Channels Spring 2016

Executive Corner Continued Success and Growth By Grant Barber, Executive Vice President and Chief Financial Officer of Hughes

Published by Hughes Corporate Communications Department Eric Gann, Editor Aaron James, Co-editor

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In this issue, we speak with Hughes Executive Vice President and Chief Financial Officer Grant Barber about the company’s major milestones in 2015 and ask him to detail what we can expect in 2016 and beyond.

Correspondence is invited and should be directed to: Arunas Slekys, Vice President, Corporate Marketing Email: Hughes Network Systems, LLC 11717 Exploration Lane Germantown, MD 20876 USA

Q. Last year saw a long list of major achievements for Hughes. Can you summarize the key financial results and how it positions the company for 2016 and beyond? A. Hughes finished 2015 with another record year in both revenue and earnings. Revenue was $1.35 billion—a first in Hughes history. Earnings also grew, at a faster pace than the year-over- year revenue, which we’re very proud of. As a finance person, you look to grow earnings and generate cash faster than revenue. And as a leader in the satellite industry, it positions us well into 2016 and beyond, because we can leverage that with some of our new initiatives. Q. Which major milestones from 2015 or expected in 2016 are most notable? A. Our consumer business is the largest revenue driver and has the highest visibility. In 2015, we crossed a significant milestone of 1 million HughesNet ® subscribers in North America. But all three of our other businesses—International, Enterprise (which includes government) and Mobile Satellite—were success stories in 2015, with significant long-term orders and

bookings. That confirms our ability to compete and win across all market sectors globally, which bodes well for 2016 and the coming years. Looking to the near future, the launch of Echostar XIX later this year—with over 180 Gbps capacity—will add significant capacity to grow the North American market, including solid partners in both Canada and Mexico. And the recent successful launch of Eutelsat’s 65W satellite—of which we have leased all the Ka-band payload—sets the stage for us to launch HughesNet consumer broadband service in Brazil during the second half of 2016. Q. With Hughes launching HughesNet services in Brazil, can you address how long Hughes has pursued this initiative and the type of investments or partnerships required to make it happen? A. Hughes has steadily built a successful enterprise business in Brazil since 2003 and now has the necessary network operations and customer care to tackle the consumer

About Hughes Network Systems

Hughes Network Systems, LLC (Hughes) is the global leader in satellite broadband for home and office, delivering innovative solutions and a comprehensive suite of HughesON™ managed services for enterprises and governments worldwide. HughesNet® is the #1 high-speed satellite Internet service in the marketplace, with offerings to suit every budget. To date, Hughes has shipped more than 5 million systems to customers in over 100 countries, representing approximately 50 percent market share. Its products employ global standards approved by the TIA, ETSI, and ITU organizations, including IPoS/DVB-S2, RSM-A, and GMR-1. Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide and is a wholly owned subsidiary of EchoStar Corporation (NASDAQ:SATS), a premier global provider of satellite operations and digital TV solutions. Special thanks to our contributors: Grant Barber, Tony Bardo, Kathy Bell, Mary Belt, Holly Bowen, Dan Brown, Mike Cook, John Fanelli, Eric Gann, Paul Gaske, Rafael Guimaraes, Doug Gunster, Aaron James, Ken Kalinyak, Dan Losada, Kim Murphy, Dave Rehbehn, Sampath Ramaswami, Jessica Schurtz, Arunas Slekys, and the Hughes Pubs department. ©2016 Hughes Network Systems, LLC. All Rights Reserved. Hughes, HughesNet, SPACEWAY 3, JUPITER, and HughesON are trademarks of Hughes Network Systems, LLC

side. The market demand on the consumer side is clearly there for

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