The DIRECTV Group Q4 Results Cap Record Setting Financial Performance in 2008

EL SEGUNDO, Calif. — The DIRECTV Group, Inc. (NASDAQ:DTV) today reported that fourth quarter 2008 revenues increased 9% to $5.31 billion, operating profit before depreciation and amortization increased 11% to $1.22 billion and operating profit declined 6% to $579 million compared to last year’s fourth quarter. The DIRECTV Group reported that fourth quarter net income of $332 million declined 5% and earnings per share increased 7% to $0.32 compared with the same period last year.

DIRECTV U.S. Segment

Fourth Quarter Review

Net subscriber additions of 301,000 were nearly 10% higher than last year’s fourth quarter primarily due to a 6% increase in gross additions and a flat monthly churn rate of 1.42%. The increase in gross additions to 1,044,000 was mainly due to growth in the direct sales and retail distribution channels due in large part to more competitive customer promotions and higher demand for HD and DVR services. DIRECTV U.S. ended the quarter with 17.62 million subscribers, an increase of nearly 5% over the 16.83 million subscribers reported on December 31, 2007.

Subscriber Data (in 000’s except Churn):

                                           Three Months        Twelve Months
                                     Ended December 31,   Ended December 31,
                                     ------------------   ------------------
                                       2008        2007     2008        2007
                                     ------      ------   ------      ------
Gross Subscriber Additions            1,044         986    3,904       3,847
Average Monthly Subscriber Churn      1.42%       1.42%    1.47%       1.51%
Net Subscriber Additions                301         275      861         878
Cumulative Subscribers               17,621      16,831   17,621      16,831

Full Year Review

Gross subscriber additions increased 57,000 for the full year 2008 to 3,904,000 primarily due to growth in the direct sales and retail distribution channels due in large part to more competitive customer promotions and higher demand for HD and DVR services.Churn in 2008 fell from 1.51% to 1.47%, the lowest average monthly churn rate in nine years, primarily due to tighter credit policies and increased penetration of HD and DVR services. Net subscriber additions of 861,000 declined slightly from 2007 as the increase in gross additions was offset by higher subscriber disconnects.

DIRECTV Latin America Segment

The DIRECTV Group owns approximately 74% of Sky Brazil, 41% of Sky Mexico and 100% of PanAmericana, which covers most of the remaining countries in the region. Sky Mexico, whose results are accounted for as an equity method investment and therefore are not consolidated by DIRECTV Latin America (DTVLA), had approximately 1.76 million subscribers as of December 31, 2008 bringing the total subscribers in the region to 5.64 million.

Fourth Quarter Review

In the fourth quarter of 2008, DTVLA’s gross subscriber additions increased 4% to 341,000 primarily due to DTVLA’s pre-paid offers in Brazil and Venezuela, as well as continued strong demand for DTVLA’s post-paid service. The increase in average monthly churn in the quarter to 1.59% was primarily due to increased competition, a more challenging macroeconomic environment and the growth in DTVLA’s prepaid business. The higher gross additions combined with the increase in churn resulted in net additions of 160,000 in the quarter. The total number of DIRECTV subscribers in Latin America as of December 31, 2008 increased 18% to 3.88 million compared to 3.28 million as of December 31, 2007.

Subscriber Data (in 000’s except Churn):

                                           Three Months        Twelve Months
                                     Ended December 31,   Ended December 31,
                                     ------------------   ------------------
                                       2008        2007     2008        2007
                                     ------      ------   ------      ------
Gross Subscriber Additions              341         328    1,393       1,080
Average Monthly Subscriber Churn      1.59%       1.35%    1.78%       1.38%
Net Subscriber Additions                160         199      623         588
Cumulative Subscribers                3,883       3,279    3,883       3,279

Full Year Review

In 2008, DTVLA’s gross subscriber additions increased 29% to 1,393,000 primarily due to strong demand in Brazil, Argentina, and Venezuela. Average monthly churn in 2008 increased to 1.78% mostly due to two downward subscriber adjustments totaling 78,000 subscribers in Sky Brazil as a result of the inconsistent application of churn policies in previous periods and the completion of the Sky Brazil and DIRECTV Brazil business integration. Excluding these adjustments, average monthly churn would have increased to 1.58% compared to 1.38% in 2007 due to increased competition, faster growth, DTVLA’s prepaid business and a more challenging macroeconomic environment.

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