Hughes Space and Communications Co. has received an authorization to proceed notice from Asia Satellite Telecommunications Co. Ltd. (AsiaSat) to build a backup satellite for AsiaSat 3S, currently scheduled for launch in the first quarter of 1999.

Negotiations for the final contract will be completed in early

1999. This will be the fourth Hughes-built satellite for AsiaSat.

Launch vehicle arrangements will be made by AsiaSat.

Under the terms of the agreement, if the AsiaSat 3S should suffer

a launch failure, Hughes would deliver a backup satellite, designated

AsiaSat 3SB, to AsiaSat for launch before the end of 1999. If the

launch of AsiaSat 3S is successful, the order would be altered for a

future AsiaSat satellite.

AsiaSat 3SB is essentially the same as AsiaSat 3S, a high-power

HS 601 spacecraft with 44 active transponders, 28 in C-band and 16 in

Ku-band. The 9,900-watt satellite will provide television distribution

and telecommunications services throughout Asia, the Middle East,

Australasia and the Commonwealth of Independent States. AsiaSat 3SB

will have the same 15-year design life as AsiaSat 3S and, if built and

launched, will be positioned at 105.5 degrees East longitude.