HUGHES GLOBAL SERVICES, INC.
Communications and Customer Relations
P.O. Box 92919 (S10/S323)
Los Angeles, CA 90009
(310) 364-6363
www.hughespace.com		 HGS Logo


NEW HUGHES SUBSIDIARY SUPPORTS GOVERNMENT TELECOMMUNICATIONS NEEDS

LOS ANGELES, Sept. 23, 1997 -- Hughes Government Services, a business area formed last November to provide local, state, and federal agencies with access to telecommunications services, has become a Hughes subsidiary and has been renamed Hughes Global Services, Inc.

The new subsidiary, headquartered in El Segundo, Calif., establishes a "one-stop shopping" capability and furthers Hughes' commitment to providing domestic and foreign government agencies with access to commercially available satellite communications.

"When we began this service nearly a year ago, our mission was to work within the procurement practices of the federal government and to assist them with acquiring commercially available telecommunications access," said Ron Swanson, president of Hughes Global Services. "What we are seeing is that this need is not limited to the federal government, but is actually much broader and includes state and local agencies, both in the United States and abroad. The demand is high, and the establishment of a separate subsidiary enables us to respond to market needs immediately and cost competitively."

To achieve this, Hughes Global Services has agreements with bandwidth providers on existing satellites for offerings to customers. The unit also has agreements in place with terminal equipment suppliers and satellite mobile telephone providers. These service agreements enable Hughes Global Services to rapidly package services on a customized basis.

"The federal government has issued several requests for proposals for the exact kind of services we are providing," Swanson said. "Basically, they have end-to-end service and network needs on a global basis which match the cost efficient capabilities seen on existing commercial satellites. The challenge is to provide access to commercial satellite telecommunications in accordance with their acquisition regulations. Hughes has been contracting with the government for more than three decades. It's a customer we understand and know how to deal with."

In addition to responding to specific proposals, Hughes Global Services also plans to provide off-the-shelf products and services, such as DemandNetTM, a service announced in May which enables users to reserve and allocate bandwidth surges on a near-realtime, as-needed basis and which can be adjusted among multiple users of a network, regardless of size.

"At the heart of our subsidiary is a broad background in telecommunications, ranging from satellite design and manufacture to installation and services," Swanson said. "We understand the technology end-to-end and are prepared to respond to the unique needs of each customer."

Hughes Global Services 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.

###