGASUS COMMUNICATIONS ANNOUNCES
TIMING OF CREATION OF NEW HOLDING COMPANY
BALA CYNWYD, PA, December 19, 2000 - Pegasus Communications Corporation (NASDAQ:
PGTV) announced today that it anticipates completing its previously announced
reorganization of its existing businesses under a newly created holding company
by the end of January 2001. The new holding company will assume the name Pegasus
Communications Corporation. In connection with the reorganization:
o Pegasus' existing DBS business will be retained by Pegasus Communications
Corporation, which will be renamed Pegasus Satellite Communications, Inc.
("Pegasus Satellite"). Pegasus Satellite will also hold Pegasus' broadcast
television business and its broadband and TV centric Internet access
businesses. As a result of the reorganization, Pegasus Satellite will
become a direct subsidiary of the new holding company.
o Pegasus' intellectual property rights licensed from Personalized Media
Communications and its Ka and Ku band FCC license applications will be held
by another direct subsidiary of the new holding company.
Pegasus is effecting this reorganization to increase its flexibility to pursue
new activities and initiatives through other subsidiaries of the new holding
company rather than through the existing company.
As a result of the reorganization, all of the capital stock of the existing
Pegasus Communications Corporation, including its Class A Common Stock and
preferred stock, will be exchanged for shares of the new holding company. The
Class A Common Stock of the new holding company will trade on the NASDAQ
National Market under the symbol "PGTV." Pegasus Communications Corporation's
existing debt will remain obligations of Pegasus Satellite.
A separate press release has been issued today relating to the commencement of
the exchange offer of the Series A Preferred Stock to be held by the new holding
company.
About Pegasus
Pegasus Communications Corporation (www.pgtv.com) is one of the fastest growing
media companies in the United States and serves approximately 1.3 million DBS
subscribers in 41 states. Pegasus is the tenth largest multichannel video
provider in the United States and the only publicly traded cable, satellite TV
or Internet services company exclusively focused on providing service to rural
and underserved areas. Through agreements with MetaTV, Liberate Technologies,
Genuirty, Hughes Network Systems and other companies, Pegasus is expanding the
array of advanced digital products and services it offers through the more than
3,000 independent retailers in the Pegasus Retail Network to include interactive
television, narrowband TV centric Internet access and broadband Internet access
to TV's, PC's and other Internet access appliances.
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For further information, please contact:
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Yolanda Robins Jeff Majtyka
Pegasus Communications Corporation Brainerd Communications, Inc.
(610) 934-7030 (212) 986-6667
[email protected] [email protected]
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