HUGHES SPACE AND COMMUNICATIONS COMPANY Public Relations Department P.O. Box 92919 (S10/S323) Los Angeles, CA 90009 Media Relations (310) 364-6363 Investor Relations (310) 662-9688 www.hughespace.com

The $700,000 contract was awarded this month by the U.S. Navy's Space and Naval Warfare Systems Command, for six months of work on the Advanced Narrowband System/Mobile User Objective System (MUOS) studies. The HSC team will explore alternatives for a system that will replace the current Navy Fleet Satellite Communications (FltSatCom) satellites and Ultra High Frequency Follow-On (UFO) communications satellite constellation over the next two decades. Advances would include higher-rate data transmission, paging and mobile handheld voice communications, using new government-owned satellites, ground and user equipment (the MUOS segment) and commercially available mobile communications services.

The study contract could lead to a multi-year, multi-billion-dollar production contract for the MUOS system starting in 2003.

The UFO system currently provides narrowband tactical satellite communications to Defense Department warfighters. The first satellite was launched in 1993. The constellation will begin to reach the end of its operating life early in the next century.

HSC team members include Boeing Information and Communications Systems (I&CS) of Anaheim, Calif., which will provide expertise in ground and user terminals; and Science Applications International Corporation, (SAIC), San Diego, which will provide systems engineering and network architecture support.

"As the supplier of the Navy's two most recent UFO satcom systems, HSC is gratified to be able to expand on that experience with this study for the Advanced Narrowband Concept," said Tig H. Krekel, HSC President and CEO. "We selected Boeing, SAIC and the other members of our team to cover all the bases, because they're familiar with the customer and the system requirements. We believe our team offers the Navy the best available technology from the commercial world as well as options for DOD-dedicated equipment."

HSC built the LEASAT satellite system, which the Navy recently retired in favor of the UFO satellites. The first of those went into service in 1993, and HSC is scheduled to launch the 10th in the series Sunday (Nov. 21) from Cape Canaveral, Fla. The Navy ordered an 11th UFO satellite from Hughes last week.

HSC is the world's leading manufacturer of commercial communications satellites, having built nearly 40 percent of those in operation. It also provides the U.S. government a variety of satellite communications services, including protected EHF payloads on Milstar and other platforms, wideband global broadcast communications on UFO, and space relay communications on TDRS and other programs. HSC also builds weather satellites for the United States and Japan.

HSC is a unit of Hughes Electronics Corporation. Hughes Electronics is the world's leading provider of digital television entertainment, and satellite and wireless systems and services. The earnings of Hughes Electronics, a unit of General Motors Corporation, are used to calculate the earnings per share attributable to the General Motors Class H common stock (NYSE:GMH).

Boeing I&CS, a business segment of the Boeing Space & Communications Group, is responsible for some of The Boeing Company's most highly specialized commercial and military space- and ground-based information services. Headquartered in Anaheim and overseeing units elsewhere in California, Seattle, Texas and Australia, I&CS applies new technologies, sophisticated systems engineering, software development, systems integration techniques and innovative business systems to meet its customers' most challenging information requirements.

SAIC is the nation's largest employee-owned research and engineering company, providing information technology and systems integration products and services to government and commercial customers. SAIC scientists and engineers work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment, and financial services. With annual revenues of $4.7 billion, SAIC and its subsidiaries, including Telcordia Technologies (formerly Bellcore), have more than 38,000 employees at offices in more than 150 cities worldwide.