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.hughespace.com

"These three talented executives exemplify the vision and drive needed to maintain our position as the world's premier satellite and space systems provider," Krekel said. "They will continue to focus on excellent performance on all fronts: top quality, schedule performance and customer satisfaction. Furthermore, they will be keys to our success as we transition to Boeing and expand our market pursuits."

HSC, Spectrolab, Inc., and Hughes Electron Dynamics will form the new Boeing Satellite Systems, Inc., (BSS) subsidiary when the purchase from Hughes Electronics Corp. concludes Friday.

In his new position, DeSarla, 55, will function in a chief operating officer role, emphasizing performance and execution of the business plan. Besides supervising the satellite manufacturing business of the former HSC, he will also oversee Spectrolab and Electron Dynamics Designs, formerly Hughes Electron Dynamics.

DeSarla had been HSC's Senior Vice President of Operations since he joined the company in March 1999. Before that he had been Vice President of Operations, then President, of AlliedSignal's Aerospace Equipment Systems Group. Earlier, he had been AlliedSignal's Vice President of Operations and Productivity at the Corporate staff level. Prior to AlliedSignal, he worked at Case Corp., most recently as Corporate Vice President of Operations.

DeSarla was a member of the management team for the start-up of Nissan Motor Manufacturing Corp., USA, serving in both manufacturing and product quality leadership roles. Previously he held management positions in engineering and product quality at Ford Motor Co. DeSarla, of Rancho Palos Verdes, Calif., holds a bachelor of science degree in mechanical engineering from the Detroit Institute of Technology and a master's degree in industrial management from Central Michigan University.

Livanos will report to DeSarla as he joins Hughes/BSS. He will be responsible for all the product groups, Supply Chain Management, Factory Operations, Production Planning and Control, Facilities Administration, and Safety, Health and Environmental Affairs.

For the past four years, Livanos, 52, served as Executive Vice President of Operations at Space Systems/Loral, with responsibility for all engineering, manufacturing, quality and program management activities. Prior to Loral, he worked at TRW, spending most of his 16 years there in the Electronics Systems Group. Livanos progressed through increasingly larger management roles within TRW, ranging from directed research, product development, manufacturing and program management responsibilities. His early career experience includes work at Rockwell International, Hughes Research Labs and the Jet Propulsion Laboratory, and as a Research Fellow and Lecturer in Applied Physics at the California Institute of Technology.

Livanos holds BS and MS degrees in mechanical engineering, as well as a Ph.D. in engineering science and physics, all from CalTech.

Maehl, 52, has been with Hughes for a year, when he joined the management team as Vice President for Strategic Development. His new position as Senior Vice President expands his responsibilities to include all new business efforts, strategic planning, mergers and acquisitions, marketing and development of new systems.

Before joining HSC, Maehl was president of CyberStar, a limited partnership created and managed by Loral Space and Communications Ltd. He also was a Loral corporate Vice President. Previously he was Senior Vice President for Strategic Ventures and Senior Vice President of Advanced Programs at Space Systems/Loral.

Maehl was Vice President of Commercial Programs at Fairchild Space and Defense, and General Manager of Commercial Communications Satellite Programs at GE Astro-Space, before those companies were acquired by Loral. Maehl's other satellite industry experience includes working on the Pioneer Venus program as instrument manager for the ion mass spectrometer for NASA's Goddard Space Flight Center.

Maehl, of Palos Verdes, Calif., earned his BS in physics from the University of Missouri, St. Louis, and his MS and Ph.D., also in physics, from Washington University, St. Louis. He attended the Program for Management Development at the Harvard Business School in 1986.

"These are world-class leaders for the world-class team of 9,000 engineers, technicians and other professionals that make up the new Boeing Satellite Systems," Krekel said.