REPEAT/U.S. Army takes delivery of Ground Based Sensor.

FOREST, Miss.--(BUSINESS WIRE)--July 2, 1996--The U.S. Army Tuesday accepted delivery of the first two production Ground Based Sensor radar systems for its Short Range Air Defense System (SHORADS) from the Hughes Aircraft Co. manufacturing facility in Forest.

The radar system was presented to Maj. Gen. John Costello, commanding general/commandant Air Defense Artillery, by Senior Vice President Luke Bogdanovic, president of Hughes Aircraft Co.'s Radar and Communications Systems segment.

``Today, thanks to a superb military-contractor team effort, the Ground Based Sensor officially joins the inventory,'' Costello said.

``No system is more needed and no system better satisfies the targeting needs of the Army of the 21st century than the GBS. Together with the SHORAD C3I (command, control, communication and intelligence) system, the GBS provides SHORAD and supported commanders with critical air-situation awareness to an extent only dreamed of in the past. The GBS is truly leading the way to Force XXI.''

Rep. Sonny Montgomery, D-Miss., told workers attending the ceremony at the Hughes Aircraft Mississippi plant: ``This is yet another first for you here at HAMI, one of many you have achieved over the past few years, including the EPLRS (Enhanced Position Location Reporting System) radio, Firefinder radars and now GBS.

``You are bringing into service a state-of-the-art radar to protect our troops from a potentially lethal air threat. A job well done.''

Hughes received a contract from the Army in 1992 to produce up to 154 MPQ-64 GBS systems, associated spare parts, deployment supplies and services. If all units are ordered, the contract could be worth more than $400 million.

Prior to the Ground Based Sensor program, the Army did not have an air-surveillance and target-tracking/weapon-assignment radar for use in the forward area. The lack of a sensor has deprived forward units of an air picture (hostile and friendly) or data required for weapon targeting in an electronic countermeasures environment.

Officially known as the AN/MPQ-64, the Ground Based Sensor is the key air-surveillance and target-acquisition/tracking sensor for Division and Corps weapons. The MPQ-64 is an advanced three- dimensional battlefield air-defense radar that uses modern phased-array antenna technology.

The GBS X-band radar automatically detects, tracks, classifies, identifies and reports targets (fixed- and rotary-wing aircraft and cruise missiles and unmanned aerial vehicles). Targets can be hovering to fast-moving, from nap of the earth to the maximum engagement altitude of SHORAD weapons.

The GBS is accurate and quick-reacting, and acquires targets sufficiently beyond the forward line of own troops to reduce SHORAD weapon reaction time and allow engagement at optimum ranges. The radar's integrated identification friend or foe (IFF) capability prevents fratricide of Army Aviation and Air Force aircraft.

Highly mobile and reliable, GBS' anti-radiation missile and electronic countermeasures resistant performance supports Army Corps and Divisional Air Defense across the full spectrum of conflict.

Hughes has also provided the MPQ-64 to international customers through its Advanced Surface-to-Air Missile System (AdSAMS), which uses the radar to cue batteries of ground-launched AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM), as well as to the Turkish Land Force for its SHORADS program.

The success of the GBS Program and delivery of the first system is the result of hard work and dedication of the entire U.S. Army/ Hughes GBS team.

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

CONTACT: Hughes Aircraft Co., El Segundo, Calif.

Kearney Bothwell, 310/334-1665

310/334-1679 (fax)

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