DISH Network Announces Second Quarter 2012 Financial Results

YOY gross subscriber additions increase 16 percent; YOY net additions improved; Subscriber churn rate declines YOY

ENGLEWOOD, CO — DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.57 billion for the quarter ended June 30, 2012 compared with $3.59 billion for the corresponding period in 2011.

The DISH® branded direct broadcast satellite (“DBS”) pay-TV service had 14.061 million subscribers in the United States as of June 30, 2012.

DISH lost approximately 10,000 net subscribers during the three months ended June 30, 2012, compared to a loss of approximately 135,000 net subscribers during the same period in 2011. This decrease in the number of net subscribers lost versus the same period in 2011 resulted from higher gross new subscriber activations and a lower churn rate. Higher gross new subscriber activations were primarily due to increased advertising associated with our Hopper set-top box during the second quarter 2012. During the three months ended June 30, 2012, DISH added approximately 665,000 gross new subscribers compared to approximately 572,000 gross new subscribers during the same period in 2011, an increase of 16.3%.

Our average monthly subscriber churn rate for the three months ended June 30, 2012 was 1.60% compared to 1.67% for the same period in 2011. While churn improved compared to the same period in 2011, increased competitive pressures could increase churn in the future. Our churn rate is also impacted by, among other things, the credit quality of previously acquired subscribers, our ability to consistently provide outstanding customer service, and our ability to control piracy.

Our gross new subscriber activations continue to be negatively impacted by increased competitive pressures, including aggressive marketing and discounted promotional offers. In addition, telecommunications companies continue to grow their customer bases. Our gross new subscriber activations continue to be adversely affected by sustained economic weakness and uncertainty, including, among other things, the weak housing market and lower discretionary spending.

DISH added approximately 94,000 net subscribers during the six months ended June 30, 2012, compared to a loss of approximately 77,000 net subscribers during the same period in 2011. The increase versus the same period in 2011 primarily resulted from a decrease in our average monthly subscriber churn rate and higher gross new subscriber activations due to increased advertising associated with our Hopper set-top box.

Our average monthly subscriber churn rate for the six months ended June 30, 2012 was 1.48% compared to 1.57% for the same period in 2011.

Our churn rate was positively impacted in part because we did not have a programming package price increase in the first quarter 2012, but did during the same period in 2011. During the six months ended June 30, 2012, DISH added approximately 1.338 million gross new subscribers compared to approximately 1.253 million gross new subscribers during the same period in 2011, an increase of 6.8%.

Operations Data:

                                                              For Three Months
                                                                Ended June 30,         Variance
                                                             -----------------  ---------------
                                                                2012      2011   Amount       %
                                                             -------   -------  -------   -----
DISH Network subscribers, as of period end (in millions)      14.061    14.056    0.005     0.0
DISH Network subscriber additions, gross (in millions)         0.665     0.572    0.093    16.3
DISH Network subscriber additions, net (in millions)         (0.010)   (0.135)    0.125    92.6
Average monthly subscriber churn rate                          1.60%     1.67%  (0.07)%   (4.2)
Average monthly revenue per subscriber ("ARPU")               $78.11    $78.06    $0.05     0.1
Average subscriber acquisition cost per subscriber ("SAC")      $806      $795      $11     1.4

We have been deploying receivers that utilize 8PSK modulation technology and receivers that utilize MPEG-4 compression technology for several years. These technologies, when fully deployed, will allow more programming channels to be carried over our existing satellites. Many of our customers today, however, do not have receivers that use MPEG-4 compression and a smaller but still significant percentage do not have receivers that use 8PSK modulation. We may choose to invest significant capital to accelerate the conversion of customers to MPEG-4 and/or 8PSK to realize the bandwidth benefits sooner. In addition, given that all of our HD content is broadcast in MPEG-4, any growth in HD penetration will naturally accelerate our transition to these newer technologies and may increase our subscriber acquisition and retention costs.