---

Hughes Network to Expand Tire Company's Wide Area Network

11 May 1999

Hughes Network Systems Satellite Technology to Expand Tire Company's Wide Area Network

  Les Schwab Installing Cost-Effective VSATs for Intercompany in 300 stores

    GERMANTOWN, Md., May 10 -- Hughes Network Systems (HNS)
announced today Les Schwab, a retail tire store chain and tire retread
manufacturer, is replacing its terrestrial-based network with HNS' very small
aperture terminal (VSAT) satellite network to enhance its internal
communications and improve inventory controls and customer service.  HNS is
the world's leading provider of VSAT networks.
    Les Schwab purchased the HNS PES(TM) VSATs to create a communications
network that will allow the company to track inventory, access customer
account information, transmit daily price updates to its stores, and transmit
daily sales information from the stores to the headquarters.  The HNS VSAT
system also will enhance the company's AS/400 mainframe computer system,
making it a more reliable tool for store managers.
    "The fact that VSATs will free up dedicated phone lines at our stores,
which would cut our costs, led us to investigate the possibility of
implementing a satellite system," said Todd Crappa, supervisor of AS/400 and
store systems support for Les Schwab.  "After evaluating two VSAT providers,
we chose HNS because of their proven reliability and experience with
AS/400's."
    Weather conditions in the Pacific Northwest, where Les Schwab stores are
located, also led to the decision to install a VSAT network.  "VSATs provide
more reliability than terrestrial systems in Pacific Northwest weather
conditions," said Crappa.
    Improved customer service is another benefit Les Schwab expects to receive
from the HNS VSAT system.  The VSAT network will allow credit cards to be
processed at greater speeds, which will lead to less waiting time for the
customer.  Also expediting customer service, is the fact that it will take
only six to seven seconds to gather information off of the computer system
with the VSAT system.  Previously, it took three to four minutes to gather
information.
    "In a retail setting improving customer service can give a company a
competitive edge, and VSAT technology is a cost effective and reliable way to
enhance customer satisfaction," said Dennis Conti, senior vice president,
Satellite Networks Division of HNS.  "VSATs give employees the quick access to
information that they need to better serve the customer."
    Other benefits include using the HNS VSAT network for real-time shipment
inquiries and file broadcasting of company software updates.  In the future,
Les Schwab plans to use the VSAT network for the company Intranet, for
training employees through video conferencing, and for access to warranty
information, price books and graphics.
    The HNS PES VSATs will be installed at 300 Les Schwab locations.  An HNS
PES terminal is located at each remote site on the network, providing
communications with the hub station located at the headquarters/data center.
The PES effectively supports data-intensive applications and at the same time
provides excellent response times for interactive applications.
    Founded in 1952, in Prineville, Oregon, privately-owned Les Schwab Tire
Centers has grown to one of the nation's largest independent retail tire store
chains.  Les Schwab tire centers offer complete tire service from lawn mower
tires to large earthmover tires in Oregon, Utah, Idaho, Montana, California
and Nevada.
    A world leader in satellite products and network systems for more than 25
years, HNS is the global VSAT market leader and has shipped more than 300,000
interactive and one-way terminals.  Headquartered in Germantown, Md., near
Washington, D.C., the company has sales and support offices worldwide.  HNS
offers communications network solutions that include a complete line of
integrated satellite, enterprise networking products, and fixed and mobile
wireless networks.  HNS is a unit of Hughes Electronics Corporation and an
ISO-9001-certified manufacturer.  The earnings of Hughes Electronics are used
to calculate the earnings per share attributable to GMH (NYSE symbol) common
stock.  More information on HNS can be found at http://www.hns.com .