U.S. Military to Beta Test Hughes Network Systems Spaceway Service As Part of Boeing Satellite Systems WGS Contract Award

Hughes Network Systems (HNS), the
world’s leading provider of Broadband Everywhere(TM) services for consumers
and enterprises, today confirmed that its Spaceway broadband satellite service
will be utilized by the U.S. Government during beta testing as part of the
Wideband Gapfiller Satellite (WGS) contract recently awarded to Boeing
Satellite Systems, Inc. (BSS).

BSS will lead its team to design and manufacture the Wideband Gapfiller
Satellite (WGS) system that is readily integrated within the existing
MILSATCOM infrastructure, is easily operated by military personnel, and is
responsive to their needs across the broad spectrum of operations in peace
time and conflict situations. WGS is an effective, interoperable complement to
augment the existing Defense Satellite Communication System (DSCS) and Global
Broadcast Service (GBS).

By participating in the Hughes Spaceway beta test program, the U.S.
Government including selected continental U.S. military forces will have the
ability to test the performance of the unique broadband communications system
for a variety of innovative applications.

Spaceway is a high-speed, high-bandwidth communications system scheduled
for North American launch in 2002 and service in 2003. This next-generation
broadband technology system will provide bandwidth-on-demand capability by
employing satellites with innovative on-board digital processors, packet
switching and spot beam technology. Boeing Satellite Systems is building the
Spaceway satellites for North America under contract from HNS.

Ed Fitzpatrick, vice president of business development and strategic
planning for Spaceway, said, “We are pleased and excited to be a part of the
contract awarded to Boeing and to participate in the Wideband Gapfiller
Satellite Program. Providing broadband communications services to the U.S.
Government as part of Spaceway’s beta test program will create an opportunity
to demonstrate the unique capabilities and features we are building into the
Spaceway system. This will allow the Government to evaluate the military
utility of a system such as Spaceway.”

Lieutenant Colonel Brian Magazu, US Air Force WGS Program Manager, said,
“The USAF looks forward to evaluating the Spaceway broadband commercial
communication system during the beta test. It will be an important step in
investigating the seamless use of commercial communication networks such as
Spaceway to support military communication needs.”

The initial Spaceway North America constellation will include two Boeing
702 satellites and one in-orbit spare, all built by BSS. The Spaceway system
represents the next generation in satellite communications technology,
transmitting and receiving up to 100 times faster than conventional telephone
lines. The spacecraft’s spot beam technology will enable each satellite to
provide local coverage for a designated area. Spaceway also incorporates
complete digital electronics that can interface with a wide variety of end-
user equipment such as telephone, facsimile, personal computer and video.

About Hughes Network Systems

A leading global provider of broadband communications, HNS has delivered
communications solutions to enterprises for nearly 30 years. HNS provides
products and services that support a growing suite of broadband applications
in over 85 countries worldwide.
Headquartered in Germantown, Maryland, near
Washington, DC, the company has sales and support offices around the globe.
HNS is a unit of Hughes Electronics Corporation, the world’s leading provider
of digital television entertainment, satellite services and satellite-based
private business networks. 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 . For
additional information, visit the HNS Web site at http://www.hns.com .

Spaceway and Broadband Everywhere are registered trademarks of Hughes
Electronics Corporation.