Satellite Manufacturing and Satellite Operations Now Provided by Boeing

Hughes Network Systems (HNS)
today announced that it has entered into an agreement with Boeing Satellite
Systems (BSS) for the operation and control of its Spaceway(TM) satellites.
This long-term operating agreement will provide station keeping to the
Spaceway satellites in orbit from a Boeing Space and Communications Services
Operations Control Center (OCC) in Houston, TX.

Two Spaceway teleport locations will be situated near Denver, Colorado and
near Los Angeles, California. Boeing Space and Communications Services’ role
in the operation of the satellites will be to keep the satellites on station
using a combination of computer automation and manual monitoring via land-
based Spaceway teleports and the Operations Control Center.

The Spaceway Ka-band satellite platform will be used in a unique new
broadband satellite network to provide high-bandwidth and high-speed
communications for broadband and multimedia applications to North America in
2003. The satellites will provide bandwidth-on-demand and will operate
exclusively in the Ka-band spectrum.

“HNS is delighted to have extended its business relationship with Boeing
from satellite manufacturing to include station keeping and control of the
Spaceway satellites. This key agreement is an important milestone in the
implementation of the most exciting broadband satellite system the world has
ever seen, said Mike Cook, vice president and general manager of Spaceway.

“Boeing Satellite Systems is pleased to team with Boeing Space and
Communications Services to meet HNS additional needs for Spaceway,” said
Darrell Huntley, Executive Director, Spaceway programs at Boeing Satellite
Systems. “We’re designing this next-generation broadband satellite system to
provide capacity equivalent to six in-orbit satellites today. In addition, Sea
Launch, another part of the Boeing family, will launch the North American
Spaceway satellites into orbit. So when you add Boeing Space and
Communications Services, it really demonstrates Boeing’s unparalleled ability
to provide end-to-end service to the satellite industry.”

About The Boeing Company & Boeing Satellite Systems

Boeing Space and Communications is the world’s leading manufacturer of
commercial communications satellites, and is also a major provider of space
systems, satellites, and payloads for national defense, science and
environmental applications.
The Boeing Company is the largest aerospace
company in the world and the United States’ leading exporter. It is NASA’s
largest contractor and the largest manufacturer of commercial jetliners and
military aircraft. The company’s capabilities in aerospace also include
rotorcraft, electronic and defense systems, missiles, rocket engines, launch
vehicles, satellites, and advanced information and communication systems. The
company has an extensive global reach with customers in 145 countries.

About Hughes Network Systems

Hughes Network Systems, a unit of Hughes Electronics Corporation, is the
world’s largest provider of broadband satellite network solutions for
businesses and consumers, with over 400,000 systems installed in more than 85
HNS pioneered the development of high-speed satellite Internet
access services, which it markets globally under the DirecPC® and
DIRECWAY(TM) brands, and is a major supplier of mobile satellite networks and
user terminals. For terrestrial access, it offers the comprehensive AIReach®
family of broadband wireless, point-to-multipoint products.
In addition, HNS
is a leading manufacturer of DIRECTV® satellite television receivers, having
shipped its 7 millionth system by mid 2001.
Headquartered in Germantown,
Maryland, USA, HNS maintains sales and support offices worldwide.
earnings of HUGHES, a unit of General Motors Corporation, are used to
calculate the earnings per share attributable to the General Motors Class H
common stock.
To learn more about HNS, please visit .

HUGHES Spaceway(TM) is a registered trademark of Hughes Electronics