Dear Valued Subscribers,

Last Friday, June 12, 2009, all US terrestrial TV networks switched offtheir analog broadcasts and began transmitting exclusively in digital format,per mandate of Deficit Reduction Act of 2005 by the US Congress.

Digital TV (DTV) technology makes it possible for stations to broadcastmultiple channels of programming all at once (called multicasting), instead ofbraodcasting one channel at a time. Digital television can also be used todeliver future interactive video and data services that analog technologycan\'t provide and also free up valuable bandwith for wireless broadbandapplications.

As early as 2001, many Cable Television providers worldwide have alsoadopted digital technology, enabling subscribers the ability to view moreprogram choices as well as enhance their TV and internet surfing experience.The proliferation of low cost LCD and plasma flat Screen TVs is also fuelingthe demand for more quality digital content and High Definition (HD)programming..

It has been PARASAT\'s vision to continuously be the pioneer in the latesttechnological advances pertaining to pay tv and broadband services. As such, weare proud to inform you that in mid July, next month, we will be launching thePhilippine\'s first Digital Cable television service outside Metro Manila.Parasat subscribers in Cagayan de Oro and surrounding towns will soon be thefirst to enjoy more program content and faster broadband speeds at affordableprices.

Please also be informed that the transition to completely digital servicewill be gradual over a period of two years. As such, we will maintain ourcurrent Analog pacakages simultaneous with the new Digital tiers. However, tomake way to digital, we will be removing a number of analog channels,specifically those with foreign content in the International package. TheAsian/Chinese channels as well as the European ones will be made available onlyin our new Digital Packages.

The Digital tiers will include new channels such as History, BIO, Crime andInvestigation, AXN Beyond, SCIFI, Animax, as well as new offerings fromDiscovery and National Geographic. Negotiations for more programs from HBO, MGMare ongoing; we expect our digital line up to nearly double in the next 24months. High Definition (HD) channels are also espected to be offered soon.

In line with this, we are to expect some technical adjustments inpreparation of our Digital Service. Interruptions that may be experienced willbe snowy signal, intermittent signal & black & white color on somechannels as well as changes in the existing channel line up. We assure you thatthese interruptions will be temporary and our Technical Team will be doingtheir best in making this transition as smooth and short as possible. We hopeyou will bear with us.

Thank you for your continued patronage and we hope to continue serving youin years to come.

More power and God bless.

Engr. Elpidio M. Paras