Telesat Canada has ordered the world's most powerful commercial satellite from Hughes Space and Communications a 15-kilowatt HS 702 model spacecraft called Anik F1. Financial terms were not disclosed.

The satellite will carry 84 active transponders to provide

general telecommunications services for North and South America, from

Telesat's operating slot of 107.3 degrees West longitude. Hughes will

deliver the satellite in the first quarter of 2000.

Anik F1 takes full advantage of the technological advances Hughes

incorporated into its new HS 702 spacecraft. To generate such high

power, the two solar wings employ high-efficiency, dual-junction

gallium arsenide solar cells. The payload consists of 48 Ku-band

transponders and 36 in C-band, a 75 percent increase in capacity over

Hughes' popular HS 601 series.

To provide 15 years of service, Anik F carries Hughes'

flight-proven xenon ion propulsion system (XIPS) for all on-orbit

maneuvering. Construction will be done in the Hughes Space and

Communications Company factory near Los Angeles International Airport.

HSCI also will provide satellite control software for Telesat's

ground stations in Allan Park, Ontario, and Edmonton, Alberta.

“Hughes and Telesat's relationship goes back more than 25 years,

to the first Anik satellites,'' noted HSCI President Michael J.

Houterman. “Canada was the first country to have a domestic satellite

system. In fact, one of my early assignments at Hughes was working on

Anik A, then later on Anik C. So I'm glad Hughes is maintaining its

bond with Telesat through Anik F, providing our customer with the

world's most capable satellite.''

Hughes introduced the HS 702 in 1995, in response to customer

requests for a high-power, high-capacity, multiple-payload satellite

that could be delivered in minimum time and be launched on a variety

of vehicles.

“Anik F1 brings the new orders for Hughes satellites in the first

quarter of 1998 to over $1 billion,'' said Steven D. Dorfman, vice

chairman of Hughes Electronics Corp. “It also brings the orders for

our new HS 702 to six satellites.'' The first HS 702 will be launched

in the fourth quarter of this year.

Anik F1 will be the ninth satellite developed by Hughes for

Telesat, Canada's national satellite communications company, based in

Gloucester, Ontario. “Anik'' means “little brother'' in the Inuit

language.

Hughes built the Anik A series of three HS 333 model satellites,

the first of which was launched Nov. 9, 1972. These carried 12

transponders each in C-band only, and had just 300 watts of power.

They were followed 10 years later by the Anik C and D series, which

were HS 376 models built by Hughes and Spar Aerospace Ltd. of Toronto.

The three Anik C spacecraft each carried 16 transponders in

Ku-band only, and had 900 watts. The two Anik D satellites carried 24

transponders in C-band and generated 1,000 watts.

Hughes, through its Space and Communications Company (HSC), is

the world's leading manufacturer of geostationary commercial

communications satellites, having built nearly 40 percent of those

operating worldwide. It also supplies spacecraft for communications

and space exploration to the U.S. government, and builds weather

satellites for the United States and Japan.

HSCI is HSC's international marketing and contracting subsidiary,

and it holds contracts with launch vehicle providers for delivery of

customers' satellites on-orbit. HSC is a unit of Hughes Electronics.

The earnings of Hughes Electronics are used to calculate the earnings

per share attributable to GMH (NYSE symbol) common stock.