Hughes Training's NASA Contract Extended.

ARLINGTON, Texas--(BUSINESS WIRE)--Sept. 4, 1997--Hughes Training Inc. Thursday announced that it has restructured its training systems contract with NASA's Johnson Space Center in Houston.

The restructuring converts Hughes Training's level of effort contract with NASA to a completion form contract which comprises simulator deliveries and support operations. The restructured agreement, which establishes a contract value of $555 million overall, calls for Hughes Training to support NASA through April 2002. Contractual options, if exercised by NASA, could extend the agreement through February 2004.

Since initial award of its training systems contract from NASA in 1989, Hughes Training has been responsible for development, delivery, maintenance and operation of the Space Station Training Facility at Johnson Space Center.

The Space Station Training Facility has been developed and made operational in an incremental fashion to maintain concurrency with the development of the International Space Station. The International Space Station will create a permanent orbiting science institute in space for NASA and its international partners that is virtually free from gravity and which will support long duration research in medical, scientific and technical fields.

The Space Station Training Facility will be used to prepare the astronaut crew to assemble and activate the first two segments of the International Space Station in July 1998. In addition to the astronaut crew, NASA trainers, mission planners and flight controllers will train within the Space Station Training Facility.

Within this training environment, which includes both shuttle and space station simulators, astronauts and ground control personnel will develop the skills they need to effectively operate, manage and control the space station for manned or unmanned operations. Today, Hughes Training is continuing the development of simulations for later space station assembly missions, which are scheduled to last until 2002.

Under the training systems contract, Hughes Training also is working with the Russian Space Agency toward development of International Space Station training facilities in Star City, just outside of Moscow. Hughes Training will provide three trainers to the Russian Space Agency that will serve as the American space station segment training capability within Russia's space station training complex. From December 1997 through January 1999, the trainers are scheduled to be delivered to the Russian Space Agency.

Also as part of the training systems contract, Hughes Training is working with NASA and the National Space Development Agency of Japan. Hughes Training will provide Japan with the American segment trainer that will support Japanese segment systems and payload procedures training. Deliveries of the system trainer's components are scheduled to last from November 1999 to August 2000.

Hughes Training has been NASA's prime training systems contractor dating back to the pioneering Gemini flights of the early 1960s. Since then, Hughes Training has been responsible for providing training devices used to hone the skills of astronauts and flight control personnel on the Apollo, Skylab, Space Shuttle, Spacelab and Space Station programs.

Hughes Training is a unit of Hughes Aircraft Co., which is a unit of Hughes Electronics Corp. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.

CONTACT: Hughes Aircraft

Rick Oyler, 817/619-3536

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