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Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
EchoStar Communications Corporation:
We have audited the accompanying consolidated balance sheets of EchoStar Communications Corporation and subsidiaries as of December 31,
2006 and 2005, and the related consolidated statements of operations and comprehensive income (loss), changes in stockholders’ equity
(deficit), and cash flows for each of the years in the three-year period ended December 31, 2006. These consolidated financial statements are
the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based
on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of EchoStar
Communications Corporation and subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their cash flows for
each of the years in the three-year period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles.
As described in note 2 to the accompanying consolidated financial statements, during the fourth quarter of 2006, the Company adopted
Securities and Exchange Commission Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in the Current Year Financial Statements . In accordance with the transition provisions of SAB No. 108, the
Company recorded a $62.3 million cumulative increase, net of tax, to accumulated deficit as of January 1, 2006. As discussed in note 3 to the
accompanying consolidated financial statements, effective January 1, 2006, the Company adopted Statement of Financial Accounting
Standards No. 123(R), Share-Based Payment .
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness
of EchoStar Communications Corporation’s internal control over financial reporting as of December 31, 2006, based on criteria established in
Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our
report dated February 28, 2007 expressed an unqualified opinion on management’s assessment of, and the effective operation of, internal
control over financial reporting.
KPMG LLP
Denver, Colorado
February 28, 2007
F-2