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 TO BUILD 2 SATELLITES FOR AMERICAN MOBILE RADIO (photo)

WASHINGTON, D.C., March 23, 1998 -- Hughes Space and Communications International, Inc., (HSCI) and American Mobile Radio Corp. (AMRC) announced a contract today for two HS 702 model satellites that will provide state-of-the-art program signals directly to car radios nationwide. Financial terms were not disclosed.

In about two years, the high-power satellites will begin sending approximately 50 channels of high-quality digital radio programming to fixed, mobile and portable radios across the contiguous United States. The contract calls for Hughes to deliver the satellites in geosynchronous orbit in April and August 2000, respectively. AMRC has an option for a third satellite. Launch vehicles will be announced later. Alcatel Espace of Toulouse, France, will provide the high-power, S-band, Digital Audio Radio Service (DARS) payload.

"Mobile radio service is an exciting new application of satellite technology, and one for which the HS 702 is ideally suited," said HSCI Chairman Donald L. Cromer. "These satellites will have 15.5 kilowatts of power to ensure the clearest, strongest signals to drivers no matter where in the continental U.S. they might be."

Hughes introduced the HS 702 in 1995 in response to customer requests for satellites with as much as 15 kilowatts of power and flexible payload capacity, that could be delivered in minimum time and be launched on a variety of vehicles. AMRC's contract brings to five the number of HS 702s ordered, with the first three going to PanAmSat Corporation. The first HS 702 will be launched in the fourth quarter of this year.

Hughes incorporated a number of technological advances into the HS 702 series. To generate such high power, the two solar wings employ high-efficiency, dual-junction gallium arsenide solar cells. Depending on the frequency bands desired, the payload can be configured with on-board digital signal processing or as many as 90 active transponders. To provide 15 years' service, the HS 702 carries Hughes' flight-proven xenon ion propulsion system (XIPS) for all on-orbit maneuvering.

AMRC is one of only two companies licensed in the United States to provide Digital Audio Radio Service. AMRC is a privately held company owned by American Mobile Satellite and WorldSpace Inc., both high-technology telecommunications companies headquartered in the Washington area. American Mobile Satellite is the only company currently providing L-band voice and data mobile satellite services in the United States. WorldSpace is an investor in WorldSpace International, the leading international satellite digital radio company scheduled to initiate service to Africa, Latin America and Asia beginning this year.

Alcatel Espace's chairman and CEO, Jean-Claude Husson, said: "Alcatel is proud to contribute to the development of the U.S. DARS system for AMRC. We are enthusiastic about our new partnership with HSCI and their confidence in Alcatel payloads. This powerful payload, designed, manufactured and tested in our plant at Toulouse, France, will benefit from our experience gained through the ongoing contract with WorldSpace, to implement the first global digital audio broadcasting satellite system by the year 2000."

Alcatel designs, manufactures and markets complete telecommunications systems. Activities include fixed switching networks, transmission systems, access systems, mobile communications infrastructure, business networking and submarine cable networks, as well as radio communications, space and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in the majority of its business. In 1997, the Telecom segment of Alcatel Alsthom registered total sales of more than 83 billion French francs. For more information, visit Alcatel via the web at http://www.alcatel.com.

The satellites will be built in the Los Angeles-area factory of Hughes Space and Communications Company, the world's leading manufacturer of geostationary commercial communications satellites. It also supplies spacecraft for communications and space exploration to the U.S. government, and builds weather satellites for the United States and Japan. HSCI is an HSC subsidiary that markets satellites internationally, and holds contracts with a number of launch vehicle providers for delivery of customers' satellites on-orbit. HSC 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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