Hughes Offers Broad-based Stock OptionPlan.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 6, 1998--Nearly 14,000 employees will "Stock Up" on Hughes with the introduction of a new broad-based stock option program for most employees of Hughes Electronics Corp.

The "Stock Up on Hughes" program awards a stock option grant to purchase 100

"Through this program, each employee has the opportunity to participate personally in the growth of Hughes," said Michael T. Smith, chairman and chief executive officer of Hughes Electronics. "This program is a good way to remind Hughes employees that we're all in business together, working on the same team, toward the same goal."

"Stock Up on Hughes" is a standalone stock option program and is in addition to other compensation and benefit packages available to eligible employees.

"This program is designed to promote greater employee ownership of the company, which in turn fosters one of the most important elements of Hughes -- teamwork and the alignment of interests," Smith said.

In granting stock options to eligible employees, Hughes joins the ranks of progressive companies extending this type of program throughout its organization. Although many companies offer employees a stake in their companies with stock purchase plans, employee stock ownership plans (ESOPs), or stock investments through 401(k) plans, until recently, employees below the senior management levels rarely received stock options. Companies such as Merck, Proctor and Gamble, PepsiCo, Bank of America, Eastman Kodak Co., and Kellogg Co. are among the organizations offering broad-based stock option plans.

Approximately 5 million employees, out of a total U.S. workforce of 131 million, are eligible to receive stock options in the United States, according to surveys conducted by the National Center for Employee Ownership. The service/retail sector represents the largest concentration of eligible employees at 28%, followed by the high technology sector (27%), manufacturing (24%) and banking/finance/insurance (21%).

According to studies conducted by management consultants Towers Perrin, companies are adopting broad-based stock option plans for much the same reason they have traditionally offered stock options to top management: to forge a stronger link between employees' interests and the organization's interest.

"The strength of the entire Hughes team is unparalleled," Smith said. "And we have many opportunities to work together for the great benefit of our customers. Working together we can achieve our objective of an average of 20% annual revenue growth and even higher earnings growth during the next five years."

The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.

   CONTACT:  Hughes Electronics Corp., El Segundo
              Richard Dore, 310/662-9670