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FOR IMMEDIATE RELEASE

Hughes Reports Third Quarter 2000 Financial REsults

EL SEGUNDO,  CA - October 11, 2000 - Hughes Electronics Corporation, the world's leading provider of digital television entertainment, satellite services and satellite-based private business networks, today reported third quarter 2000 revenues increased 3.7% to $1,688.5 million, compared with $1,627.8 million in the third quarter of 1999. EBITDA(1) for the quarter decreased 46.6% to $107.9 million and EBITDA margin(1) was 6.4%, compared to EBITDA of $202.1 million and EBITDA margin of 12.4% in the third quarter of 1999. Hughes had a third quarter 2000 loss(2) of $88.5 million, compared to a loss(2) of $29.6 million in the same period for 1999.

"Our continued investment in high-growth, high-value businesses is reflected in our reduced earnings this quarter," said Michael T. Smith, Hughes chairman and chief executive officer. "And now that we have completed the sale of our satellite manufacturing businesses to The Boeing Company, we have received more than $3.0 billion in after-tax proceeds which we will use to fuel further growth and pay down debt."

Smith continued, "In the third quarter, some of our most exciting service businesses attained significant milestones. DIRECTV(®) had its best third quarter ever for subscriber growth in both the United States and Latin America. We began shipping the AOL Plus Powered by DirecPCä product; we signed up additional distribution partners, including Juno and Pegasus; and we are on schedule to introduce our two-way via-satellite DirecPCä broadband service by the end of the year. In addition, PanAmSat announced its first customers for NET/36ä , its satellite-based Internet broadcast network for content providers seeking to deliver streaming video, audio and data to broadband customers."

NINE-Month Financial review

For the first three quarters of 2000, revenues increased 35.4% to $5,228.6 million, compared to $3,862.3 million in the same period last year. This growth was primarily the result of record subscriber growth at DIRECTV in the United States and additional revenues resulting from the United States Satellite Broadcasting, Inc. (USSB) and PRIMESTAR, Inc. transactions, as well as higher outright sales and sales-type leases of transponders at PanAmSat.

EBITDA for the first nine months of 2000 was $440.2 million and EBITDA margin was 8.4%, compared to EBITDA of $437.4 million and EBITDA margin of 11.3% in the same period of 1999. The slight increase in EBITDA was primarily attributable to higher outright sales and sales-type leases of transponders at PanAmSat, offset by increased losses in the DIRECTV businesses due to higher marketing costs associated with the record subscriber growth in both the United States and Latin America. The decline in margin resulted from the increased marketing expenses for the DIRECTV services and the lower margins associated with PanAmSat's outright sales and sales-type leases.

For the first nine months of 2000, losses(2) totaled $228.9 million, compared to losses(2) of $43.6 million in 1999. The higher loss was primarily due to increased depreciation and amortization resulting principally from the mid-1999 acquisitions of USSB and PRIMESTAR, and higher net interest expense. Additionally, in the first quarter of 2000, Hughes booked a one-time pre-tax charge of $171 million (reported in "Other, net") related to its agreement with SkyPerfecTV! and the discontinuation of the DIRECTV Japan business. The after-tax impact of this charge was a loss of $13 million, which includes the tax benefits associated with the write-off of Hughes' historical investments in DIRECTV Japan.

Segment Financial Review: Third Quarter 2000

Direct-To-Home Broadcast

Third quarter revenues for the segment increased 12.8% to $1,291.5 million from $1,144.6 million in the third quarter of 1999. The segment had negative EBITDA of $17.7 million compared with EBITDA of $55.1 million in the third quarter of 1999.

United States: DIRECTV reported quarterly revenues of $1,154 million compared with revenues of $1,052 million last year. The increase was due to continued strong subscriber growth, partially offset by the impact of the conclusion of the PRIMESTAR By DIRECTV medium-power service, as described below.

DIRECTV added a record 450,000 net subscribers to its high-power DIRECTV service in the quarter versus 423,000 net subscribers added in the third quarter of 1999, and converted about 300,000 customers from the PRIMESTAR By DIRECTV medium-power service. While gross subscriber additions were up significantly compared to the third quarter of 1999, net subscriber additions were impacted by DIRECTV's first-ever price increase and the conclusion of the PRIMESTAR conversion process.

As of September 30, 2000, DIRECTV had 9.0 million subscribers. Through the first nine months of 2000, DIRECTV grew 37% in its core urban/suburban markets, which exclude those markets in the National Rural Telecommunications Cooperative (NRTC) territories.

EBITDA for the third quarter of 2000 was $36 million compared to EBITDA of $86 million in last year's third quarter. This decline was principally due to higher marketing costs and the impact from the completion of the PRIMESTAR conversion process.

As a result of the PRIMESTAR conversions, DIRECTV no longer receives the revenues from the PRIMESTAR By DIRECTV customers who either discontinued service, or who converted but live in NRTC territories. DIRECTV receives only a small percentage of revenues from customers in these territories, thus reducing the revenues and EBITDA attributable to DIRECTV in the third quarter of 2000. Since its 1999 acquisition of PRIMESTAR, DIRECTV converted a total of approximately 1.5 million customers to its high-power service. DIRECTV shut down the PRIMESTAR By DIRECTV service on September 30, 2000 six months ahead of its original schedule.

