DBS Deal Downs Gemstar Stock

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Gemstar TV Guide International Inc. lost $3.05 per share Monday, or 13 percent, followed by a further loss of $1.06 Tuesday, in the wake of the announcement that EchoStar Communications Corp.
would acquire General Motors Corp.'s Hughes Electronics Corp., parent of DirecTV
Inc., in a stock and cash deal valued at $25.8 billion.

Gemstar stock closed at $20.14 per share Monday, falling to $19.08 Tuesday.

Gemstar is 40 percent owned by News Corp., the other Hughes suitor that
dropped out of the bidding for the company late Saturday. News Corp. had been
negotiating with Hughes for about 18 months.

Investors were apparently nervous that an EchoStar/Hughes merger would
endanger Gemstar's current relationship with DirecTV. Gemstar licenses an
interactive program guide to Thomson Consumer Electronics and other
manufacturers that supply set-top boxes to DirecTV.

Most analysts viewed the concerns as overblown because Gemstar did not
include any potential benefits from a News Corp./DirecTV merger in its current
forecasts.

DirecTV has about 10.3 million customers. EchoStar has about 6.4 million
subscribers.

Gemstar declined to comment.

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