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In this paper we investigate control across stochastic drop-out channels. We seek optimal linear controllers and receivers for mean-square stability that make use of the knowledge of whether a packet is received. We establish a fundamental bound on drop-out probability allowable for stabilization. The main result is a remote stabilization technique that always achieves this bound via acknowledgement from the actuation receiver. Controller information structure and decentralization issues are considered as they may further limit the achievable performance.