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TELENOR ORDERS ANOTHER TV SATELLITE FROM HUGHES (photo)

CAPE CANAVERAL, Fla., May 19, 1997 -- Telenor of Oslo, Norway, announced yesterday that it has ordered a follow-on spacecraft from Hughes Space and Communications International, Inc., (HSCI). Neither company disclosed financial terms.

The new satellite is called Thor III. It will be collocated with the other Thor satellites at Telenor's Nordic Hot-Bird position at 1 degree West longitude, and will provide direct-to-home television programming to the Nordic countries and central and eastern Europe. Hughes, of Los Angeles, will deliver the satellite on orbit to Telenor by August 1998. Hughes will provide a high-power HS 376 model satellite, as well as arrange launch services and insurance, upgrade the satellite control center and train Telenor's controllers.

While the final contract is being negotiated, Telenor authorized Hughes to begin work in order to complete the satellite by next year's deadline. Thor III will initially have 14 active 47-watt transponders in Ku-band, and will use gallium arsenide solar cells to generate 1400 watts of spacecraft power. Service life is a minimum of 11.5 years. The agreement contains an option for an additional satellite.

Thor III is the 51st HS 376 model satellite to be ordered from Hughes by customers around the world. Telenor's fleet will thus consist of three HS 376 models. Thor I is an HS 376 model originally built for British Sky Broadcasting, which sold it in orbit to Telenor in 1992. Telenor ordered Thor II from Hughes in November 1995.

HSCI is the international marketing organization within Hughes Space and Communications Company (HSC). HSC is the world's leading manufacturer of commercial communications satellites, having built 40 percent of those in operation. It is a unit of Hughes Electronics Corporation. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.