Hughes to continue development of satellite-based NAV service.

LOS ANGELES--(BUSINESS WIRE)--April 12, 1996--Officials at Hughes Telecommunications and Space Co. (HTS) Friday announced that the company will continue to pursue development of a WAAS/EGNOS-compatible civil satellite-based augmentation to GPS which would take advantage of the unique opportunity afforded by the ICO satellites for carrying a navigation payload.

Hughes said this effort is proceeding in spite of the recent Inmarsat Council decision not to invest in the proposed International Satellite Navigation System (ISNS).

"We expect ICO to be open to inclusion of the navigation payload in the current generation of ICO satellites if we can form a strong strategic alliance for the development and utilization of the navigation payload in a timely manner," HTS President Steve Dorfman said.

"Hughes believes in the potential of satellite-based air traffic control and will continue to work with potential partners, building on the initial Inmarsat-convened multi-party work performed on ISNS system architecture, service categories and ground infrastructure," Dorfman elaborated.

"Such a system would be in consonance with the recently announced U.S. government GPS policy. Hughes will continue to work with ICO and other potential investors to realize the available opportunity," Dorfman stated.

Hughes' ICO program manager, Jerry Dutcher, said Hughes must now generate a favorable business plan and develop an implementation plan that does not delay the primary ICO spacecraft schedule. "These are issues we are currently working," Dutcher said. "We expect to complete the current planning phase this summer."

HTS is a unit of Hughes Electronics Corp. of Los Angeles. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE) common stock.

CONTACT: Hughes Space and Communications Co., Los Angeles

310/364-6363