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FOR IMMEDIATE RELEASE

HUGHES REPORTS FIRST QUARTER 1999 RESULTS

Record DIRECTV Subscriber Growth Fuels Revenues

EL SEGUNDO,  CA - April 14, 1999 -  Hughes Electronics Corporation reported today that its financial results for the first quarter of 1999 reflected continued record subscriber growth in its DIRECTV® businesses.

"Our leadership in the direct-to-home market is a key growth and value driver for Hughes," said Michael T. Smith, Hughes chairman and chief executive officer. "Our revenue growth was driven by continued record DIRECTV subscriber growth--for both the United States and Latin America--and we've turned the corner with positive EBITDA(1) for domestic DIRECTV."

Revenues for the quarter were $1,451.8 million, compared with $1,291.0 million in the first quarter of 1998, a 12.5% increase.

EBITDA(1), excluding a 1999 one-time item, was $178.2 million versus $181.3 million for the same period in 1998. EBITDA margin on the same basis was 12.3% for the first quarter of 1999 compared to 14.0% in the first quarter of 1998. The one-time item was a $92.0 million pre-tax charge resulting from the termination of the Asia Pacific Mobile Telecommunications (APMT) satellite system contract due to export licenses not being issued.

"DIRECTV, PanAmSat, Hughes Space and Communications, and Hughes Network Systems all attained EBITDA growth in the quarter," Smith said. This EBITDA growth in the business segments was more than offset by increased investment in the Spaceway™ high-speed broadband operations for North America, and increased intercompany business resulting in higher corporate eliminations. As a result, consolidated EBITDA and EBITDA margin declined.

Earnings(2) were $78.3 million ($0.20 earnings per share, or EPS) in the first quarter of 1999 versus $44.5 million ($0.11 EPS) in the same period last year. First quarter earnings, excluding one-time items, were $40.1 million in 1999 compared to $53.7 million in the same period for 1998, resulting in EPS of $0.10 and $0.13 for first quarter 1999 and 1998, respectively. The declines in earnings and EPS (excluding one-time items) were primarily due to lower interest income and higher depreciation and amortization expenses.

One-time items in the first quarter of 1999 were a $94.3 million after-tax ($154.6 million pre-tax) gain related to the settlement of the Williams patent infringement case3 and a $56.1 million after-tax ($92.0 million pre-tax) charge related to the APMT contract termination. The one-time item in the first quarter of 1998 was a $9.2 million after-tax charge for the cumulative effect of an accounting change mandated by the American Institute of Certified Public Accountants for the write-off of previously capitalized start-up costs.

SEGMENT FINANCIAL REVIEW

Direct-To-Home Broadcast

First quarter revenues increased 43.5% to $556.6 million from $387.9 million in the first quarter of 1998. The increase resulted from continued strong subscriber growth, as well as strong average monthly revenue per subscriber in the United States. The domestic DIRECTV business achieved quarterly revenues of $474 million, a 34% increase over last year's first quarter revenues of $353 million. DIRECTV had its best-ever first quarter with 304,000 net new subscribers in the United States, which compared to 227,000 in the first quarter of 1998. Total domestic DIRECTV subscribers were 4,762,000 as of March 31, 1999.

The DIRECTV business in Latin America also enjoyed its best first quarter ever as it nearly doubled revenues, reaching $61 million compared with $31 million in the first quarter of 1998. With 70,000 net new subscribers added in the first quarter of 1999, an 84% increase over the 38,000 acquired in the same period last year, total DIRECTV subscribers in Latin America climbed to 554,000 as of March 31, 1999. In addition, DIRECTV Japan™, which is 42% owned by Hughes, added 29,000 subscribers in the quarter for a total of 260,000 subscribers at the end of the first quarter of 1999.

The segment's EBITDA in the first quarter was $3.9 million compared with a negative EBITDA of $9.1 million in the first quarter of 1998. Domestic DIRECTV's EBITDA rose to $25 million in the quarter compared to $8 million last year as strong revenue growth outpaced increased marketing and advertising expenses. This gain was partially offset by a larger negative EBITDA in the quarter ($20 million in 1999 versus $13 million in 1998) in Latin America, which was primarily due to the increased cost of the new higher-capacity Galaxy VIII-i satellite and increased advertising expenditures.

Satellite Services

First quarter 1999 revenues were $193.5 million compared with $193.0 million in the prior year's period. Increased operating lease revenue, resulting primarily from growth in data and Internet-related service agreements, was mostly offset by lower transponder sales and sales-type lease revenue.

EBITDA in the quarter was $145.9 million compared with $140.2 million last year. EBITDA margin increased to 75.4% versus 72.6% in last year's first quarter. The increases in EBITDA and EBITDA margin were principally due to lower satellite leaseback expenses resulting from the exercise of certain early buy-out options under sale-leaseback agreements during the first quarter of 1999.

Satellite Systems

For the first quarter of 1999, revenues increased to $630.3 million from revenues of $624.3 million for the same period in 1998. Increased sales to commercial customers including Thuraya Satellite Telecommunications, ICO Global Communications and PanAmSat were largely offset by lower sales on government contracts such as UHF Follow-on and Tracking and Data Relay Satellites (TDRS).

Excluding Hughes Space and Communications' 1999 first quarter pre-tax charge of $81.0 million related to the termination of the APMT contract, EBITDA increased 21.0% to $79.6 million from $65.8 million in the first quarter of 1998. The increase included earnings adjustments in the current quarter on several commercial satellite contracts. As a result, EBITDA margin (excluding the one-time item) was 12.6% for the first quarter of 1999 compared to 10.5% in 1998.

Network Systems

First quarter revenues at Hughes Network Systems (HNS) rose 25.0% to $230.9 million versus $184.7 million in the same period last year. This increase was primarily due to higher sales of DIRECTV® receiver equipment and satellite-based mobile telephone systems.

As a result of this revenue growth, EBITDA, excluding a pre-tax charge of $11.0 million resulting from the termination of the APMT contract for which HNS was providing ground network equipment and handsets, grew to $5.1 million in the quarter, compared to a negative EBITDA of $3.4 million in the first quarter of 1998. EBITDA margin on the same basis was 2.2% compared to a negative EBITDA margin in the first quarter of 1998.

BALANCE SHEET

The cash balance declined $562.1 million in the quarter to $780.0 million as of March 31, 1999, primarily due to working capital requirements, purchase of the Tempo ground-spare satellite, and early buy-out of PanAmSat's sale-leaseback agreements, which were partially offset by proceeds from the settlement of the Williams patent infringement case. Long-term debt increased $77.9 million to $856.6 million principally from an increase in PanAmSat's commercial paper program to fund its satellite fleet expansion and early sale-leaseback buy-out options.

Hughes Electronics Corporation is a unit of General Motors Corp. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to General Motors Class H common stock (NYSE ticker symbol: GMH).

(1) Hughes' definition of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of operating profit (loss) and depreciation and amortization.

(2) Excludes the effects of purchase accounting adjustments related to General Motors' acquisition of Hughes in 1985.

(3) Hughes was awarded a final judgement stemming from its long-running Williams patent infringement case, which was originally filed by Hughes in 1973. The award resulted from the repeated infringement by the U.S. Government over a span of two decades of a patent that revolutionized communications satellite attitude control and made the geosynchronous satellite practical. A payment was received in the first quarter of 1999 of $154.6 million and was recorded in "Other, net."