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FOR IMMEDIATE RELEASE

RECORD DIRECTV GROWTH HIGHLIGHTS SECOND QUARTER HUGHES RESULTS

EL SEGUNDO,  CA - July 19, 1999 -  Hughes Electronics Corporation (Hughes), the world's leading provider of digital television entertainment, and satellite and wireless systems and services, today reported second quarter 1999 revenues increased 29.7% to $1,776.0 million, compared with $1,369.0 million in the second quarter of 1998.

"Our revenue growth reflects our transformation into a high-growth, subscriber-driven, services company," said Michael T. Smith, Hughes chairman and chief executive officer. "As a result of our merger with United States Satellite Broadcasting Company, Inc., the purchase of the PRIMESTAR medium-power satellite business and the Tempo high-power satellite assets, plus our alliance with America Online, Inc., we took major strides toward achieving our vision of being the premier provider of integrated entertainment and information services. With more than 60% growth over last year, we had our best second quarter ever for new DIRECTV® subscribers in the United States, and our best quarter ever for sales of DIRECTV receiving equipment manufactured by Hughes Network Systems. We also saw growth at PanAmSat due to increased revenues from operating leases."

EBITDA(1) for the second quarter of 1999 was $63.2 million and EBITDA margin(1) was 3.6%, compared to EBITDA of $178.4 million and EBITDA margin of 13.0% in the second quarter of 1998.

The decline in EBITDA was principally due to the previously announced increased development costs and schedule delays experienced by Hughes Space and Communications Company (HSC), which resulted in a second quarter 1999 pre-tax charge (after intercompany eliminations) of $125.0 million. This decline was partially offset by improved EBITDA at Hughes Network Systems (HNS) and PanAmSat.

"Although our company's overall EBITDA declined principally due to the increased costs incurred by HSC," Smith added, "we again had positive EBITDA in our DIRECTV U.S. business and expect it to achieve significant EBITDA growth going forward."

Hughes had a second quarter 1999 loss(2) of $92.3 million, compared to earnings(2) of $56.1 million in the same period for 1998. This resulted in a loss per share, including the effect of preferred stock dividends, of $0.23 in the second quarter of 1999 versus earnings per share (EPS) of $0.14 in the second quarter of 1998. The change in earnings and EPS was primarily attributable to the decline in EBITDA (described above), higher depreciation and amortization expenses related principally to the United States Satellite Broadcasting Company, Inc. (USSB) and PRIMESTAR transactions and increased PanAmSat satellite expenditures, and an increase in net interest expense.

SIX-MONTH FINANCIAL REVIEW

For the first half of 1999, revenues increased 21.3% to $3,227.8 million, compared to $2,660.0 million in the first half of 1998. This growth was primarily the result of record subscriber growth in the company's DIRECTV U.S. business, as well as additional revenues resulting from the USSB and PRIMESTAR transactions. HNS also contributed to the revenue growth through its record sales of DIRECTV receiving equipment.

EBITDA for the first six months of 1999 was $149.4 million and EBITDA margin was 4.6%, compared to EBITDA of $359.7 million and EBITDA margin of 13.5% in the same period of 1998. The declines were principally due to the aforementioned $125.0 million pre-tax charge related to the Company's satellite manufacturing unit, and a first quarter 1999 pre-tax charge of $92.0 million resulting from the termination of the Asia-Pacific Mobile Telecommunications (APMT) satellite system contract due to export licenses not being issued. These declines were partially offset by EBITDA improvements by the Company's DIRECTV businesses, HNS and PanAmSat.

In the first half of 1999, Hughes incurred a loss of $14.0 million and a loss per share, including the effect of preferred stock dividends, of $0.04, compared to earnings of $100.6 million and EPS of $0.25 for the same period in 1998. The decline was principally due to the reduced EBITDA, higher depreciation and amortization expenses related principally to the USSB and PRIMESTAR transactions and increased PanAmSat satellite expenditures, and an increase in net interest expense. These declines were partially offset by an after-tax gain of $94.3 million ($154.6 million pre-tax) related to the settlement of the Williams patent infringement case(3).

SEGMENT FINANCIAL REVIEW: SECOND QUARTER 1999

Direct-To-Home Broadcast

Second quarter revenues for the segment more than doubled to $870.2 million from $401.5 million in the second quarter of 1998. The segment had negative EBITDA of $6.8 million compared with negative EBITDA of $16.7 million in the second quarter of 1998.

United States: DIRECTV reported quarterly revenues of $778 million, more than twice last year's second quarter revenues of $368 million. The increase was due to strong subscriber growth and higher monthly revenue per subscriber, as well as additional revenues resulting from the USSB and PRIMESTAR transactions.

DIRECTV added 369,000 net new subscribers in the quarter, excluding subscribers added through the USSB and PRIMESTAR transactions. This compared to 227,000 net new subscribers in the second quarter of 1998, or a 63% increase on the same basis. As of June 30, 1999, DIRECTV had approximately 7.4 million subscribers. The principal second quarter changes in net subscribers are shown below:

EBITDA for the second quarter of 1999 was $13 million compared to $12 million in the preceding year's second quarter. This increase was due to EBITDA contributions from the USSB and PRIMESTAR transactions, which were mostly offset by higher marketing and advertising expenses.

Latin America and Japan: Hughes' DIRECTV business in Latin America generated $77 million in revenues for the quarter compared with $32 million in the second quarter of 1998. This increase was due to continued subscriber growth and additional revenues resulting from the consolidation of SurFin Ltd.(4), and Grupo Galaxy Mexicana, S.A. de C.V. (GGM)(4).

