A Utah-based satellite communications firm, indicted for its role in transmitting allegedly obscene videos to Alabama television subscribers, has quit handling the American Exxxtasy Channel videos.

Euell Screws, a Montgomery lawyer representing U.S. Satellite Corp. of Murray, Utah, said the company on Monday "voluntarily terminated its contract" with Home Dish Satellite Networks Inc. of New York, doing business as the American Exxxtasy Channel.The American Exxxtasy Channel and U.S. Satellite were among four corporations and 10 individuals indicted Feb. 16 by a Montgomery County grand jury. The defendants transmitted obscene videos, with titles such as "Hardcore Girlfriends" and sexually graphic scenes, to subscribers with home satellite dishes in Alabama, the complaint says.

Colette Connor, vice president for advertising and promotion for Home Dish, said the American Exxxtasy Channel went off the air Monday night except for a color bar and a note that the network was experiencing technical difficulties.

"We were informed by U.S. Satellite that they wouldn't uplink our programming," said Connor.

She said Home Dish is looking for another company to transmit its signal to a communications satellite for broadcast to home dish owners across the nation.

Screws said the company's refusal to transmit the videos was in direct response to the indictments announced by Montgomery County District Attorney Jimmy Evans.

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"U.S. Satellite denies that it had any willful intention or ability to violate any local, state or federal statute on obscenity," Screws said. "We assure the citizens of Alabama that, no matter how innocent and involuntary our participation may have been, U.S. Satellite regards its reputation as a licensed common carrier as too important to await the ultimate determination of whether (Home Dish's) materials are indeed illegal."

"The charge of illegality having been made, U.S. Satellite, after careful review, has elected to act promptly to terminate its contract," said Screws.

Home Dish, in a prepared statement, said the company "believes its activities are lawful and constitutionally protected by the First Amendment and intends to vigorously contest the proceedings."

Along with Home Dish and U.S. Satellite, the corporate defendants indicted are GTE Spacenet Corp., owner of the communications satellite used for the transmissions in question, and its parent corporation, General Telephone and Electronics Corp.

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