EXHIBIT 99.1

         KANSAS CITY, MO, January 11, 2000 - Golden Sky Holdings,  Inc.  (Golden
Sky) today  announced  that it has signed a  definitive  agreement to merge with
Pegasus  Communications  Corporation for  approximately  $1 billion in stock and
assumed liabilities.

         The  transaction  firmly  establishes  Pegasus,  which is based in Bala
Cynwyd,  Pennsylvania,  as  one  of  the  nation's  largest  multichannel  video
providers.  Privately held Golden Sky is the second largest independent provider
of DIRECTV  and  currently  serves  345,200  subscribers  in 24 states,  and has
exclusive rights to serve  approximately 1.86 million  households.  The combined
operations  of  Pegasus  and  Golden  Sky will  serve in excess  of 1.1  million
subscribers in 41 states and reach approximately 7 million rural households. The
1.1 million  subscribers will make Pegasus the third largest provider of DBS and
the 8th largest  multichannel video provider in the US, including  satellite and
cable.  Moreover,  Pegasus  is the  only  multichannel  video  provider  focused
exclusively on rural and underserved areas of the country.

         Pursuant  to the  terms of the  transaction,  Pegasus  will  issue  6.5
million shares of its Class A common stock to Golden Sky shareholders, currently
valued at $632 million,  based on yesterday's closing price of $97.25 per share.
Golden Sky's net debt and other liabilities  totaled  approximately $373 million
as of September  30, 1999.  The  transaction  has been approved by the boards of
directors of both companies.  Pending  shareholder and certain other  approvals,
the  transaction  is expected to close during the second  quarter of 2000.  Upon
completion of the transaction,  Golden Sky will become a wholly owned subsidiary
of Pegasus Communications Corporation.

         Golden Sky  Chairman  and CEO Rodney A. Weary  noted,  "We are  excited
about the  opportunity  to join forces  with  Pegasus.  The scale and  operating
efficiencies  expected  to result from this  merger  will  better  position  our
combined companies to be the preeminent provider of subscription  television and
other satellite  services to consumers in rural America.  We are proud of Golden
Sky's track record of rapidly  penetrating  our rural markets at low  subscriber
acquisition costs and our generally low subscriber churn results. We believe our
past  accomplishments  provide a firm foundation for the continued growth of our
combined businesses."

         Marshall W. Pagon, President, Chairman and CEO of Pegasus, stated, "The
acquisition  of Golden Sky is a major step in unifying the nation's  independent
providers of DIRECTV. With a critical mass of well over one million subscribers,
our  combined  operations  affirm  Pegasus'  position  as the  only  large-scale
distributor of multichannel video services focused exclusively on rural areas of
the US. Rural television  households  comprise one-third of the nation's viewing
audience and account for  approximately 67% of DBS subscribers  nationally.  The
addition of Golden Sky only serves to increase  the  opportunities  available to
grow our DBS business."

         "However,  additional  scale in our DBS  operations  is only the  first
benefit of this transaction for Pegasus.  The deal also substantially  increases
the  audience  to which we can offer new  digital  services  through the Pegasus
retail network, our 2,500-outlet distribution network, as we pursue our strategy
of bringing  digital  multichannel  video,  broadband  internet access and other
satellite-delivered  services  to rural  America.  The  success  of DBS in rural
America has illustrated  clearly the degree to which this substantial  market is
underserved by media and information  providers,  particularly  cable companies.
Our  distribution  network and rapidly  growing reach  uniquely  positions us to
bring the benefits of new technology to these homes,  and satellite is the ideal
medium to do so."

         Golden  Sky  Holdings,  Inc.  (www.gssdirectv.com)  is  an  independent
provider of  programming  services from  DIRECTV,  the nation's  leading  direct
broadcast  satellite company.  Golden Sky currently provides DIRECTV programming
to more than 345,000 subscribers and has approximately 70 offices throughout the
United States serving 57 rural markets.  DIRECTV  offers  subscribers  access to
more than 200 channels via satellite,  including  cable and broadcast  networks,
sports packages,  movies, and other premium services, using an 18-inch satellite
antenna dish and digital receiver.

         Pegasus Communications Corporation (www.pgtv.com) is one of the fastest
growing media companies in the United States. Pegasus is the largest independent
provider  of DBS  services  to rural  parts of the United  States on the DIRECTV
platform,  serving  approximately  1.1  million  DBS  subscribers  in 41 states.




Pegasus is also a  broadcaster  operating  and/or  programming  ten TV  stations
serving 2 million TV households in smaller markets in 10 states  affiliated with
FOX, UPN and the WB.

                  This  press  release   contains   information   about  pending
transactions,  and there can be no  assurance  that these  transactions  will be
completed.