Latin America: The DIRECTV businesses in Latin America generated $136 million in revenues for the quarter, up 79% over the $76 million reported in the third quarter of 1999. This increase was due to continued strong subscriber growth.

The DIRECTV service in Latin America added 126,000 net new subscribers in the third quarter of 2000, an 88% increase over the 67,000 acquired in the same period last year. The total number of DIRECTV subscribers in Latin America as of September 30, 2000 was 1,136,000.

The DIRECTV businesses in Latin America had negative EBITDA of $50 million compared to negative EBITDA of $24 million for the same period in 1999. The decline was primarily due to the impact of higher marketing expenses associated with the record subscriber growth.

Japan: DIRECTV Japan's loss was $3 million for the quarter, compared with a loss of $20 million in the third quarter of 1999. DIRECTV Japan ceased broadcasting on September 30, 2000, and is on schedule to complete the migration of customers to SkyPerfecTV! and the closure of the legal entity.

Satellite Services

PanAmSat, which is 81% owned by Hughes, generated third quarter 2000 revenues of $199.3 million compared with $210.7 million in the prior year's period. The 5.4% decrease was driven primarily by a third quarter 1999 one-time customer payment of approximately $15 million associated with the termination of a direct-to-home video services agreement in India.

Third quarter 2000 EBITDA for the segment was $135.5 million compared to $169.0 million in the third quarter 1999, a 19.8% decrease. EBITDA margin in the third quarter of 2000 was 68.0%, compared to 80.2% in the same period of 1999. The decrease in EBITDA and EBITDA margin was primarily due to the one-time customer payment received in the third quarter of 1999; an increase in direct operating costs and selling, general and administrative (SG&A) costs as a result of the company's continued fleet expansion; and investment in the new NET/36 broadband Internet initiative.

As of September 30, 2000, PanAmSat had contracts for satellite services representing future payments (backlog) of approximately $5.8 billion compared to approximately $6.0 billion in the second quarter of 2000. This includes a $350 million reduction in backlog resulting from anomalies on the Galaxy VIII-i satellite. This reduction would be more than offset by additional backlog generated by the Galaxy VIII-iR replacement satellite that will be constructed if PanAmSat's agreement in principal with Galaxy Latin America is finalized.

Network Systems

Hughes Network Systems' (HNS's) third quarter 2000 revenues were $284.0 million, compared to $426.2 million in the third quarter of 1999. The decrease in revenues was principally due to lower sales of DIRECTV receiver equipment associated with the early completion of the transition of PRIMESTAR By DIRECTV subscribers to the high-power DIRECTV service. HNS shipped 470,000 DIRECTV receiver systems in the third quarter of 2000, compared to 730,000 units in the same period last year. The discontinuation of certain narrowband wireless businesses, announced in January 2000, also contributed to the reduced revenues, as did lower revenues in the mobile satellite network product line.

In the quarter, HNS had EBITDA of $16.8 million and EBITDA margin of 5.9%, compared to EBITDA of $49.8 million and 11.7% margin in the third quarter of 1999. The decline in EBITDA and EBITDA margin is attributable to the reduced revenues; increased investment in the upcoming launch of new DirecPC services, including AOL Plus Powered by DirecPC; and the elimination of DIRECTV equipment subsidies from DIRECTV. These reductions were offset by a $21 million one-time EBITDA gain that resulted from successful negotiations with certain narrowband wireless customers for receivables previously written-off.

New orders in the third quarter of 2000 were $423 million, compared to $295 million in the same period last year, driving backlog to approximately $1.3 billion as of September 30, 2000. This increase was primarily due to higher sales of domestic VSAT (very small aperture terminal) private business networks to customers including Exxon/Mobile, CAIS Internet, Musicland and National Cable Communications. In total, these new contracts represent more than 14,000 additional points of presence on HNS-built networks. Mobile satellite network sales also contributed to the increase, and included a $150 million contract for Inmarsat's next-generation ground infrastructure.

BALANCE SHEET

From December 31, 1999 to September 30, 2000, the Company's consolidated cash balance decreased $59.8 million to $178.4 million and total debt increased $949.4 million to $3,090.8 million. The principal cash requirements for the first nine months of 2000 were related to general working capital requirements and capital expenditures for property, plant, equipment and satellites.

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

A live webcast of Hughes' third-quarter 2000 earnings call will be available at the company's website at www.hughes.com or at www.vcall.com. The call will begin at 2:00 p.m. ET, today. Investors are advised to allow 15 minutes prior to the call to register and download any necessary software. Following the completion of the call, the webcast will be archived on the Investor Relations portion of the Hughes website for at least one week.

NOTE: Hughes Electronics Corporation believes that some of the foregoing statements may constitute forward-looking statements. When used in this report, the words "estimate," "plan," "project," "anticipate," "expect," "intend," "outlook," "believe," and other similar expressions are intended to identify such forward-looking statements and information. Important factors that may cause actual results of Hughes to differ materially from the forward-looking statements in this report are set forth in the Form 10-Ks filed with the SEC by GM and Hughes.

(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)Equals reported Net Loss excluding the effects of purchase accounting adjustments related to General Motors' acquisition of Hughes in 1985.