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EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.1
ECHOSTAR DBS CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
<Table>
<Caption>
FOR THE NINE MONTHS
FOR THE YEARS ENDED DECEMBER 31, ENDED SEPTEMBER 30,
--------------------------------------------- -------------------
2002 AS (UNAUDITED)
1999 2000 2001 RESTATED(1) 2003 2003 2004
--------- --------- -------- ----------- -------- -------- --------
Income (loss) before taxes .......................... $(562,285) $(607,540) $ 32,497 $ 127,832 $333,114 $291,821 $221,177
Interest expense (net of amounts capitalized) ....... 196,390 193,685 192,900 338,883 407,030 285,101 312,295
Amortization of capitalized interest (estimate) ..... 10,708 10,708 10,708 12,395 14,455 8,868 8,289
Interest component of rent expense(2) ............... 192 253 700 904 1,515 797 1,188
--------- --------- -------- --------- -------- -------- --------
Earnings before fixed charges .................... $(354,995) $(402,894) $236,805 $ 480,014 $756,114 $586,587 $542,949
========= ========= ======== ========= ======== ======== ========
Interest expense (net of amounts capitalized) ....... $ 196,390 $ 193,685 $192,900 $ 338,883 $407,030 $285,101 $312,295
Capitalized interest ................................ -- -- -- 23,876 8,428 7,035 --
Interest component of rent expense(2) ............... 192 253 700 904 1,515 797 1,188
--------- --------- -------- --------- -------- -------- --------
Total fixed charges ............................... $ 196,582 $ 193,938 $193,600 $ 363,663 $416,973 $292,933 $313,483
========= ========= ======== ========= ======== ======== ========
Ratio of earnings to fixed charges .................. -- -- 1.22 1.32 1.81 2.00 1.73
========= ========= ======== ========= ======== ======== ========
Deficiency of available earnings to fixed charges ... $(551,577) $(596,832) $ -- $ -- $ -- $ -- $ --
========= ========= ======== ========= ======== ======== ========
</Table>
(1) We restated our 2002 consolidated financial statements to reverse an accrual
of approximately $30.2 million, on a pre-tax basis, related to the replacement
of smart cards in satellite receivers owned by us and leased to consumers.
(2) The interest component of rent expense has been estimated by taking the
difference between our gross rent expense and the net present value of our rent
expense using the weighted average cost of debt for our senior notes during each
respective period. The rates applied are approximately 9% for the years ended
December 31, 1999, 2000, 2001, 2003; 10% for the year ended December 31, 2002,
and approximately 10% and 7% for the nine months ended September 30, 2003 and
2004, respectively.