ARCHOS Completes Strategic Alliance with Echostar

June 23, 2005 -- ARCHOS announced today it has completed a strategic alliance with EchoStar Communications Corporation, a leading U.S. provider of advanced digital television services. Under the terms of the agreement, EchoStar invested approximately $9 million (7 million Euros) in ARCHOS and ARCHOS will provide portable digital video recorder technology and products to EchoStar.

The EchoStar investment in ARCHOS was made through the private issuance of convertible bonds at a subscription value of 3.16 Euros, or approximately $4.10, per bond. The bonds are convertible into approximately 26 percent of ARCHOS share capital. The ARCHOS bonds bear interest at an annual rate of 5 percent. The bonds are convertible at any time by EchoStar, with the conversion rate set at one share per bond, subject to possible further adjustments. Subject to certain restrictions, ARCHOS has the right to convert or redeem a portion of the bonds at any time. The terms of the investment were approved by ARCHOS shareholders in April 2005.

The strategic alliance between EchoStar and ARCHOS includes an extensive new product development initiative as well. ARCHOS will provide EchoStar with portable digital video recorders that allow for high-speed transferring of video content directly from select DISH Network set-top boxes to ARCHOS portable devices. EchoStar turned to ARCHOS as the primary partner in their portable DVR strategy because they see ARCHOS products as the most advanced on the market today. It is anticipated that the EchoStar portable DVR products will be available from EchoStar in the summer to early fall of 2005. Additional information on the DISH Network and ARCHOS portable DVRs and ARCHOS own set-top-box technologies will be announced shortly.

More information is available online at www.archos.com.

Source ARCHOS