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Hughes Satellite Orders Exceed $1 Billion for 1st Quarter

LOS ANGELES, March 27, 1998 -- Telesat Canada has ordered the world's most powerful commercial satellite from Hughes Space and Communications International, Inc. (HSCI), a 15-kilowatt HS 702 model spacecraft called Anik F1. Financial terms were not disclosed.

"Anik F1 brings the new orders for satellites in the first quarter of 1998 to over $1 billion," said Steven D. Dorfman, vice chairman of Hughes Electronics Corporation. "It also brings the orders for our new HS 702 to six satellites," he said. The first HS 702 will be launched in the fourth quarter of this year.

The Anik F1 satellite will carry 84 active transponders to provide general telecommunications services for North and South America, from Telesat's operating slot of 107.3 degrees West longitude. Hughes will deliver the satellite in the first quarter of 2000.

Anik F1 takes full advantage of the technological advances Hughes incorporated into its new HS 702 spacecraft. To generate such high power, the two solar wings employ high-efficiency, dual-junction gallium arsenide solar cells. The payload consists of 48 Ku-band transponders and 36 in C-band, a 75 percent increase in capacity over Hughes' popular HS 601 series. To provide 15 years' service, Anik F1 carries Hughes' flight-proven xenon ion propulsion system (XIPS) for all on-orbit maneuvering. Construction will be done in the Hughes Space and Communications Company factory near Los Angeles International Airport.

HSCI also will provide satellite control software for Telesat's ground stations in Allan Park, Ontario, and Edmonton, Alberta.

"Hughes and Telesat's relationship goes back more than 25 years, to the first Anik satellites," noted HSCI President Michael J. Houterman. "Canada was the first country to have a domestic satellite system. In fact, one of my early assignments at Hughes was working on Anik A, then later on Anik C. So I'm glad Hughes is maintaining its bond with Telesat through Anik F1, providing our customer with the world's most capable satellite."

Hughes introduced the HS 702 in 1995, in response to customer requests for a high-power, high-capacity, multiple-payload satellite that could be delivered in minimum time and be launched on a variety of vehicles.

Anik F1 will be the ninth satellite developed by Hughes for Telesat, Canada's national satellite communications company, based in Gloucester, Ontario. "Anik" means "little brother" in the Inuit language.

Hughes built the Anik A series of three HS 333 model satellites, the first of which was launched Nov. 9, 1972. These carried 12 transponders each in C-band only, and had just 300 watts of power. They were followed 10 years later by the Anik C and D series, which were HS 376 models built by Hughes and Spar Aerospace Ltd. of Toronto. The three Anik C spacecraft each carried 16 transponders in Ku-band only, and had 900 watts. The two Anik D satellites carried 24 transponders in C-band and generated 1000 watts. (Anik C1, the last Anik C satellite to be launched, is still operational. Launched April 12, 1985, it is scheduled for retirement in 2002. Anik C2 was retired in January, 6.5 years beyond its 8-year intended service life. Both Anik D satellites have been retired.)

Hughes, through its Space and Communications Company (HSC), is the world's leading manufacturer of geostationary commercial communications satellites, having built nearly 40 percent of those operating worldwide. 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 HSC's international marketing and contracting subsidiary, and it holds contracts with 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.