American Mobile Radio Corporation Boosts Satellite Audio Channel Capacity; Up to 100 Channels Available with Hughes "Max Power" Satellites.

WASHINGTON--(BUSINESS WIRE)--June 17, 1998--American Mobile Radio Corporation (AMRC) confirmed today that it will exercise a $52.9 million option to upgrade its two satellites supplied by Hughes Space and Communications International, Inc. (HSCI), to the "Max Power" HS 702 geostationary satellites, potentially doubling the capacity of its system. AMRC is building a nationwide direct audio broadcast system to be launched in the year 2000.

AMRC's satellite digital audio radio service (SDARS) is a revolutionary new radio format that will transmit signals directly to radio receivers in cars and homes. Consumers will be able to experience a new generation of radio programming that will provide coast-to-coast uninterrupted sound quality with an enormous diversity of channels, far exceeding the best traditional radio offers today.

"We are thrilled with the opportunities and capabilities of the Max Power satellites. For a relatively small investment, they will give us a flexible and cost effective way to meet consumer needs," said Hugh Panero, President and CEO of AMRC. "We are currently determining what the appropriate mix of programming will be, but with the additional capacity provided by the Max Power satellites we will now have 100 channel capacity."

"The Max Power satellite is the most powerful commercial satellite available today," said Pete Lauenstein, AMRC Program Manager for Hughes. "It is the new standard for robust communications networks. This move dramatically strengthens AMRC's ability to better serve the marketplace."

Panero is AMRC's newly appointed President & CEO. He previously served as President and CEO of Request TV, a national pay-per-view network owned by Liberty Media and Twentieth Century Fox. Previously, Mr. Panero spent ten years with Time Warner Cable where he was part of the team that built the cable systems serving parts of Queens and Brooklyn, New York.

Hughes Space and Communications is headquartered in El Segundo, California. For over 35 years, Hughes has engaged in the development and production of state-of-the-art space and communications systems, offering a range of satellite sizes to suit varied power and capacity needs.

Headquartered in Washington, DC, AMRC was founded in 1992 to provide a multi-channel, nationwide audio service with high-quality digital sound and an unprecedented variety of programming. AMRC was granted a satellite DARS (digital audio radio service) license by the Federal Communications Commission in October 1997. In March 1998, AMRC awarded a contract to Hughes Space and Communications International to build two HS 702 geostationary satellites, with payloads to be provided by Alcatel Espace. AMRC plans to launch its first satellite in late 1999 and to begin transmitting throughout the United States in the year 2000.

CONTACT: Melissa Andrews

Fleishman-Hillard, Inc.

202-828-9767