Hughes Reports First Quarter 2001 Financial Results; DIRECTV U.S. Business Grows Revenue by 25%; EBITDA by 61%

Editor's note: HUGHES invites reporters to participate in a listen-only

mode on its first quarter 2001 analyst call at 2 p.m. ET today. The dial-in

number is 719-457-2638 and the confirmation code is 471288. A live webcast of

HUGHES' earnings call will also be available at the company's website at

www.hughes.com. Please be advised to allow 15 minutes prior to the webcast to

download any necessary software. Following the completion of the call, the

webcast will be archived on the Investor Relations portion of the HUGHES

website.



Apr 17, 2001, 01:00 ET from Hughes Electronics Corporation

    EL SEGUNDO, Calif., April 17 /PRNewswire/ -- Hughes Electronics
 Corporation, a world-leading provider of digital television entertainment,
 broadband services, satellite-based private business networks, and global
 video and data broadcasting, today reported first quarter 2001 revenues
 increased 11.2% to $1,893.0 million, compared with $1,703.1 million in the
 first quarter of 2000.  EBITDA(1) for the quarter was $113.2 million and
 EBITDA margin(1) was 6.0%, compared to EBITDA of $152.7 million and EBITDA
 margin of 9.0% in the first quarter of 2000.
     "Our DIRECTV U.S. business continues to be our primary growth driver,"
 explained Michael T. Smith, HUGHES chairman and chief executive officer.
 "Despite uncertain economic conditions, we activated a record number of
 DIRECTV U.S. customers -- on a gross basis -- for the 14th consecutive
 quarter."
     Smith continued, "As a result, DIRECTV generated more than $1.3 billion in
 revenues in the quarter, an increase of 25% over the first quarter of 2000,
 and $50 million in EBITDA, a 61% improvement over the same period last year.
 DIRECTV Latin America also contributed to our growth with $165 million in
 revenues, a 45% increase over the previous year's first quarter."
     Smith added that the improved DIRECTV U.S. EBITDA in the quarter was more
 than offset by changes in sales and sales-type leases of PanAmSat satellite
 transponders, increased investment in Hughes Network Systems' (HNS) DirecPC(R)
 broadband business, and fewer sales of HNS' DIRECTV receiving systems.
     "Given the slowing economy, we believe it's prudent to adopt a cautious
 approach to growth at DIRECTV, while focusing even more on maximizing our
 returns," Smith continued.  "As such, we will manage our subscriber
 acquisition costs (SAC) to ensure we maintain or increase our return on
 investment, redouble our efforts to minimize churn, and generate increasing
 EBITDA."
     HUGHES had a first quarter 2001 net loss of $105.3 million, compared to a
 net loss of $81.9 million in the same period of 2000.  The decline was due to
 the reduced EBITDA and increased depreciation expense associated with
 PanAmSat's larger satellite fleet and the increased number of leased DIRECTV
 set-top boxes in Latin America, partially offset by the elimination of
 operating losses and one-time after-tax charges related to the discontinued
 DIRECTV Japan business.
 
 
                            Segment Financial Review
 
                            Direct-To-Home Broadcast
 
     First quarter revenues for the segment increased 26.9% to $1,489.9 million
 from $1,173.8 million in the first quarter of 2000.  The segment had EBITDA of
 $6.0 million compared with negative EBITDA of $9.2 million in the first
 quarter of 2000.
     United States: DIRECTV reported quarterly revenues of $1,324 million, an
 increase of 25% from last year's first quarter revenues of $1,059 million.
 The increase was primarily due to continued strong subscriber growth.
     DIRECTV added 840,000 gross subscribers in the quarter.  After accounting
 for expected churn, this resulted in net subscriber additions in the quarter
 of 340,000.  As of March 31, 2001, DIRECTV had more than 9.8 million
 subscribers, representing an 18% increase over the 8.3 million customers
 attained as of March 31, 2000.
     EBITDA for the first quarter of 2001 was $50 million compared to EBITDA of
 $31 million in last year's first quarter.  This increase was principally due
 to increased EBITDA resulting from the larger subscriber base, which more than
 offset the higher marketing costs associated with the record first quarter
 gross subscriber additions.
     Latin America: DIRECTV Latin America generated $165 million in revenues
 for the quarter compared with $114 million in the first quarter of 2000.  This
 45% increase was primarily due to continued strong subscriber growth.
     The DIRECTV service in Latin America added 101,000 net subscribers in the
 first quarter of 2001.  The total number of DIRECTV subscribers in Latin
 America as of March 31, 2001 was just over 1.4 million, compared to 909,000 as
 of March 31, 2000.
     DIRECTV Latin America had negative EBITDA of $44 million in the quarter
 compared to negative EBITDA of $38 million in the same period of 2000.  The
 change was primarily due to the impact of higher marketing expenses associated
 with the subscriber growth, which more than offset the increased EBITDA
 resulting from the larger subscriber base.
 