The DIRECTV service in Latin America added 47,000 net new subscribers in the second quarter of 1999, compared to 49,000 acquired in the same period last year, bringing total DIRECTV subscribers in Latin America to 601,000 as of June 30, 1999.

In the quarter, the Latin American DIRECTV operations reported negative EBITDA of $13 million compared to negative EBITDA of $26 million for the same period in 1998. This improvement was primarily due to higher revenue growth and EBITDA contributions resulting from the consolidation of SurFin.

In addition, DIRECTV Japan reported a total of 291,200 subscribers at the end of the second quarter of 1999. Hughes' minority share of DIRECTV Japan's losses were $23 million for the quarter, compared with $16 million in the second quarter of 1998. These losses are reported in "Other, net" in the Statement of Income (Loss) and Available Separate Consolidated Net Income (Loss).

Satellite Services

PanAmSat, which is 81% owned by Hughes, reported second quarter 1999 revenues of $200.4 million compared with $191.1 million in the prior year's period. The revenue growth was primarily due to a 2% increase in overall video services revenues, which grew to $142 million. This growth was driven by an increase in operating lease revenue principally from new revenues on the PAS-6B satellite, which were partially offset by lower revenues on the PAS-5 satellite as a result of a reduction in its usable capacity. In addition, telecommunications services revenue grew 19% to $47 million during the quarter, primarily due to the growth in data and Internet-related service agreements.

EBITDA for the quarter was $151.0 million, a 13.4% increase over second quarter 1998 EBITDA of $133.1 million. EBITDA margin in the second quarter of 1999 was 75.3%, compared to 69.6% in the same period of 1998. The increases in EBITDA and EBITDA margin were principally due to lower leaseback expense resulting from the exercise of certain early buy-out opportunities under sale-leaseback agreements and a provision for loss recorded during the second quarter of 1998 related to the Galaxy IV satellite in-orbit failures.

Satellite Systems

Second quarter 1999 revenues declined to $553.8 million from $674.8 million for the same period in 1998. This variance was principally due to contract revenue adjustments and delayed revenue recognition related to the previously announced increased costs and schedule delays on several new product lines at HSC.

The segment reported negative EBITDA of $119.6 million, compared to EBITDA of $71.5 million in the second quarter of 1998. This variance was due to a second quarter 1999 pre-tax charge, before intercompany eliminations, of $178.0 million related to the previously announced increased costs and schedule delays.

Network Systems

Second quarter 1999 revenues grew 53.9% at HNS, reaching $341.1 million versus $221.7 million in the same period last year. This was primarily due to increased sales of DIRECTV receiving equipment.

HNS achieved EBITDA of $25.0 million in the quarter, compared to a negative EBITDA of $15.3 million in the second quarter of 1998. EBITDA margin in the second quarter of 1999 was 7.3%. The 1999 increase in EBITDA and EBITDA margin is primarily attributable to a second quarter 1998 provision of $26 million associated with the bankruptcy filing by a customer.

BALANCE SHEET

From December 31, 1998 to June 30, 1999, the Company's consolidated cash balance declined $483.4 million to $858.7 million and long-term debt increased $460.9 million to $1,239.6 million. The principal cash requirements for the first six months were for the acquisition of PRIMESTAR's medium-power satellite business, purchase of the Tempo high-power satellite assets, early buy-out of certain PanAmSat satellite sale-leaseback agreements and working capital requirements.

These requirements were partially offset by a $1.5 billion investment by America Online, Inc. (AOL) and the proceeds from the settlement of the Williams patent infringement case.(3) On June 21, 1999, Hughes and AOL announced a strategic alliance to develop and market uniquely integrated digital entertainment and Internet services nationwide. The alliance is expected to accelerate subscriber growth and revenue per subscriber for DIRECTV and the DirecPC® satellite-based broadband Internet delivery system. Under the agreement, AOL made a $1.5 billion investment in a General Motors Corp. (GM) preferred equity security, which carries a 6.25% coupon rate, that is automatically convertible to GM Class H common stock at a 24% premium in three years.

Also in the second quarter of 1999, approximately 4.9 million new shares of GM Class H common stock were issued in conjunction with Hughes' acquisition of the PRIMESTAR medium-power satellite business. In July 1999, an additional 22.6 million new shares of GM Class H common stock were issued in connection with Hughes' merger with USSB. For purposes of calculating EPS, the additional 4.9 million shares were considered outstanding as of April 27, 1999, the 22.6 million shares were considered outstanding as of May 20, 1999 and the GM Class H dividend base was adjusted accordingly.

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

NOTE: Hughes Electronics Corporation believes that certain statements in this press release may constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimate," "plan," "project," "anticipate," "expect," "intend," "outlook," "believe," and other similar expressions are intended to identify forward-looking statements and information. Actual results of Hughes may differ materially from anticipated results as a result of certain risks and uncertainties, which include but are not limited to those associated with: (1) the failure to maintain leading technologies, (2) satellite failures, (3) manufacturing delays, (4) product demand and market acceptance, (5) ability to achieve cost reductions and successfully integrate acquired businesses, (6) regulatory approvals (including the failure to obtain export licenses), (7) pending litigation (including a pending grand jury investigation regarding export control laws) and (8) Year 2000 compliance. Hughes cautions that these important factors are not exclusive.

(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of operating profit (loss) and depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenues.

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

(3) Hughes was awarded a final judgement arising 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 of $154.6 million was received in the first quarter of 1999 and was recorded in "Other, net."

(4) SurFin Ltd., provides financing for DIRECTV receiving equipment in Latin America. Grupo Galaxy Mexicana, S.A. de C.V. (GGM) is the local operating company providing DIRECTV service in Mexico. As a result of transactions that were completed in November 1998 (SurFin) and February 1999 (GGM), Hughes owns a majority position in each company.