HUGHES OPERATES FIRST COMMERCIAL XENON ION PROPULSION SYSTEM

HUGHES SPACE AND COMMUNICATIONS COMPANY
Communications and Customer Relations
P.O. Box 92919 (S10/S323)
Los Angeles, CA 90009
(310) 364-6363
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HUGHES OPERATES FIRST COMMERCIAL XENON ION PROPULSION SYSTEM (photo)

LOS ANGELES, Oct. 6, 1997 -- Three units of Hughes Electronics Corporation made history today through the joint design, launch, and operation of the world's first commercial xenon ion propulsion system. The system, known as "XIPS" (pronounced "zips") has successfully completed activation on the PAS-5 communications satellite, which was launched from Kazakhstan on Aug. 27.

Satellite propulsion systems are used to maintain the position of the satellite in its proper orbit and attitude. XIPS is a revolutionary propulsion system which uses the impulse generated by a thruster ejecting electrically charged particles, or ions, at very high velocities. Xenon, a highly dense gas, is the primary propellant and was chosen because it offers the highest thrust of all the inert, non-reactive gases. The ions ejected by the Hughes XIPS travel at a speed of 62,900 miles per hour (30 kilometers per second), an increase in efficiency which is 10 times greater than the chemical bipropellant systems currently in use.

"We've made history today by operating the world's first commercial XIPS system," said C. Michael Armstrong, chairman of Hughes Electronics Corporation. "Hughes' history is full of technological firsts, and the new Hughes Electronics will use technology, talent and investment to lead in markets, to build new businesses, and to create new value. We are focused on both the technology and the services. XIPS is evidence of both. This is truly a landmark event."

Key to the XIPS advantage is improved efficiency. With a XIPS system onboard, propellant mass on a satellite designed for 12 to 15 years of operation can be reduced by up to 90 percent. As a result, customers can opt to launch a satellite with reduced launch costs, or, because of the weight tradeoffs possible with the XIPS system, can either extend satellite life or increase payload capabilities while holding satellite weight constant.

For Hughes Space and Communications Company, XIPS is a key differentiator among other satellites on the market.

"The benefits of XIPS have long been recognized and endorsed by our customers," said Donald L. Cromer, president of Hughes Space and Communications Company. "The PAS-5 satellite, featuring XIPS technology, was ordered in March of 1995. Our current backlog of 18 601HP and 702 satellites contains 15 satellites which will use XIPS. Today's event provides confirmation to our customers of this new technology."

"The XIPS system that became operational today has been under development here at Hughes since the early 1960s," said Tim Fong, manager of Hughes Electron Dynamics Division, the manufacturer of XIPS. "The design work was initiated by Hughes Research Laboratories, and was later joined by Hughes Electron Dynamics Division, which is also manufacturing the XIPS system to be used on NASA's Deep Space 1 spacecraft when it is launched in July 1998. In 1992, Hughes Space and Communications Company committed to the use of XIPS in the manufacture of its high-power satellites, and on Aug. 27 history was made when PanAmSat Corporation launched the first commercial communications satellite to feature XIPS."

Hughes Space and Communications Company is the world's leading manufacturer of commercial communications satellites. Hughes Electron Dynamics Division is a world leader in the design and manufacture of microwave, traveling wave-tube amplifiers, and ion propulsion systems. Hughes Research Laboratories leads the research and development efforts for Hughes Electronics. All are units of Hughes Electronics Corporation. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.

Hughes is also the controlling shareholder in PanAmSat Corporation (NASDAQ: SPOT), the world's leading commercial provider of global satellite services.

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