                               Satellite Services
 
     PanAmSat, which is 81%-owned by HUGHES, reported first quarter 2001
 revenues of $205.2 million compared with $299.1 million in the prior year's
 period.  The decrease was driven primarily by $94 million of first quarter
 2000 outright sales and sales-type leases, for which there were no comparable
 sales in the first quarter 2001.  While revenues from outright sales and
 sales-type leases represent substantial long-term commitments for PanAmSat
 services, virtually all of these revenues are recognized at service
 commencement.  Revenues from operating lease agreements are recognized monthly
 over the term of the agreement.  As a result, revenues from sales and
 sales-type lease transactions are subject to greater variation from period to
 period than revenues from operating leases.
     EBITDA for the quarter was $140.0 million, compared with first quarter
 2000 EBITDA of $201.0 million.  EBITDA margin in the first quarter of 2001 was
 68.2%, compared to 67.2% in the same period of 2000.  The decrease in EBITDA
 was principally due to the sales and sales-type leases executed in the first
 quarter 2000, and an increase in direct operating, and selling, general and
 administrative (SG&A) costs resulting from the company's continued fleet
 expansion, and increased investment in the new NET-36 initiative.  Excluding
 the impact of new sales and sales-type leases and operating costs associated
 with NET-36 from both quarters, EBITDA was $147.5 million and EBITDA margin
 was 72% for the first quarter 2001, compared to EBITDA of $153.3 million and
 EBITDA margin of 75% in the first quarter 2000.
     As of March 31, 2001, PanAmSat had contracts for satellite services
 representing future payments (backlog) of approximately $6.2 billion compared
 to approximately $6.0 billion at the end of the fourth quarter of 2000.  The
 increase was due primarily to new contracts with HBO, TBS, The WB Television
 Network and Warner Brothers Domestic Television Distribution services.
 
                                Network Systems
 
     Hughes Network Systems (HNS) generated first quarter 2001 revenues of
 $248.2 million versus $364.5 million in the first quarter of 2000.  The
 decline was principally due to lower sales of DIRECTV receiving equipment due
 primarily to the completion of the PRIMESTAR by DIRECTV conversion process in
 the third quarter of 2000.  HNS shipped 252,000 DIRECTV receiver systems in
 the first quarter of 2001, compared to 980,000 units in the same period last
 year.  HNS also introduced two new DIRECTV receivers during the quarter, one
 for high-definition television and the other featuring TiVo functionality.
     In the quarter, HNS had negative EBITDA of $38.3 million compared to
 EBITDA of $16.8 million in the first quarter of 2000.  The decline in EBITDA
 is primarily attributable to lower shipments of and decreased manufacturing
 subsidies on DIRECTV receivers, and increased investment in DirecPC to grow
 its broadband subscriber base.  In the quarter, DirecPC added nearly
 11,000 net subscribers, bringing the cumulative total to approximately
 62,000 broadband consumers in the United States.
     HNS booked over $200 million of new orders in its Enterprise business in
 the first quarter of 2001, a 17% increase from the same period a year ago.
 The increase in backlog was primarily attributable to a new service agreement
 with a major processor of debit and credit card transactions.  HNS ended the
 first quarter with a backlog of more than $500 million in its Enterprise
 business.
 
                                 BALANCE SHEET
 
     From December 31, 2000 to March 31, 2001, the Company's consolidated cash
 balance increased $19.5 million to $1,527.6 million and total debt increased
 $379.5 million to $1,696.1 million.
 
     Hughes Electronics Corporation is a unit of General Motors Corporation.
 The earnings of Hughes Electronics are used to calculate the earnings
 attributable to the General Motors Class H common stock (NYSE:   GMH).
 
