Compaq Offers DirecPC Satellite Internet Service On Presario Internet PCs.

HOUSTON and GERMANTOWN, Md.--(BUSINESS WIRE)--April 14, 1999--

Companies Deliver on "Triple Play" Partnership Strategy by

Providing Consumers Nationwide Ultra-Fast Internet Access

Reaching a major milestone in its "Triple Play" partnership strategy(1), Compaq Computer Corporation (NYSE:CPQ) and Hughes Network Systems (NYSE:GMH) announced the availability of new customized Presario Internet PCs featuring DirecPC(R) high-speed satellite Internet service, significantly accelerating access to the World Wide Web.

Available mid-May, consumers in the U.S. will be able to order a Compaq Presario Internet PC bundled with a DirecPC USB package for as low as $1,899(2). The Presario/DirecPC system will be available through more than 9,000 Compaq "Built for You" in-store kiosks across the country, by calling 1-800-888-0220, or on the Internet at http://www.compaq.com/.

The DirecPC USB package includes a DirecPC Antenna and USB satellite modem, allowing consumers nationwide to surf the Web at up to 400 kilobits per second -- approximately 14 times faster than a traditional telephone modem. In addition, Compaq customers who choose DirecPC will enjoy Turbo Webcast(tm) and Turbo Newscast(tm), the revolutionary Web site and newsgroup offerings from DirecPC.

Customers can either install the equipment themselves, or a professional installer can perform the task for them. Since DirecPC works with Compaq's easy-to-use home phoneline networking technology, multiple users within the home will be able to share the high-speed satellite Internet connection throughout the home using their existing phone lines.

"Compaq, in partnership with Hughes DirecPC, now makes satellite high-speed Internet services widely available to Compaq Presario customers across the 48 states in the continental U.S.," said John Stautner, Director of Internet Services, Compaq Computer Corporation. "This is an important milestone in our 'Triple Play' broadband strategy and Compaq is leading the way to make high-speed Internet services available to consumers throughout the U.S."

"This partnership is a definite 'win-win' for both parties," said DirecPC General Manager Paul Gaske. "It allows us to team up with the largest PC manufacturer in the world to help spread the word about DirecPC, the fastest Internet access available nationwide. And, thanks to this partnership, Compaq can now offer every customer in the continental United States a sub-$2,000 PC capable of surfing the Web up to 14 times faster than a traditional phone modem connection. We think this sends a clear message to Web surfers nationwide: if you've got a real need for speed, the quickest way to turbocharge your Internet access is through Compaq and DirecPC."

DirecPC

DirecPC was launched to the consumer marketplace in 1997 as a high-speed Internet access alternative to ISDN and other terrestrial technologies. Through its interactive Turbo Internet(tm) service, DirecPC offers Internet download speeds up to 400 kbps and remains the fastest, most affordable Internet access available nationwide today. DirecPC also offers numerous IP-based solutions for small- to enterprise-sized businesses, including high-speed delivery of Intranet Web pages; reliable distribution of software or other common files; high-speed, interactive TCP/IP transactions; large point-to-point file transfers; and streaming audio and video.

Compaq Computer Corporation

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com/.

Hughes Network Systems

A world leader in satellite products and network systems for more than 25 years, HNS is the second-largest manufacturer of DIRECTV digital satellite systems and the provider of the award-winning DirecPC satellite Internet service. In addition, HNS has 55 percent of the global VSAT market and has shipped more than 300,000 terminals. Headquartered in Germantown, Md., near Washington, D.C., the company has sales and support offices worldwide. HNS offers communications network solutions that include a complete line of integrated satellite and enterprise networking products encompassing VSATs, frame relay, and fixed and mobile wireless networks. HNS is Hughes Electronics Corporation company and an ISO-9001-certified manufacturer. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.

(1) Compaq announced the "Triple Play" broadband Internet access program, the most comprehensive partnership strategy to bring U.S. consumers the widest choice of ultra-fast Internet access at COMDEX in November 1998. Hughes Network Systems/DirecPC, along with 10 other companies participated in this program to enable consumers to easily sign-on to and take advantage of high-speed Internet access nationwide.

(2) This price is for the DirecPC USB package (with DirectPC data-only antenna) when purchased with a Compaq Presario 5600i system.

Note to Editors: Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.