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HUGHES TO BUILD NEW SATELLITE FOR SWEDEN (photo)

LOS ANGELES, June 12, 1997 -- Hughes Space and Communications International, Inc., has been awarded a contract for a telecommunications satellite and ground station support services from Nordiska Satellitaktiebolaget (NSAB), a joint venture between Swedish Space Corporation, Tele Danmark A/S, and Teracom AB.

The new satellite, to be called Sirius 3, will be an HS 376 high-power model satellite and will provide direct-to-home television services to the Scandinavian region. Hughes will also upgrade NSAB's satellite control center at Esrange, Kiruna, and will provide training to the satellite controllers. Financial terms were not disclosed.

"We are very pleased that NSAB has chosen Hughes to build this satellite, and although we've been supporting them for several years, this is our first direct sale to a Swedish customer," said Donald L. Cromer, president of Hughes Space and Communications Company. "We welcome the opportunity to assist them in expanding their direct-to-home television services."

The current NSAB constellation includes Sirius 1, also an HS 376 model, which was built for British Satellite Broadcasting and sold to NSAB in-orbit in 1993, and Sirius 2, which is being built by another manufacturer and will be launched later this year. Sirius 3 will replace Sirius 1 and will be located at 5 degrees East longitude.

Sirius 3 will have 15 Ku-band transponders and will use gallium arsenide solar cells to generate 1400 watts of spacecraft power. Hughes will deliver the satellite on-ground to NSAB in July 1998. Planned service life is 12 years, assuming an Ariane launch. NSAB will make launch vehicle arrangements separately.

Sirius 3 is the 52nd HS 376 model satellite to be ordered from Hughes by customers around the world, and will be built at Hughes' Integrated Satellite Factory in El Segundo, Calif.

Hughes Space and Communications International is the international marketing organization within Hughes Space and Communications Company, 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.