DirecTVs Galaxy Brazil Locks Up HBO

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Sao Paulo, Brazil -- Galaxy Brasil and HBO Brasil have
inked a deal which gives the direct-to-home operator exclusive DTH rights to the
programmer's premium channel for five years. Galaxy Brazil markets the DirecTV DTH
service here.

According to sources, the deal -- which gives Galaxy Brazil
exclusive DTH rights to HBO, HBO2 and Cinemax -- is worth $200 million. Officials at
neither company would confirm that figure.

The deal is a trimmed-down version of one covering
Argentina that Galaxy and HBO signed earlier this year. That agreement gave Galaxy
exclusive rights to HBO's premium networks across all pay TV platforms.

The latest pact enables DirecTV to prevent competitor Sky
Brazil from carrying the channels. Sky is backed by News Corp., Brazil's
Organizaçoes Globo, Grupo Televisa S.A. of Mexico, and Liberty Media International Inc.
Sky already has its own stable of exclusive DTH programming, including Globo's
broadcast channels and the country's top soccer games.

Galaxy Brasil is a unit of Galaxy Latin America, which is
owned by Hughes Electronics Corp. and Venezuela's Cisneros Group of Cos. DirecTV had
230,000 subscribers as of March, while Sky currently claims 400,000 subscribers.

Hughes and Cisneros this year bought out Galaxy's
Brazilian partner, TVA, the country's second-largest MSO.

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