HUGHES GLOBAL SERVICES, INC. HUGHES SPACE AND COMMUNICATIONS COMPANY Public Relations Department P.O. Box 92919 (S10/S323) Los Angeles, CA 90009 Media Relations (310) 364-6363 Investor Relations (310) 662-9688 www.hughesglobal.com

This contract, the most comprehensive ever with the state for satellite communications, puts HGS on the California Multiple Award Schedules (CMAS). This is an umbrella contract that allows state agencies to purchase satellite equipment and products directly from HGS, without having to undergo the lengthy process of seeking competitive bids. HGS has been performing under a similar contract for federal agencies since February 1999.

There is no ceiling on the amount of business the company can do with the state.

HGS, part of Hughes Electronics Corporation, was created to provide local, state and federal agencies, as well as commercial organizations, with access to a full range of satellite communications products and services. This is HGS's first major contract at the state level.

"Being a CMAS supplier opens the door to HGS's providing a lot of potential capabilities to California state agencies," said HGS President Ron Swanson. "For example, many state agencies will need emergency communications in the event of natural disasters such as fires, floods and earthquakes. Satellites by their nature are immune to such disasters, and can provide communications links to critically affected areas when land lines are down."

Other state applications expected to benefit from the increased availability of satellite communications include distance learning and training, telemedicine, agency-to-agency networks and remote access to the Internet.

HGS's arrangement with the federal government is similar. After completing one year under a pilot project, HGS was awarded a new, six-year contract in February by the General Services Administration's Federal Technology Service (GSA-FTS). Under that contract, which has a $490 million ceiling, any federal agency can access HGS's spectrum of satellite services through the website http://www.hughesglobal.com.

HGS's current satellite product and service offerings under the GSA-FTS contract include domestic and international satellite communications for mobile users; fixed satellite services, including long-term and occasional-use bandwidth from multiple providers; terminals and satellite-based videoteleconferencing; and DirecPC® data delivery capability.

In addition, HGS is including its DemandNet^TM and SkyMedia^TM products in the GSA-FTS contract. DemandNet combines commercial very small aperture terminal (VSAT) technology with a global satellite constellation to provide affordable worldwide connectivity on demand. SkyMedia provides cost-effective compressed digital video delivery and digital data broadcast for distance learning and data sharing.

Although not currently provided, future GSA and state contracts with HGS will include Spaceway^TM terminals for low-cost broadband-on-demand and other emerging communications services, thus ensuring the government has access to the most advanced technology in satellite communications as it becomes available.