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HUGHES JOINS LOCKHEED MARTIN TEAM IN SBIRS LOW CONTEST

EL SEGUNDO, Calif., Sept. 15, 1998 -- Hughes Space and Communications Company (HSC) has joined the team led by Lockheed Martin that is competing to build a system of missile-tracking satellites for the Department of Defense.

The project is known as SBIRS Low, for Space-Based Infrared System Low. Using a network that includes low-earth-orbit satellites, SBIRS Low will acquire and track enemy missiles during the midcourse of their flight. This early warning information will enable U.S. missile defense systems to launch interceptors.

HSC will provide the communications payloads, develop associated communications architecture and perform systems engineering. The Lockheed Martin team includes Boeing and Gencorp Aerojet. The team is competing for one of two awards expected this November for the two-year program definition phase, after which the Air Force will select one team to proceed with engineering, manufacturing and development.

"Being on this team is a good fit," said Michael J. Gianelli, HSC vice president for government operations. "We're joining with companies that are leaders in their respective roles. For Hughes' part, we bring 35 years' experience building communications satellites and payloads. SBIRS Low has the potential for 20 to 40 spacecraft, and we're experienced in high-volume production."

Hughes' recent government satellite projects include the UHF Follow-On series of 10 spacecraft for the U.S. Navy, featuring multiple payloads for a variety of communications missions, and data processing payloads and crosslinks for the U.S. Air Force's Milstar satellites. It also is developing state-of-the-art processing payloads and integrated turnkey space-and-ground systems for commercial mobile communications applications.

Hughes is the world's leading manufacturer of commercial communications satellites, having built about a third of those in operation. 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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