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INTERNATIONAL MOBILE MACHINES AND HUGHES NETWORK SYSTEMS ENTER INTO NEW BUSINESS RELATIONSHIP

 INTERNATIONAL MOBILE MACHINES AND HUGHES NETWORK SYSTEMS
 ENTER INTO NEW BUSINESS RELATIONSHIP
 KING OF PRUSSIA, Pa., March 2 /PRNewswire/ -- International Mobile Machines Corporation (NASDAQ: IMMC) and Hughes Network Systems (HNS), a subsidiary of Hughes Aircraft Company, a unit of GM Hughes Electronics (NYSE: GMH), today jointly announced a new business relationship.
 The major components of the new relationship are: IMM has granted HNS its second royalty bearing non-exclusive license for its Time Division Multiple Access (TDMA) patents and technology with an up-front royalty payment, and HNS has licensed to IMM its Extended TDMA (E-TDMA) patents on a royalty basis. IMM and HNS have restructured their manufacturing relationship which includes money being paid to HNS. Also, HNS has agreed to exchange debt for additional common stock in IMM and has agreed to immediately convert its currently held preferred stock into common stock. The two companies have a longstanding relationship which is directed toward bringing TDMA wireless products into the worldwide marketplace. The new relationship announced today postures each company to pursue the wireless digital access markets of the future more aggressively.
 In 1989, IMM granted to HNS a royalty bearing license for HNS to enter the AMPS-D cellular marketplace. The new agreement announced today gives HNS the license to enter additional wireless marketplaces besides cellular, and results in additional royalty payments to IMM for its TDMA patents. This second licensing agreement includes both a long- term royalty, and the up-front royalty payment.
 As a part of the new agreement, IMM has been granted a royalty bearing license from HNS for its E-TDMA patents, which have been developed over the past two years to give HNS a major entry position into the worldwide AMPS-D cellular market arena. E-TDMA patents extend the three-call-per-channel AMPS-D U.S. cellular-standard, to a 10-call- per-channel, 15 times capacity system. IMM will have access to this extended technology for use in its products.
 Another major part of this agreement results in the termination of the manufacturing agreement between the two companies. Under the original contracts, HNS provided engineering and manufacturing support for IMM in its early growth stages. Over a period of time, IMM contracted with HNS to develop the base station and subscriber units for the Ultraphone system. Previously, IMM has successfully transitioned the assembly, integration and testing of the base station in-house. During this past year, HNS has assisted IMM in developing relationships with component manufacturers of the subscriber units, thus allowing IMM to transition the total assembly, integration and test of the Ultraphone subscriber units in-house. Termination charges owing to HNS as a result of the restructuring will be paid in cash and IMM common stock. Jack Shaw, chairman of HNS, commenting on the new relationship, said, "IMM has reached a stage in their corporate life where they wish to assume more and more of the responsibilities for the Ultraphone product line. We applaud their success and wish them well for the future."
 "There is no doubt that TDMA will be the leading technology in the wireless digital access markets of the '90s," said William J. Hilsman, chairman and chief executive officer of IMM. "Our new relationship with HNS enables both companies to take primary leadership roles against the largest manufacturers in the world. I anticipate that this latest transition should allow us to significantly improve the gross margins on the Ultraphone subscriber unit."
 /delval/
 -0- 3/2/92
 /CONTACT: Marcia A. Bexley of IMM, 215-278-7831, or Judy Blake, 301-428-7113, or Alison Welles, 301-428-7111, both of HNS/
 (IMMC GMH) CO: International Mobile Machines Corporation; Hughes Network Systems ST: Pennsylvania, Maryland IN: TLS SU: JVN


KA-LJ -- PH029 -- 4069 03/02/92 14:47 EST
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Date:Mar 2, 1992
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