Press found on NSATF website:
(Norsat America is a subsidiary of NSATF. It is one branch of NSATF. It is a distributor of DirecTV and DirecPC. It is one of the four largest distributors of DirecTV and the largest of DirecPC.)
Norsat America Announces Second Quarter DIRECTV© Distribution Statistics
BURNABY, BRITISH COLUMBIA, CANADA ? July 19, 1999 ? Norsat International Inc. (TSE?NII; Nasdaq?NSATF)
today announced its DIRECTV distribution statistics for the quarter ended June 30, 1999:
260% increase in DIRECTV product sales compared to the second quarter of 1998
5% share of overall DIRECTV product sales compared to 3% for the same quarter in 1998
190% increase in DIRECTV product sales year to date compared with the first two quarters of 1998
?It is especially gratifying to increase our overall share of a growing market,? said Norsat America president, Edward A. Johnson.
?We have worked hard to strengthen our dealer network and we are beginning to see the benefits. Our June sales of 7,145 Hughes
receivers represents a 6% market share for the month.? Norsat America Inc. operates a network of 14 branch offices across the
U.S. and is a distributor of DIRECTV to the DTH market and a DIRECTV MSO for the MDU market.
The company also distributes DirecPC.
From latest quarterly report:
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At Norsat America, sales for the quarter rose 52 per cent from a year ago, driven by an
acceleration in DIRECTV installations, which in turn benefited from an expansion in Norsat?s
DIRECTV dealer network. In addition, installations of DirecPC (high-speed Internet access via
satellite) were substantially up from last year, ranking Norsat as the largest DirecPC provider in the
United States. With the bright outlook for DIRECTV and DirecPC, Norsat America continued to
channel resources into these markets rather than the multiple dwelling unit market, which
nevertheless remains a strategic intermediate-term target.
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The big news from AOL on their push of DirecTV and DirecPC
Monday June 21, 10:16 am Eastern Time
Company Press Release
America Online and Hughes Electronics Form Strategic
Alliance to Market Unparalleled Digital Entertainment
and Internet Services
DULLES, Va. and EL SEGUNDO, Calif.--(BUSINESS WIRE)-- June 21, 1999--
Will Accelerate Growth of DIRECTV, AOL TV, and Launch AOL-Plus
High-Speed Internet Service via DirecPC Nationwide Satellite System
AOL to Make $1.5 Billion Strategic Investment in Hughes
America Online, Inc. (NYSE:AOL - news), the world's leading interactive services company, and Hughes Electronics Corporation
(NYSE:GMH - news), the world's leading provider of digital television entertainment and satellite-based data services, today
announced a strategic alliance to develop and market uniquely integrated digital entertainment and Internet services nationwide.
The Companies said that this alliance will accelerate subscriber growth and revenue-per-subscriber for Hughes' DIRECTV
television entertainment service and DirecPC satellite-based broadband Internet delivery system, as well as help develop and
extend the reach of America Online's AOL TV interactive television and AOL-Plus high-speed Internet services. America Online
and Hughes also plan to jointly develop new content and interactive services for the U.S. market and elsewhere in the world.
This new alliance builds on the Companies' earlier agreement to develop a ``combination' set-top receiver to make
DIRECTV/AOL TV available to consumers next year. The Companies will launch an extensive cross-marketing initiative to
package and extend the reach of both AOL TV and DIRECTV.
Hughes and America Online will market the DIRECTV/AOL TV package to America Online's more than 16 million AOL and
CompuServe members in the U.S., as well as to millions more consumers of its Internet brands. Hughes also will market AOL TV
to its more than 7 million current DIRECTV subscribers, and to millions of potential new subscribers through its extensive network
of retail outlets.
The Companies will also make AOL-Plus available nationwide via the DirecPC satellite Internet network by early 2000. This
initiative builds on America Online's recently announced partnerships with Bell Atlantic and SBC Communications to deliver DSL
broadband connectivity to AOL members. The DirecPC network provides broadband download speeds up to 14 times faster than
the standard 28.8 kilobits-per-second analog modem. AOL-Plus members will be able to transmit information back over standard
telephone lines at speeds as fast as 56.6 kbps.
Hughes Network Systems, a unit of Hughes, provides the DirecPC system and service, and will design and initially manufacture
the combination DIRECTV/AOL TV set-top receiver.
The alliance will also enhance the development of Hughes' next-generation satellite system for two-way, broadband connectivity,
known as Spaceway(tm), scheduled to launch in the year 2002. Hughes is investing $1.4 billion to design, manufacture and launch
the North American system and accompanying ground infrastructure.
Under the agreement, America Online will make a $1.5 billion, strategic investment in a General Motors equity security, which
carries a 6-1/4% coupon rate, that is automatically convertible into GM Class H common stock (GMH) in three years. GM will
immediately invest the $1.5 billion in a security of Hughes under similar terms where it will be employed to implement the strategic
alliance between AOL and Hughes. America Online said the investment would be non-dilutive to its earnings.
Over the next three years, Hughes is making a major commitment to market AOL TV and AOL-Plus, as well as accelerate the
growth of DIRECTV and DirecPC. Among its planned expenditures are:
More than $500 million for AOL-Plus via DirecPC through both America Online brands and Hughes retail channels;
Up to $500 million for DIRECTV, including more than $150 million in marketing to AOL members;
Approximately $400 million for the combined DIRECTV/AOL TV services; and
Approximately $100 million for DirecDuo, which enables subscribers to access the DIRECTV and DirecPC networks with
a single satellite dish.
Hughes and America Online have agreed to explore making broadband satellite offerings available in Latin America as that market
evolves.
