Hughes to acquire Alliant's Marine Systems Group.

LOS ANGELES--(BUSINESS WIRE)--Dec. 23, 1996--Hughes Electronics Corp. (NYSE:GMH) has agreed to acquire the Marine Systems Group (MSG) of Alliant Techsytsems (NYSE:ATK) for $141 million in cash.

MSG will be part of the Naval and Maritime Systems of Hughes Aircraft Co., a unit of Hughes Electronics. The acquisition is subject to government approval and is expected to be completed in the first quarter of 1997.

Based in Mukilteo, Wash., MSG has approximately 650 employees in six states. The agreement includes the acquisition of the Mukilteo facility and the assumption of leased facilities in California, Maryland, Hawaii, Rhode Island, Texas and Washington. No change in the workforce is anticipated.

"The Marine Systems Group provides a very good fit with the existing product lines of Hughes' naval systems," said John Weaver, executive vice president of Hughes Electronics and president and chief operating officer of Hughes Aircraft.

"Both torpedoes and undersea surveillance are core Hughes technologies, and the addition of Marine Systems will make the Hughes team more competitive, both in the domestic and international markets."

MSG manufactures the Mk 46 and MK 50 lightweight torpedoes, the NT 37 heavyweight torpedo, the Advanced Deployable Underwater Surveillance System, and the SLQ-48 Mine Neutralization System for anti-mine warfare.

Major programs of the Hughes Naval and Maritime Systems Business Unit, which employs about 1,100 people at facilities in Fullerton and San Diego, Calif., and Rhode Island, include the SURTASS ocean surveillance system, the ALFS dipping sonar system, the ADCAP torpedo, the Surface Search Radar, the Advanced Combat Direction System, the Ship Self-Defense System, the UYQ-21 Display System and the LPD-17 Ship System.

"Marine Systems has excellent technical and manufacturing capabilities that only can get better when combined with the capabilities of Hughes," said Richard Schwartz, president and chief executive officer of Alliant.

"The transaction also will result in greater efficiencies and the elimination of redundant costs at a time when federal budgets are under pressure. From a national security standpoint, it will preserve critical technology and manufacturing and test resources, and provide increased international sales synergy to help sustain the country's industrial base."

Alliant Techsystems is a $1.2 billion aerospace and defense company that has approximately 7,600 employees in 24 states. The company has headquarters in Hopkins, Minn., and comprises four business groups: Aerospace Systems, Defense Systems, Marine Systems and Emerging Business.

Company news and information can be found on the Internet at www.ATK.com .

Hughes Electronics is a world leader in the design, manufacture and marketing of advanced electronic systems. With more than 84,000 employees worldwide and 1995 revenues of $14.8 billion, Hughes comprises Delco Electronics Corp., Hughes Aircraft Co., Hughes Telecommunications Co., Hughes Network Systems Inc. and DIRECTV Inc.

The earnings of Hughes Electronics are used to calculate the earnings attributable to GMH common stock. The Hughes Electronics Internet address is http://www.hughes.com .

CONTACT: Hughes Electronics Corp., Los Angeles

Richard Dore, 310/568-6324

or

Alliant Techsystems, Mukilteo

Rod Bitz, 612/931-5413