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HUGHES TO BUILD 3 NEW SATELLITES FOR PANAMSAT

EL SEGUNDO, Calif., Oct. 12, 1998 -- Hughes Space and Communications Company has been selected to build three communications satellites, with expedited delivery on up to three additional satellites, for PanAmSat Corporation. The three-satellite award brings the total number of new orders at Hughes this year to 14. Financial terms were not disclosed.

Under the terms of the contract, Hughes will deliver three HS 601HP satellites for launch, each containing 48 transponders, 24 in C-band and 24 in Ku-band. Two of the satellites will be designated Galaxy IV-R and Galaxy X-R, and will provide domestic broadcast and telecommunications service. PanAmSat has yet to disclose the name of the third spacecraft. All three are scheduled to launch within the next 15 months. PanAmSat will make launch arrangements separately.

"We are very proud of this contract, because Hughes was selected in a competitive bidding process," said Donald L. Cromer, president of Hughes Space and Communications Company. "These three new satellites will increase the number of Hughes-built satellites in PanAmSat's fleet to 22 total. PanAmSat is the world's leading provider of commercial-based communications services, and we are proud that they have again chosen Hughes to build the satellites that will provide these services."

All satellites will be manufactured at Hughes' Integrated Satellite Factory, which was expanded earlier this year. The factory contains 600,000 square feet of manufacturing space, making it the world's largest satellite factory with the facilities and test equipment required to meet the demands of expedited satellite orders.

Hughes Space and Communications Company, a unit of Hughes Electronics Corporation, is the world's leading manufacturer of geostationary commercial communications satellites, and is also a major supplier of spacecraft and equipment to the United States government, and a builder of weather satellites for the United States and Japan. PanAmSat (NASDAQ: SPOT) is the world's leading commercial provider of global satellite services, offering satellite-based video and telecommunications service to hundreds of customers worldwide.

The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.

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