     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 General Motors 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.
 
 
     CONSOLIDATED STATEMENTS OF OPERATIONS AND
     AVAILABLE SEPARATE CONSOLIDATED NET LOSS
     (Dollars in Millions)
     (Unaudited)                                          Three Months
                                                         Ended March 31,
                                                     2001               2000
     Revenues
     Direct broadcast, leasing and other
      services                                     $1,698.2           $1,472.4
     Product sales                                    194.8              230.7
     Total Revenues                                 1,893.0            1,703.1
     Operating Costs and Expenses
     Broadcast programming and other
      costs                                           738.7              667.8
     Cost of products sold                            154.5              188.5
     Selling, general and administrative
      expenses                                        886.6              694.1
     Depreciation and amortization                    265.7              210.2
     Total Operating Costs and Expenses             2,045.5            1,760.6
 
     Operating Loss                                  (152.5)             (57.5)
 
     Interest income                                   23.8                3.9
     Interest expense                                 (50.6)             (44.9)
     Other, net                                         7.2             (239.2)
     Loss From Continuing Operations
      Before Income Taxes, Minority
      Interests and Cumulative Effect
      of Accounting Change                           (172.1)            (337.7)
 
     Income tax benefit                                49.9              221.8
     Minority interests in net losses of
      subsidiaries                                     24.3                7.6
 
     Loss from continuing operations
      before cumulative effect of
      accounting change                               (97.9)            (108.3)
     Income from discontinued operations,
      net of taxes                                       --               26.4
 
     Loss before cumulative effect of
      accounting change                               (97.9)             (81.9)
     Cumulative effect of accounting
      change, net of taxes                             (7.4)                --
 
     Net Loss                                        (105.3)             (81.9)
 
     Adjustment to exclude the effect of
      GM purchase accounting                            0.8                5.3
 
     Loss Excluding the Effect of GM
      Purchase Accounting Adjustment                 (104.5)             (76.6)
 
     Preferred stock dividends                        (24.1)             (24.7)
 
     Loss Used for Computation of
      Available Separate Consolidated
      Net Loss                                      $(128.6)           $(101.3)
 
     Available Separate Consolidated
      Net Loss
     Average number of shares of General
      Motors Class H
        Common Stock outstanding (in
         millions) (Numerator)                        875.4              413.4
     Average Class H dividend base (in
      millions) (Denominator)                       1,299.1            1,294.5
     Available Separate Consolidated
      Net Loss                                       $(86.7)            $(32.4)
 
     Certain 2000 amounts have been reclassified to conform to the 2001
     presentation.
 
 
     CONSOLIDATED BALANCE SHEETS
     (Dollars in Millions)                          March 31,    December 31,
                                                       2001          2000
     ASSETS                                        (Unaudited)
     Current Assets
     Cash and cash equivalents                       $1,527.6       $1,508.1
     Accounts and notes receivable                    1,347.9        1,253.0
     Contracts in process                               168.6          186.0
     Inventories                                        431.5          338.0
     Deferred income taxes                               94.7           89.9
     Prepaid expenses and other                         857.9          778.7
 
     Total Current Assets                             4,428.2        4,153.7
     Satellites, net                                  4,372.4        4,230.0
     Property, net                                    1,748.5        1,707.8
     Net Investment in Sales-type Leases                202.3          221.1
     Intangible Assets, net                           7,104.7        7,151.3
     Investments and Other Assets                     1,386.3        1,815.4
 
     Total Assets                                   $19,242.4      $19,279.3
 
     LIABILITIES AND STOCKHOLDER'S EQUITY
     Current Liabilities
     Accounts payable                                $1,348.6       $1,224.2
     Deferred revenues                                  136.6          137.6
     Short-term borrowings and current portion
      of long-term debt                                 382.9           24.6
     Accrued liabilities and other                    1,188.0        1,304.5
 
     Total Current Liabilities                        3,056.1        2,690.9
     Long-Term Debt                                   1,313.2        1,292.0
     Other Liabilities and Deferred Credits           1,646.2        1,647.3
     Deferred Income Taxes                              666.3          769.3
     Commitments and Contingencies
     Minority Interests                                 524.2          553.7
     Stockholder's Equity                            12,036.4       12,326.1
 
     Total Liabilities and Stockholder's Equity     $19,242.4      $19,279.3
 
     Holders of GM Class H common stock have no direct rights in the equity or
     assets of Hughes, but rather have rights in the equity and assets of
     General Motors (which includes 100% of the stock of Hughes).
 