Alliance Advances ``AOL Anywhere' and Hughes Internet and Interactive Strategies
Steve Case, Chairman and Chief Executive Officer of America Online, Inc., said: ``Our strategic alliance with Hughes is a major
step forward in our 'AOL Anywhere' strategy, as well as a valuable e-commerce opportunity and yet another addition to our
broadband capabilities.
It benefits America Online across all fronts and puts more pieces in place for the next wave of interactive services. AOL TV and
DIRECTV are a winning combination, and we believe that AOL members and DIRECTV subscribers, as well as other television
viewers, will see it the same way.``
Mr. Case added: ``We are committed to providing our AOL-Plus high-speed service over all broadband technologies -- DSL, cable,
satellite, and wireless -- as they emerge for the mass market audience. With this alliance, we will be able to offer our members the
only broadband connectivity network with a national footprint. Together with our DSL partnerships, this new Hughes alliance will
help ensure that millions of AOL members across the U.S. will be among the first to benefit from convenient and easy-to-use
broadband Internet access.'
Mike Smith, Chairman and Chief Executive Officer, Hughes Electronics, said: ``This is an alliance of the No. 1 brand in interactive
services and the No. 1 brand in digital television entertainment. As a result, Hughes will not only accelerate its already
record-setting DIRECTV subscriber growth, but we will also attain entirely new revenues from Internet-based service
opportunities.
``It's another demonstration of Hughes' leadership in digital communications, and our vision of being the premier global provider of
integrated entertainment and information products and services. We created the high-power digital satellite television industry five
years ago and set a new standard for multi-channel television entertainment. By joining with America Online in this long-term,
strategic relationship, we're making it clear that DIRECTV will remain the market leader.'
Mr. Smith added: ``Offering AOL-Plus via DirecPC clearly marks Hughes' commitment to being a leader in the Internet economy.
Our technological leadership allowed us to launch DirecPC to the consumer market in 1997, well before any of our competitors.
As we offer the power of high-speed, satellite-delivered data services to AOL members, we'll just be scratching the surface of the
major role that satellites can and will play in the broadband Internet market.'
Bob Pittman, President and Chief Operating Officer of America Online, Inc., said: ``This alliance with Hughes demonstrates
America Online's continuing commitment to embracing all mass market technologies that enrich our members' interactive
experiences. AOL TV is a natural enhancement for DIRECTV's successful service. And the key to our broadband strategy is to
offer our members all the services unique to these higher speeds, in addition to all the narrowband features, services, and content
they now receive.
``Through this alliance, along with the partnerships we've forged with telecommunications companies, we will now have the ability
to offer best-of-breed services ranging from long distance telephone and broadband access to interactive TV and dial-up
connectivity at attractive package prices to our members -- making AOL even more central to their daily lives.'
About America Online
Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet
technologies, and e-commerce services.
America Online, Inc. operates: two worldwide Internet services, America Online, with more than 17 million members, and
CompuServe, with approximately 2 million members; several leading Internet brands including ICQ, AOL Instant Messenger and
Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Navigator and Communicator browsers; and
AOL MovieFone, the nation's No. 1 movie listing guide and ticketing service.
Through its strategic alliance with Sun Microsystems, the Company develops and offers easy-to-deploy, end-to-end e-commerce
and enterprise solutions for companies operating in the Net Economy.
About Hughes Electronics Corporation
Hughes Electronics Corporation is the world's leading provider of digital television entertainment, and satellite and wireless systems
and services. The Company's DIRECTV, Inc. unit is the United State's leading digital television entertainment service, with more
than 7.3 million subscribers.
DIRECTV provides more than 210 channels of sports, entertainment, news, music and family programming, including exclusive
and original programming. Hughes also holds major interests in DIRECTV businesses in Latin America and Japan. Hughes owns
81 percent of PanAmSat Corporation (NASDAQ:SPOT - news), the world's leading commercial provider of global satellite-based
communications services. Two other units, Hughes Space and Communications Company and Hughes Network Systems (HNS),
are leading providers of satellite systems, and ground systems and services, respectively.
HNS is the world leader in satellite-based data communications, and provides the DirecPC system and service. DIRECTV is a
trademark of DIRECTV, Inc. DirecPC is a registered trademark of Hughes Network Systems. The earnings of Hughes
Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock. Visit Hughes on the
World Wide Web at www.hughes.com.
Note to Editors:
America Online Chairman and CEO Steve Case and Hughes Electronics Chairman and CEO Mike Smith will discuss the strategic
alliance between AOL and Hughes Electronics in a conference call with members of the media at 12:00 PM (Eastern time) today.
Reporters in the United States should call 888-753-6315 to participate.
Members of the media outside the U.S. should call 415-908-6256. A replay of the call will be available beginning at 2 p.m. until
Midnight (Eastern time), June 23, 1999 by dialing 800-633-8284 (619-812-6440 for international calls), pin No. 12611519.
Contact:
America Online
AOL Media Contacts:
Jim Whitney, Tricia Primrose, 703/265-1746
AOL Investor Relations:
Michael Gross, Michael Broder, 703/265-1271
or
Hughes Media Contact
Richard Dore, 310/662-9670
Hughes Investor Relations, 310/662-9688
or
For detailed product information, reporters can also
contact the Hughes business unit media representatives:
DIRECTV
Jeff Torkelson, 310/535-5062
www.directv.com
or
Hughes Network Systems/Spaceway
Judy Blake, 301/401-4004
www.hns.com
or
DirecPC
Fritz Stolzenbach, 301/212-7890
www.direcpc.com |
