HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.
HUGHES SPACE AND COMMUNICATIONS COMPANY
Communications and Customer Relations
P.O. Box 92919 (S10/S323)
Los Angeles, CA 90009
(310) 364-6363
www.hughespace.com		 HSC Logo


HUGHES FORMALIZES LONG-TERM AGREEMENT WITH SPAIN'S CASA

LOS ANGELES, July 30, 1997 -- A $500,000 contract for spacecraft structural panels is the cornerstone of a long-term memorandum of understanding (MOU) for cooperation on current and future spacecraft programs between Construcciones Aeronauticas, S.A. (CASA) of Madrid, Spain and Hughes Space and Communications International, Inc. of Los Angeles.

The contract to CASA, announced today, implements an MOU that could result in additional awards from Hughes valued at millions of dollars for future spacecraft manufacturing.

"This MOU with CASA enables Hughes to leverage the technological advances being made by the European space industry into our commercial programs," said Donald L. Cromer, chairman of Hughes Space and Communications International, Inc. and president of Hughes Space and Communications Company. "We are excited about the synergy possible between Hughes and CASA, and we look forward to a long and mutually beneficial relationship with them."

The first set of satellite panels, which is scheduled for delivery to Hughes during the first quarter of 1998, will be used on satellites being built for London-based ICO. Hughes is under contract for 12 ICO satellites, which will form a global satellite-based mobile communications system designed primarily to provide services to dual-mode (space/terrestrial) cellular phones. The first ICO satellite is scheduled for launch in 1998.

CASA is Spain's leading aerospace company. With approximately 8,000 employees, CASA produces three types of aircraft, the CN-235, C-212, and the C-101. CASA is also an active participant in the Airbus and Eurofighter programs. The company's space division, which currently employs 380 people, contributes to the various programs of the European Space Agency (ESA), and to international telecommunication satellites as well as to European military spacecraft. CASA also produces 3 percent of every Ariane launcher. Revenues in 1996 for the space division totaled $70 million.

Hughes Space and Communications International, Inc. is the international marketing organization for 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.

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