HUGHES GLOBAL SERVICES, INC.
HUGHES SPACE AND COMMUNICATIONS COMPANY
Communications and Customer Relations
P.O. Box 92919 (S10/S323)
Los Angeles, CA 90009
Media Relations (310) 364-6363
Investor Relations (310) 662-9688
www.hughesglobal.com		 HGS Logo


GSA TAPS HUGHES GLOBAL SERVICES TO MEET FEDERAL SATCOM NEEDS

EL SEGUNDO, Calif., Feb. 5, 1999 -- The U.S. government's General Services Administration (GSA) awarded a contract today to Hughes Global Services, Inc., (HGS) for a wide variety of satellite services that can be used by all government agencies. This is the first contract to be awarded under a GSA solicitation for satellite services issued last fall.

The Indefinite Delivery, Indefinite Quantity (IDIQ) contract has a $100 million ceiling over two years if all options are exercised.

The contract offers the government access to all types of commercial fixed, broadcast, and mobile satellite services and associated equipment in all commercial satellite communications frequency bands. The contract also includes the capability to add new commercial services as they enter the marketplace.

"This GSA contract is an ideal vehicle for government satcom users to lower their costs through use of commercially available satellite capabilities," said HGS President Ron Swanson. "We're enabling the government users to get whatever satellite communications they need, when they need it, at the best price."

The satellite services will be available to all civil or military federal agencies and tribal governments. Other organizations have the potential to access the services through a sponsoring federal agency.

To facilitate responsiveness to government customers, HGS will provide e-commerce access on its Internet website, www.hughesglobal.com. The link will describe products and services, allow customers to identify communications needs, provide contact with an HGS employee to answer questions and generate a completed delivery/task order ready for government acceptance. This capability is expected to be operational by mid-February. Until then, orders can be placed by contacting HGS at 1-888-HGS-4203 or at hgs.info@mail.hac.com.

Current satellite product and service offerings under the contract include domestic and international mobile satellite communications; fixed satellite services including long-term and occasional-use bandwidth, terminals and videoteleconferencing at C- and Ku-band frequencies; and the DirecPCTM data delivery capability.

In addition, HGS is including its DemandNetTM and SkyMediaTM products in the contract. DemandNet combines commercial very small aperture terminal (VSAT) technology with a global satellite constellation to provide affordable bandwidth services on-demand. SkyMedia provides cost-effective video delivery, digital data broadcast and high-data-rate Internet access for distance learning and data sharing. HGS is already providing SkyMedia networks for two government agencies through separate contracts.

If the needed solution is not currently described in the contract, HGS will provide a responsive proposal that accesses the total capability of the commercial market. HGS will also provide end-to-end integrated service and network solutions when requested.

This is HGS's first government IDIQ contract since it was established in 1997. HGS was chartered to supply federal, local and state government customers with "one-stop shopping" for commercially available satellite communications products and services.

"HGS will continually evolve the products and services available, both in response to government customers' stated needs and to keep pace with the ever-expanding offerings in the commercial marketplace," Swanson said. "We think the government should have immediate access to new products in the commercial market, and we're here to make that happen."

HGS is a subsidiary of Hughes Space and Communications Company (HSC), the world's leading manufacturer of commercial geosynchronous communications satellites. It also is a major supplier of spacecraft and equipment to the U.S. government, such as military communications satellites, and builder of weather satellites for the United States and Japan.

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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