The Dish Network User's Resource

Sky Angel®
3050 Horseshoe Drive N. Suite 290, Naples, Florida 34104
(239) 403-9130 Voice /(239)403-9105

March 21, 2007

Dear Lifelong subscriber:

Thank you for your continued interest and support of the Sky Angel Christian satellite service. As you know, your lifelong subscription covers reception of our basic programming package of faith-based programming. In the past, we have elected to make available to you at no additional charge, the four special secular channels (Hallmark, Hallmark Movie Channel, HGTV, and Fox News). Recent developments at Dominion Video Satellite, Inc. (“Sky Angel”) has made it necessary to require those who wish to continue receiving these four channels to remit a small monthly service fee of just $4.99 per month (plus tax if applicable) beginning May 1. 2007. Of course, there is no obligation to receive these four channels and your lifelong subscription to our faith-based programming package will not be affected if you decide that you no longer wish to receive these four special secular channels.

The need to start charging a service fee for the special secular channels has been driven by an increase in the cost of those four channels to Sky Angel. In the last few months, these programmers have increased the cost for these four channels to Sky Angel more than 79%. The additional cost to Sky Angel to provide these four special channels just to our life long subscribers is more than $950,000 for 2007 and we simply are unable to absorb that cost. Sky Angel continues to be challenged by the high cost of programming, insurance and operating costs. The damage caused by hurricane Wilma in 2005 resulted in a substantial increase in our insurance costs for 2006 and beyond. We have instituted a number of effective cost-cutting measures and continue to look for ways to ensure that Sky Angel’s quality programming is made available to you in the most cost-effective way possible.

It has not been our policy to raise funds by encouraging donations for support as our programmers need to do. Our revenue comes only by subscription, advertising and service charges. Our full channel programmers are not charged by Sky Angel for their air time as it was our founder Mr. Robert Johnson’s desire to allow the programmers to put amounts normally paid for air time back into the development of their programming. Distribution of radio and television programming is very expensive and many of our programmers could not survive without the free air time we give them. Many of them have to pay secular cable and DBS companies for carriage of their channels.

Enclosed you will find an “Information Update and Billing Request” and a prepaid return envelope on which you can indicate your option to receive the four special secular channels at a small service charge of only $4.99 per month (plus tax if applicable) beginning May 1, 2007. Again, you are under no obligation to receive the special channels and we will not bill you the new service charge unless you tell us that you want to continue receiving the four secular channels by indicating that choice on the prepaid return form we have provided with this letter. If you wish to continue receipt of these four special secular channels, you simply need to indicate your desire to continue reception of the four channels and your willingness to remit the $4.99 special service charge for these channels on that Information Update and Billing Request and drop it into the mail.

It is imperative that you return the enclosed Information Update and Billing Request in the enclosed prepaid envelope no later than April 15, 2007 indicating your decision. If you elect not to receive the four special secular channels, do not respond, or do not remit the service charge when billed, you will no longer receive the four channels after May 1, 2007.

Additionally, so that we might verify and update your equipment information, it is very important for you to locate your set top receiver serial number and the number on the “smart card” (looks like a credit card inserted in the slot in the front of your set top box) and return that information to Sky Angel on the enclosed prepaid form no later than April 15, 2007. You will find simple instructions on how to use your remote to obtain the information from your set top receiver in Section “D” of the enclosed Information Update and Billing Request. If you are unable to retrieve the information or have questions on how to obtain it, please call the toll free number 1-866-759-6743 and one of our customer service representatives will be happy to assist you. Accurate recording and timely return of the information requested on the Information Update and Billing Request will enable Sky Angel to determine information necessary for the providing of uninterrupted service to you after May 1, 2007 regardless of your decision as to the secular special channels.

In the months ahead, Sky Angel will be making some changes to our programming in an effort to improve your viewing pleasure. Our plans include adding a gospel music channel, offering approximately 12 hours of Sky Angel specials on Saturdays and Sundays and moving the Spirit channel to a time channel slot. We continue to negotiate with Echo Star for the return of the three channels we lost as a result of our transponder failure in April of last year and to look for other quality Christian programming. Please feel free to drop us a line from time-to-time with your suggestions on additional programming. Programming has become increasingly expensive but we will do our best to consider your suggestions.

We hope you will understand the many challenges that face Sky Angel in the coming years. Our satellite is aging and our costs are increasing. A new satellite has been quoted to us at more than a $150 million dollars. We are currently exploring a number of new technologies to bring Sky Angel programming to our subscribers and are trusting that God will provide a solution. God has blessed Sky Angel in the past and He continues to bless and give us hope for the future. We will keep you informed as to our progress. Thank you for your support and please remember our staff in your prayers. We are working diligently to pursue the legacy of my father, the late Mr. Robert Johnson, and to fUllfill his vision of using technology to bring the Gospel message to the world. Knowing that you are there and supporting us with your prayers provides much strength as we seek His will for the future of Sky Angel.

Thank you for your prayerful support,

Robert W Johnson, Jr.
CEO