 
     SELECTED SEGMENT DATA
     (Dollars in Millions)
     (Unaudited)                                         Three Months
                                                        Ended March 31,
                                                     2001              2000
     DIRECT-TO-HOME BROADCAST
     Total Revenues                             $1,489.9          $1,173.8
     EBITDA (1)                                     $6.0             $(9.2)
     EBITDA Margin (1)                              0.4%               N/A
     Operating Loss                              $(145.5)          $(126.0)
     Depreciation and Amortization                $151.5            $116.8
     Capital Expenditures                         $127.6            $168.0
 
     SATELLITE SERVICES
     Total Revenues                               $205.2            $299.1
     EBITDA (1)                                   $140.0            $201.0
     EBITDA Margin (1)                             68.2%             67.2%
     Operating Profit                              $41.1            $127.3
     Operating Profit Margin                       20.0%             42.6%
     Depreciation and Amortization                 $98.9             $73.7
     Capital Expenditures                          $67.2            $158.0
 
     NETWORK SYSTEMS
     Total Revenues                               $248.2            $364.5
     EBITDA (1)                                   $(38.3)            $16.8
     EBITDA Margin (1)                               N/A              4.6%
     Operating Profit (Loss)                      $(52.6)             $0.1
     Depreciation and Amortization                 $14.3             $16.7
     Capital Expenditures                         $178.2             $67.6
 
     ELIMINATIONS and OTHER
     Total Revenues                               $(50.3)          $(134.3)
     EBITDA (1)                                     $5.5            $(55.9)
     Operating Profit (Loss)                        $4.5            $(58.9)
     Depreciation and Amortization                  $1.0              $3.0
     Capital Expenditures                         $(21.8)            $20.7
 
     TOTAL
     Total Revenues                             $1,893.0          $1,703.1
     EBITDA (1)                                   $113.2            $152.7
     EBITDA Margin (1)                              6.0%              9.0%
     Operating Loss                              $(152.5)           $(57.5)
     Depreciation and Amortization                $265.7            $210.2
     Capital Expenditures                         $351.2            $414.3
 
     Certain 2000 amounts have been reclassified to conform to the 2001
     presentation.
 
     (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.
 
 

SOURCE Hughes Electronics Corporation
    EL SEGUNDO, Calif., April 17 /PRNewswire/ -- Hughes Electronics
 Corporation, a world-leading provider of digital television entertainment,
 broadband services, satellite-based private business networks, and global
 video and data broadcasting, today reported first quarter 2001 revenues
 increased 11.2% to $1,893.0 million, compared with $1,703.1 million in the
 first quarter of 2000.  EBITDA(1) for the quarter was $113.2 million and
 EBITDA margin(1) was 6.0%, compared to EBITDA of $152.7 million and EBITDA
 margin of 9.0% in the first quarter of 2000.
     "Our DIRECTV U.S. business continues to be our primary growth driver,"
 explained Michael T. Smith, HUGHES chairman and chief executive officer.
 "Despite uncertain economic conditions, we activated a record number of
 DIRECTV U.S. customers -- on a gross basis -- for the 14th consecutive
 quarter."
     Smith continued, "As a result, DIRECTV generated more than $1.3 billion in
 revenues in the quarter, an increase of 25% over the first quarter of 2000,
 and $50 million in EBITDA, a 61% improvement over the same period last year.
 DIRECTV Latin America also contributed to our growth with $165 million in
 revenues, a 45% increase over the previous year's first quarter."
     Smith added that the improved DIRECTV U.S. EBITDA in the quarter was more
 than offset by changes in sales and sales-type leases of PanAmSat satellite
 transponders, increased investment in Hughes Network Systems' (HNS) DirecPC(R)
 broadband business, and fewer sales of HNS' DIRECTV receiving systems.
     "Given the slowing economy, we believe it's prudent to adopt a cautious
 approach to growth at DIRECTV, while focusing even more on maximizing our
 returns," Smith continued.  "As such, we will manage our subscriber
 acquisition costs (SAC) to ensure we maintain or increase our return on
 investment, redouble our efforts to minimize churn, and generate increasing
 EBITDA."
     HUGHES had a first quarter 2001 net loss of $105.3 million, compared to a
 net loss of $81.9 million in the same period of 2000.  The decline was due to
 the reduced EBITDA and increased depreciation expense associated with
 PanAmSat's larger satellite fleet and the increased number of leased DIRECTV
 set-top boxes in Latin America, partially offset by the elimination of
 operating losses and one-time after-tax charges related to the discontinued
 DIRECTV Japan business.
 
