HUGHES GLOBAL SERVICES, INC.
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HUGHES TO LEASE DEFENSE SATELLITE TRANSPONDERS TO AUSTRALIAN DEFENCE FORCE - (photo)


LOS ANGELES, May 11, 1998 -- Under a unique arrangement between Hughes Global Services, PanAmSat Corporation, and the Australian Defence Force, a Hughes-built communications satellite formerly used by the U.S. Navy is providing new communications services to the Australian Defence Force. Last week, Leasat 5, under a multi-million dollar contract to Hughes Global Services, Inc. from the Royal Australian Navy, began its service from its new orbital location at 156 degrees East longitude. Leasat 5 will provide ultra high frequency satellite communications services to the Australian Defence Force for five years, if all options are exercised.

To provide service to Australia, the satellite had to be relocated from its original position over the Indian Ocean to its new position of 156 degrees East longitude. Hughes led the effort, working with a number of U.S. government and international agencies, as well as the Australian Defence Force, to obtain the necessary approvals for satellite relocation and frequency use.

Hughes has worked in conjunction with Leasat 5's owner, PanAmSat Corporation, to meet the ultra-high frequency satellite communications needs of the Australian Defence Force. PanAmSat owns and operates the satellite and is providing satellite capacity to Hughes Global Services. PanAmSat will monitor and control the spacecraft's attitude and orbital position via tracking, telemetry, and control, and will also monitor and control Leasat 5's communications payload.

"This satellite was literally within days of being propelled into useless orbit, since its service to the U.S. Department of Defense had been completed," said Ronald V. Swanson, president of Hughes Global Services. "The mission of Hughes Global Services is to provide local, state, and federal governments with access to space, enabling commercial satellite owners to provide services quickly while following government contracting procedures. Hughes was able to match the capabilities of Leasat 5 to the requirements of the Australian Defence Force.

"Because we have three decades of experience as a government contractor, we were able to expedite the U.S. government approval for the relocation and operation of Leasat 5 on behalf on behalf of our customer, the Royal Australian Navy. It's a win-win situation, and exemplifies how Hughes Global Services operates," Swanson said.

Leasat 5 began limited service to the Australian Defence Force on Oct. 17, 1997. On March 4, the relocation began with the successful execution of the first of a series of on-board thruster burns. Service began on May 7. The PanAmSat Operations Center in Long Beach, Calif. provides the tracking, telemetry, and control capability via its Guam ground station, and also plans and executes all orbital maneuvers.

Leasat 5 was built by Hughes Space and Communications Company. The 14-foot-diameter spin-stabilized satellite was one of a new line of wide-body spacecraft designed exclusively for launch from the Space Shuttle. As the last of a five-satellite constellation, Leasat 5 was launched in January 1990 and leased to the U.S Navy, acting on behalf of the Department of Defense, to provide worldwide communications satellite service for an initial period of five years. The Leasat satellites were used for mobile air, surface, subsurface, and fixed Earth stations of the Navy, Marine Corps, Air Force and Army.

The communications payload of Leasat 5 consists of two large helical UHF antennas, providing receive and transmit capability in the UHF band (240 to 400 MHz). Telemetry, command and Fleet Broadcast uplink and beacon are in the "exclusive" portions of the SHF band (7250 to 7500 MHz, and 7975 to 8025 MHz). Twelve UHF repeaters provide the main communications capability.

Hughes Global Services is the same entity that is currently performing an experimental mission to salvage a high-power communications satellite, stranded in a useless orbit after a launch failure on Christmas Day, 1997. The satellite, informally referred to as HGS-1, is being sent around the moon, using lunar gravity to adjust the satellite's inclination and reposition it in a useable orbit. If successful, Hughes will sell or lease the satellite.

Hughes Global Services is a subsidiary of Hughes Space and Communications Company, 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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