SAN ANTONIO -- SBC Communications Inc. (NYSE: SBC) and EchoStar Communications Corporation (NASDAQ: DISH) today announced a first-of-its-kind broad strategic partnership that will give SBC companies the ability to aggressively market co-branded "SBC DISH Network" multichannel television services as a fully integrated part of their bundled services.

The two companies will begin work immediately on integrating operations, including order entry, customer service and billing, so they can begin offering customers the co-branded service in early 2004.

The alliance will deliver important strategic and marketing benefits for both EchoStar and SBC Communications. It will give EchoStar a powerful sales and marketing channel for its DISH NetworkTM satellite TV service, which today reaches more than 8.5 million customers nationwide. For SBC Communications, it fulfills a long-term strategic objective to integrate television entertainment into its consumer bundles and does so with a modest investment. The partnership will provide SBC Communications with an exclusive telecom partnership for single-family residences throughout the SBC 13-state traditional service area, where it provides service to more than 56 million access lines.

The co-branded "SBC DISH Network" satellite television service will offer SBC customers access to hundreds of popular, all-digital television channels, including movies, sports, news, music, international and high-definition TV programming. SBC companies will market the TV service in bundles that may include local telephony, long distance (where available), wireless and DSL Internet service.

As part of the multi-year agreement, SBC Communications will help fund the development of the co-branded bundled video services.

The new agreement furthers the SBC next-generation bundling strategy, allowing the company to offer the full spectrum of television, wireline, wireless and broadband services. The co-branded entertainment service will play a key role in meeting the needs of a significant segment of SBC customers, allowing them to select and customize complete communications and entertainment bundles, while also providing greater value and unmatched convenience.

Key elements of the partnership include:

"For the past several months, we've aggressively looked for the best way to integrate television into our bundles of consumer services. This first-of-its-kind milestone agreement with EchoStar gives us what we've been seeking and puts us in a great strategic position to compete with any provider — telecom or cable company — in the years ahead," said Edward E. Whitacre Jr., SBC chairman and CEO. "Consumers have waited a long time for true one-stop shopping, with single-source customer care and billing for TV, wireline, wireless and Internet service, and now it's finally here."

While EchoStar will continue to offer DISH Network satellite TV service in SBC areas through its well established retail channels, this new agreement provides a significant channel to further increase DISH Network sales. New and existing DISH Network customers will benefit from SBC bundled offerings for local, long distance (where available), wireless, or DSL Internet services. Consumers also will finally have an affordable and superior alternative to cable companies' bundle of television, broadband and telephony products.

"By co-branding SBC and DISH Network services, our customers will have greater exposure to the benefits of satellite TV with the added value and convenience of a bundle," said Charles Ergen, chairman and CEO of EchoStar. "With this partnership, we continue our efforts to make DISH Network even more competitive with cable TV providers."

Longer term, the companies also will work together to develop technology that combines the functionality necessary to conveniently receive DISH Network satellite television, DSL Internet and home networking as well as more convenient ways to receive SBC DISH Network bundled services. In a separate transaction, SBC also has agreed to make a $500 million investment in EchoStar in the form of convertible debt.

SBC Communications Inc.

EchoStar Communications Corp.