<PAGE>
PEGASUS COMMUNICATIONS CORPORATION LAUNCHES
EXCHANGE OFFER FOR SERIES A PREFERRED STOCK
BALA CYNWYD, PA, December 19, 2000 - Pegasus Communications Corporation (NASDAQ:
PGTV) announced today that it has launched its previously announced offer to
issue shares of a newly issued series of preferred stock in exchange for the
Series A Preferred Stock to be issued by its new holding company upon completion
of its holding company reorganization. Unless extended or terminated, the
exchange offer will expire on January 18, 2001.
In the reorganization, the existing company that operates under the name Pegasus
Communications Corporation will change its name to Pegasus Satellite
Communications, Inc. and become a subsidiary of a new holding company (the "New
Holding Company") that will assume the name Pegasus Communications Corporation.
In the reorganization, the existing Series A Preferred Stock will become
identical Series A Preferred Stock of the New Holding Company. In the exchange
offer, Pegasus Satellite Communications, Inc. will offer to exchange a new
series of its preferred stock for the New Holding Company's Series A Preferred
Stock. The terms of the new series will be identical to those of the existing
series. The offer will not affect the other series of preferred stock. It is
intended that the exchange offer and the reorganization will be completed
concurrently.
The securities being offered in the exchange offer will not be registered under
the Securities Act of 1933 and may not be offered or sold in the United States
without registration or an applicable exemption from registration requirements.
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
customers 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,
Genuity, 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.
###
For further information, please contact:
----------------------------------------
Yolanda Robins Jeff Majtyka
Pegasus Communications Corporation Brainerd Communications, Inc.
(610) 934-7030 212) 986-6667
[email protected] [email protected]
---------------- ---------------------
