DIRECTV Successfully Launches Its Fourth Hughes-Built Satellite, DIRECTV 1-R.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Oct. 9, 1999--

DIRECTV 1-R, the fourth direct-broadcast satellite built for DIRECTV by Hughes Space and Communications Company (HSC), was launched successfully Saturday night, becoming the first commercial satellite to be launched from the ocean-based Sea Launch platform. DIRECTV and HSC are units of Hughes Electronics Corporation (NYSE:GMH).

DIRECTV 1-R will provide the nation's leading digital television service provider with in-orbit redundancy and the additional Ku-band capacity to deliver local broadcast network channels to approximately 50 million homes, or about half of the nation's television households.

"The development and successful launch of DIRECTV 1-R shows the enormous power of teamwork among Hughes companies," said Michael T. Smith, chairman and chief executive officer of Hughes Electronics. "We took advantage of our technological and manufacturing strength to launch the DIRECTV business two years ahead of our competition. Now, with this new high-power HSC satellite in place, DIRECTV is ready to better compete with cable and deliver local broadcast stations into local markets as soon as pending legislation is passed by Congress."

Eddy W. Hartenstein, president of DIRECTV, commended Sea Launch and HSC for the successful launch and said the new capacity will create additional revenue opportunities for DIRECTV.

"Once in operation at 101 degrees West longitude (WL), DIRECTV's main orbital slot, DIRECTV 1-R will strengthen our in-orbit redundancy and enable DIRECTV customers in up to 20 of the nation's key television markets to receive their local broadcast channels as well as the current lineup of digital DIRECTV entertainment and information programming through their existing set-top box and 18-inch antenna," Hartenstein said.

"The ability to provide these new services to our subscribers, with no additional investment in equipment on their part, will further strengthen our leadership position in the multichannel digital television market," Hartenstein added. "DIRECTV today leads the industry in offering the widest selection of programming to consumers nationwide."

DIRECTV 1-R is an HS 601HP model, with 16 high-power Ku-band transponders. It will deliver 30 percent more capacity than DBS-1, an HS 601 spacecraft that currently serves DIRECTV subscribers from 101 degrees WL, but that will move to 110 degrees WL to serve as back-up capacity.

"This was a landmark mission - the 50th launch of an HS 601 satellite, and the fourth successful HSC launch this year," said Tig H. Krekel, president and CEO of HSC. "It provides our customer, DIRECTV, with much-needed extra capacity. And it establishes Sea Launch as a viable launch vehicle, one that we plan to use for at least 13 more satellites."

DIRECTV-1R lifted off aboard the Sea Launch Zenit rocket at 8:28 p.m. PDT Saturday from the middle of the Pacific Ocean. After about 62 minutes, the rocket left the spacecraft in a geosynchronous transfer orbit with a high point of 22,300 miles (36,000 km) above the equator. Controllers at a ground station in South Africa made contact with the satellite at separation and confirmed that all systems are functioning properly.

Over the next 30 days, HSC controllers will maneuver the spacecraft into a circular orbit; deploy the antennas, solar arrays and radiator panels; and test the operational functions, communications payload and propulsion system. DIRECTV expects to begin offering services from DIRECTV 1-R by December of this year.

DIRECTV is the nation's leading provider of digital television entertainment service with more than 7.6 million subscribers, including subscribers to the recently acquired PRIMESTAR medium-power direct broadcast satellite service. DIRECTV is a registered trademark of DIRECTV, Inc.

HSC is the world's leading manufacturer of commercial communications satellites, and a major supplier of spacecraft and equipment to the United States government. HSC is also a builder of weather satellites for the United States and Japan.

The Sea Launch partnership combines the resources of the world's leading aerospace and maritime companies, including Boeing Commercial Space Company, Kent, Wash., (which provides spacecraft integration and the payload fairings); Kvaerner Maritime a.s., of Oslo, Norway (the vessel builder); RSC Energia of Moscow, Russia (which provides the Block-DM upper stage and its integration with the launch vehicle); and KB Yuzhnoye/PO Yuzhmash of Ukraine (which provides the first two stages of the launch vehicle).

The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock. Visit Hughes, DIRECTV and HSC on the World Wide Web at www.hughes.com, www.directv.com and www.hughespace.com, respectively.