 
                            Segment Financial Review
 
                            Direct-To-Home Broadcast
 
     First quarter revenues for the segment increased 26.9% to $1,489.9 million
 from $1,173.8 million in the first quarter of 2000.  The segment had EBITDA of
 $6.0 million compared with negative EBITDA of $9.2 million in the first
 quarter of 2000.
     United States: DIRECTV reported quarterly revenues of $1,324 million, an
 increase of 25% from last year's first quarter revenues of $1,059 million.
 The increase was primarily due to continued strong subscriber growth.
     DIRECTV added 840,000 gross subscribers in the quarter.  After accounting
 for expected churn, this resulted in net subscriber additions in the quarter
 of 340,000.  As of March 31, 2001, DIRECTV had more than 9.8 million
 subscribers, representing an 18% increase over the 8.3 million customers
 attained as of March 31, 2000.
     EBITDA for the first quarter of 2001 was $50 million compared to EBITDA of
 $31 million in last year's first quarter.  This increase was principally due
 to increased EBITDA resulting from the larger subscriber base, which more than
 offset the higher marketing costs associated with the record first quarter
 gross subscriber additions.
     Latin America: DIRECTV Latin America generated $165 million in revenues
 for the quarter compared with $114 million in the first quarter of 2000.  This
 45% increase was primarily due to continued strong subscriber growth.
     The DIRECTV service in Latin America added 101,000 net subscribers in the
 first quarter of 2001.  The total number of DIRECTV subscribers in Latin
 America as of March 31, 2001 was just over 1.4 million, compared to 909,000 as
 of March 31, 2000.
     DIRECTV Latin America had negative EBITDA of $44 million in the quarter
 compared to negative EBITDA of $38 million in the same period of 2000.  The
 change was primarily due to the impact of higher marketing expenses associated
 with the subscriber growth, which more than offset the increased EBITDA
 resulting from the larger subscriber base.
 
                               Satellite Services
 
     PanAmSat, which is 81%-owned by HUGHES, reported first quarter 2001
 revenues of $205.2 million compared with $299.1 million in the prior year's
 period.  The decrease was driven primarily by $94 million of first quarter
 2000 outright sales and sales-type leases, for which there were no comparable
 sales in the first quarter 2001.  While revenues from outright sales and
 sales-type leases represent substantial long-term commitments for PanAmSat
 services, virtually all of these revenues are recognized at service
 commencement.  Revenues from operating lease agreements are recognized monthly
 over the term of the agreement.  As a result, revenues from sales and
 sales-type lease transactions are subject to greater variation from period to
 period than revenues from operating leases.
     EBITDA for the quarter was $140.0 million, compared with first quarter
 2000 EBITDA of $201.0 million.  EBITDA margin in the first quarter of 2001 was
 68.2%, compared to 67.2% in the same period of 2000.  The decrease in EBITDA
 was principally due to the sales and sales-type leases executed in the first
 quarter 2000, and an increase in direct operating, and selling, general and
 administrative (SG&A) costs resulting from the company's continued fleet
 expansion, and increased investment in the new NET-36 initiative.  Excluding
 the impact of new sales and sales-type leases and operating costs associated
 with NET-36 from both quarters, EBITDA was $147.5 million and EBITDA margin
 was 72% for the first quarter 2001, compared to EBITDA of $153.3 million and
 EBITDA margin of 75% in the first quarter 2000.
     As of March 31, 2001, PanAmSat had contracts for satellite services
 representing future payments (backlog) of approximately $6.2 billion compared
 to approximately $6.0 billion at the end of the fourth quarter of 2000.  The
 increase was due primarily to new contracts with HBO, TBS, The WB Television
 Network and Warner Brothers Domestic Television Distribution services.
 
