2003 Results :  3Q DIRECTV Non-GAAP
 DIRECTV Holdings LLC
 Non-GAAP Financial Reconciliation and Other Data 

(Dollars in Millions)
(Unaudited)

 Pre-Marketing Margin Reconciliation to Operating Profit
           
For the Three Months Ended
 For the Nine Months
Guidance
           
September 30,
 Ended September 30,
Full Year
           
2003
2002
 2003
2002
2003
           

         
   
Operating profit        
 $    112.2
 $   102.4
       418.9
 $     171.6
~$ 475
Add back: Subscriber acquisition costs    
    Third party customer acquisitions  
       366.4
     332.4
        985.6
    1,014.9
**
    Direct customer acquisitions  
        111.9
       45.9
        249.1
        111.7
**
  Retention, upgrade and other marketing costs   
       143.3
       92.2
        325.8
       286.2
**
  Depreciation and amortization expense  
        122.6
     102.1
        371.1
       283.2
~ 525
   




Subtotal          
       744.2
     572.6
     1,931.6
    1,696.0
~ 2,715
           





Pre-marketing margin*      
 $    856.4
 $  675.0
$ 2,350.5
 $ 1,867.6
~ $3,190
           





Pre-marketing margin as a percentage of revenue*  
44.3%
41.8%
43.2%
40.3%
~42%



 Other Data
           
 For the Three Months Ended
 For the Nine Months Ended
   
           
September 30,
 September 30,
 
           
 2003
2002
 2003
2002
 
           

 
Average monthly revenue per subscriber (ARPU)  
 $    63.70
 $  59.20
 $     61.20
 $    58.10
 
Average monthly churn -%    
1.6%
1.7%
1.5%
1.7%
 
Average subscriber acquisition costs (SAC)  
 $       590
 $     555
 $        575
 $       535
 
Total number of subscribers - platform (000's)  
     11,852
   10,921
      11,852
     10,921
 
Total owned and operated subscribers (000's)  
      10,275
     9,201
      10,275
       9,201
   




(*) Pre-Marketing Margin, which is a financial measure that is not determined in accordance with accounting principles generally accepted in the United States of America, or GAAP, is calculated by adding amounts under the captions “Subscriber acquisition costs”, “Retention, upgrade and other marketing costs” and “Depreciation and amortization expense“ to “Operating Profit“. This financial measure should be used in conjunction with other GAAP financial measures and is not presented as an alternative measure of operating results, as determined in accordance with GAAP. Hughes and DIRECTV U.S. management use Pre-Marketing Margin to evaluate the profitability of DIRECTV U.S.’s current subscriber base for the purpose of allocating resources to discretionary activities such as, adding new subscribers, retaining and upgrading existing subscribers and for capital expenditures. To compensate for the exclusion of “Subscriber acquisition costs” and “Retention, upgrade and other marketing costs”, management also uses operating profit and operating profit before depreciation and amortization expense to measure profitability.Hughes and DIRECTV U.S. believe this measure is useful to investors, along with other GAAP measures (such as revenues, operating profit and net income), to compare DIRECTV U.S.’s operating performance to other communications, entertainment and media companies.

Hughes and DIRECTV U.S. believe that investors also use current and projected Pre-Marketing Margin to determine the ability of DIRECTV U.S.’s current and projected subscriber base to fund discretionary spending and to determine the financial returns for subscriber additions.

(**) No individual guidance provided.

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