APMT Terminates Hughes Geomobile Communications Satellite Contract.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--April 14, 1999--

Asia-Pacific Mobile Telecommunications Pty. Ltd. of Singapore has terminated its contract with Hughes Space and Communications Co. to build a $450 million satellite-based mobile telephone system to serve Southeast Asia.

Hughes was unable to secure the necessary U.S. export licenses for the program in a timely manner.

The contract, which was finalized in May 1998, called for Hughes to design and build a turnkey system that included one geosynchronous mobile communications satellite, one spare satellite, five gateways or switching centers, one network operations center, one satellite operations center, and an initial purchase of 70,000 user terminals. Hughes was to make the first satellite available for launch in 2000. APMT had made launch arrangements separately.

"We regret that this action had to be taken, but we understand the position of our customer," said Michael T. Smith, chairman and chief executive officer of Hughes Electronics Corp., the parent company of Hughes Space and Communications.

"We also have a fiduciary responsibility to our shareholders. We do, however, hope that we can build a satellite-based mobile telephone system to serve Southeast Asia. We continue to have discussions with APMT and the State Department regarding alternatives that would be approved and licensed by the U.S. government."

Hughes Space and Communications Co., a unit of Hughes Electronics Corp., is the world's leading manufacturer of geostationary commercial communications satellites, and is also a major supplier of spacecraft systems and equipment to the United States government. The company also builds weather satellites. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.