                                Network Systems
 
     Hughes Network Systems (HNS) generated first quarter 2001 revenues of
 $248.2 million versus $364.5 million in the first quarter of 2000.  The
 decline was principally due to lower sales of DIRECTV receiving equipment due
 primarily to the completion of the PRIMESTAR by DIRECTV conversion process in
 the third quarter of 2000.  HNS shipped 252,000 DIRECTV receiver systems in
 the first quarter of 2001, compared to 980,000 units in the same period last
 year.  HNS also introduced two new DIRECTV receivers during the quarter, one
 for high-definition television and the other featuring TiVo functionality.
     In the quarter, HNS had negative EBITDA of $38.3 million compared to
 EBITDA of $16.8 million in the first quarter of 2000.  The decline in EBITDA
 is primarily attributable to lower shipments of and decreased manufacturing
 subsidies on DIRECTV receivers, and increased investment in DirecPC to grow
 its broadband subscriber base.  In the quarter, DirecPC added nearly
 11,000 net subscribers, bringing the cumulative total to approximately
 62,000 broadband consumers in the United States.
     HNS booked over $200 million of new orders in its Enterprise business in
 the first quarter of 2001, a 17% increase from the same period a year ago.
 The increase in backlog was primarily attributable to a new service agreement
 with a major processor of debit and credit card transactions.  HNS ended the
 first quarter with a backlog of more than $500 million in its Enterprise
 business.
 
                                 BALANCE SHEET
 
     From December 31, 2000 to March 31, 2001, the Company's consolidated cash
 balance increased $19.5 million to $1,527.6 million and total debt increased
 $379.5 million to $1,696.1 million.
 
     Hughes Electronics Corporation is a unit of General Motors Corporation.
 The earnings of Hughes Electronics are used to calculate the earnings
 attributable to the General Motors Class H common stock (NYSE:   GMH).
 
     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 General Motors 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.
 
 
     CONSOLIDATED STATEMENTS OF OPERATIONS AND
     AVAILABLE SEPARATE CONSOLIDATED NET LOSS
     (Dollars in Millions)
     (Unaudited)                                          Three Months
                                                         Ended March 31,
                                                     2001               2000
     Revenues
     Direct broadcast, leasing and other
      services                                     $1,698.2           $1,472.4
     Product sales                                    194.8              230.7
     Total Revenues                                 1,893.0            1,703.1
     Operating Costs and Expenses
     Broadcast programming and other
      costs                                           738.7              667.8
     Cost of products sold                            154.5              188.5
     Selling, general and administrative
      expenses                                        886.6              694.1
     Depreciation and amortization                    265.7              210.2
     Total Operating Costs and Expenses             2,045.5            1,760.6
 
     Operating Loss                                  (152.5)             (57.5)
 
     Interest income                                   23.8                3.9
     Interest expense                                 (50.6)             (44.9)
     Other, net                                         7.2             (239.2)
     Loss From Continuing Operations
      Before Income Taxes, Minority
      Interests and Cumulative Effect
      of Accounting Change                           (172.1)            (337.7)
 
     Income tax benefit                                49.9              221.8
     Minority interests in net losses of
      subsidiaries                                     24.3                7.6
 
     Loss from continuing operations
      before cumulative effect of
      accounting change                               (97.9)            (108.3)
     Income from discontinued operations,
      net of taxes                                       --               26.4
 
     Loss before cumulative effect of
      accounting change                               (97.9)             (81.9)
     Cumulative effect of accounting
      change, net of taxes                             (7.4)                --
 
     Net Loss                                        (105.3)             (81.9)
 
     Adjustment to exclude the effect of
      GM purchase accounting                            0.8                5.3
 
     Loss Excluding the Effect of GM
      Purchase Accounting Adjustment                 (104.5)             (76.6)
 
     Preferred stock dividends                        (24.1)             (24.7)
 
     Loss Used for Computation of
      Available Separate Consolidated
      Net Loss                                      $(128.6)           $(101.3)
 
     Available Separate Consolidated
      Net Loss
     Average number of shares of General
      Motors Class H
        Common Stock outstanding (in
         millions) (Numerator)                        875.4              413.4
     Average Class H dividend base (in
      millions) (Denominator)                       1,299.1            1,294.5
     Available Separate Consolidated
      Net Loss                                       $(86.7)            $(32.4)
 
     Certain 2000 amounts have been reclassified to conform to the 2001
     presentation.
 
