EXHIBIT 99.1

                                                            [Directv Group logo]

CONTACT:   BOB MARSOCCI
           310-964-4656

            DIRECTV TO ACQUIRE ASSETS OF PEGASUS SATELLITE TELEVISION

               AGREEMENT WILL ENHANCE COMPETITION IN RURAL AMERICA

           EL SEGUNDO, CALIF., AUG. 2, 2004 - The DIRECTV Group, Inc. (NYSE:
DTV) today announced an agreement with Pegasus Satellite Television, Inc., and
related entities (Pegasus) for DIRECTV to purchase the primary direct broadcast
satellite assets of Pegasus, including rights to all DIRECTV subscribers
activated through Pegasus. DIRECTV will pay $875 million in cash, subject to
certain adjustments. The payment reflects full satisfaction and the dismissal of
all claims between the parties, including the $63 million judgment entered in
May in favor of DIRECTV against Pegasus. Taking into account this judgment, the
aggregate purchase price is approximately $938 million.

           The agreement has been approved by the creditors' committee in
Pegasus' Chapter 11 proceedings. The transaction is expected to be completed
within the next four to six weeks, subject to the approval of the U.S.
Bankruptcy Court in Portland, Maine, and to applicable antitrust filings and
approvals. DIRECTV expects that the bankruptcy court hearing to approve the
transaction will be held in late August. DIRECTV also expects to complete the
migration of Pegasus customers to DIRECTV within 30 to 45 days thereafter.
Pegasus had approximately 1.08 million customers as of June 1, 2004.

           Pegasus Satellite Communications, Inc., and certain of its
subsidiaries, including Pegasus Satellite Television, Inc., filed a voluntary
petition for relief under Chapter 11 of the U.S. bankruptcy code on June 2,
2004.

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DIRECTV TO ACQUIRE PEGASUS ASSETS
PAGE 2

           Chase Carey, president and CEO of The DIRECTV Group, said, "This
agreement gives DIRECTV a true ability to reach every home in America. DIRECTV
will have unencumbered access to an additional 10 million households and will be
able to offer consumers in those rural markets the full benefits of DIRECTV(R)
programming, pricing and service. The number of subscribers to DIRECTV services
in rural areas has steadily declined in the last few years and this will enable
us to reverse that trend and grow our subscriber base in these areas going
forward. This transaction also has significant financial benefits including
significant increased short-term cash flow and long-term value from both
increased subscribers and cash flow."

                  DIRECTV and Pegasus have agreed to work together upon close of
the transaction to ensure a seamless migration of Pegasus customers to DIRECTV,
and DIRECTV customers in Pegasus territories will continue to receive
uninterrupted service during this transition process. "The transition will be
seamless and there will be communications with Pegasus customers to provide them
with information about this transaction, as well as the planned migration
process," said Carey.

           Pegasus provides DIRECTV programming to rural areas in 41 states
nationwide.

           This release may contain certain statements that we believe are, or
may be considered to be, "forward looking statements" within the meaning of
various provisions of the Securities Act of 1933 and of the Securities Exchange
Act of 1934. Such forward-looking statements can generally be identified by use
of statements that include phrases such as "believe," "expect," "anticipate" or
other similar words or phrases. Similarly, statements relating to future events
also are forward-looking statements. All of these forward-looking statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from the future results expressed or implied by the
forward-looking statements due to various factors, including the outcome of any
appeal which might be filed, other litigation which might be initiated or
regulatory factors. More detailed information on the matters referred to in this
release, including litigation and other potential factors which could affect the
rights or obligations of DIRECTV, Inc., is contained in the filings of The
DIRECTV Group, Inc. and DIRECTV Holdings LLC with the U.S. Securities and
Exchange Commission.

           The DIRECTV Group, Inc. (NYSE: DTV) is a world-leading provider of
digital multichannel television entertainment, broadband satellite networks and
services, and global video and data broadcasting. The DIRECTV Group is 34
percent owned by Fox Entertainment Group, which is approximately 82 percent
owned by News Corporation Ltd.

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