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EXHIBIT 99.1
PEGASUS COMMUNICATIONS ANNOUNCES
CREATION OF NEW HOLDING COMPANY AND
FORMATION OF NEW BROADBAND SUBSIDIARY
BALA CYNWYD, PA, November 9, 2000 - Pegasus Communications Corporation (NASDAQ:
PGTV) announced today that it will reorganize its existing businesses under a
newly created holding company. The new holding company will assume the name
Pegasus Communications Corporation. In connection with the reorganization:
o Pegasus' broadband and TV centric Internet access businesses will be
operated by Pegasus Broadband Communications, Inc. (Pegasus Broadband),
which will become a subsidiary of the new holding company.
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. As a result of the reorganization, Pegasus Satellite
will become a direct subsidiary of the new holding company.
o Pegasus' other assets (including intellectual property rights licensed from
Personalized Media Communications) will be held by other direct
subsidiaries of the new holding company.
Pegasus is effecting this reorganization to facilitate the anticipated growth of
its broadband and TV centric Internet access businesses and the capital
requirements that we anticipate that these businesses will require.
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. We anticipate that
the reorganization, which is subject to regulatory approval, will be completed
prior to yearend.
A separate press release has been issued today relating to an 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 42 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,
ZipLink, 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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Safe Harbor
Certain matters contained in this news release concerning the business outlook,
which are not historical facts in this press release are made pursuant to the
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995,
and will be considered forward looking statements. Such forward looking
statements may be identified with words such as "we expect", "we predict", "we
believe", "we project", "we anticipate" and similar expressions. Pegasus' actual
results may differ materially from those expressed or indicated by
forward-looking statements. There can be no assurance that these future events
will occur as anticipated or that the Company's results will be as estimated.
Factors which can affect the Company's performance are described in the
Company's filings with the Securities and Exchange Commission. This press
release also contains information about pending transactions and there can be no
assurances that these transactions will be completed.
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For further information, contact:
Yolanda Robins Jeff Majtyka
Pegasus Communications Corporation Brainerd Communicators, Inc.
(610) 934-7000 (212) 986-6667
[email protected] [email protected]
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