 
     CONSOLIDATED BALANCE SHEETS
     (Dollars in Millions)                          March 31,    December 31,
                                                       2001          2000
     ASSETS                                        (Unaudited)
     Current Assets
     Cash and cash equivalents                       $1,527.6       $1,508.1
     Accounts and notes receivable                    1,347.9        1,253.0
     Contracts in process                               168.6          186.0
     Inventories                                        431.5          338.0
     Deferred income taxes                               94.7           89.9
     Prepaid expenses and other                         857.9          778.7
 
     Total Current Assets                             4,428.2        4,153.7
     Satellites, net                                  4,372.4        4,230.0
     Property, net                                    1,748.5        1,707.8
     Net Investment in Sales-type Leases                202.3          221.1
     Intangible Assets, net                           7,104.7        7,151.3
     Investments and Other Assets                     1,386.3        1,815.4
 
     Total Assets                                   $19,242.4      $19,279.3
 
     LIABILITIES AND STOCKHOLDER'S EQUITY
     Current Liabilities
     Accounts payable                                $1,348.6       $1,224.2
     Deferred revenues                                  136.6          137.6
     Short-term borrowings and current portion
      of long-term debt                                 382.9           24.6
     Accrued liabilities and other                    1,188.0        1,304.5
 
     Total Current Liabilities                        3,056.1        2,690.9
     Long-Term Debt                                   1,313.2        1,292.0
     Other Liabilities and Deferred Credits           1,646.2        1,647.3
     Deferred Income Taxes                              666.3          769.3
     Commitments and Contingencies
     Minority Interests                                 524.2          553.7
     Stockholder's Equity                            12,036.4       12,326.1
 
     Total Liabilities and Stockholder's Equity     $19,242.4      $19,279.3
 
     Holders of GM Class H common stock have no direct rights in the equity or
     assets of Hughes, but rather have rights in the equity and assets of
     General Motors (which includes 100% of the stock of Hughes).
 
 
     SELECTED SEGMENT DATA
     (Dollars in Millions)
     (Unaudited)                                         Three Months
                                                        Ended March 31,
                                                     2001              2000
     DIRECT-TO-HOME BROADCAST
     Total Revenues                             $1,489.9          $1,173.8
     EBITDA (1)                                     $6.0             $(9.2)
     EBITDA Margin (1)                              0.4%               N/A
     Operating Loss                              $(145.5)          $(126.0)
     Depreciation and Amortization                $151.5            $116.8
     Capital Expenditures                         $127.6            $168.0
 
     SATELLITE SERVICES
     Total Revenues                               $205.2            $299.1
     EBITDA (1)                                   $140.0            $201.0
     EBITDA Margin (1)                             68.2%             67.2%
     Operating Profit                              $41.1            $127.3
     Operating Profit Margin                       20.0%             42.6%
     Depreciation and Amortization                 $98.9             $73.7
     Capital Expenditures                          $67.2            $158.0
 
     NETWORK SYSTEMS
     Total Revenues                               $248.2            $364.5
     EBITDA (1)                                   $(38.3)            $16.8
     EBITDA Margin (1)                               N/A              4.6%
     Operating Profit (Loss)                      $(52.6)             $0.1
     Depreciation and Amortization                 $14.3             $16.7
     Capital Expenditures                         $178.2             $67.6
 
     ELIMINATIONS and OTHER
     Total Revenues                               $(50.3)          $(134.3)
     EBITDA (1)                                     $5.5            $(55.9)
     Operating Profit (Loss)                        $4.5            $(58.9)
     Depreciation and Amortization                  $1.0              $3.0
     Capital Expenditures                         $(21.8)            $20.7
 
     TOTAL
     Total Revenues                             $1,893.0          $1,703.1
     EBITDA (1)                                   $113.2            $152.7
     EBITDA Margin (1)                              6.0%              9.0%
     Operating Loss                              $(152.5)           $(57.5)
     Depreciation and Amortization                $265.7            $210.2
     Capital Expenditures                         $351.2            $414.3
 
     Certain 2000 amounts have been reclassified to conform to the 2001
     presentation.
 
     (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.
 
 SOURCE  Hughes Electronics Corporation

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