IBM AND HUGHES NETWORK SYSTEMS ANNOUNCE TECHNICAL ALLIANCE TO ESTABLISH
ELECTRONIC DELIVERY SERVICES

SOMERS, N.Y., and GERMANTOWN, MD., November 1, 1994 . . . IBM Corporation,
the world's largest software company, and Hughes Network Systems (HNS),
the world's largest VSAT (Very Small Aperture Terminal) satellite
networking company, today announced a technical partnership to enhance
satellite delivery of software, multimedia and other information. By
combining the best characteristics of electronic software distribution
methods with the speed and reliability of satellite technology, the
partnership will put products into the hands of customers in a fraction of
the time it takes to produce and deliver a shrink-wrapped package.

According to the terms of the agreement, IBM Software Manufacturing
Solutions will be able to build offerings to market digital information
delivery services to corporate customers, resellers, retailers and
consumers based on HNS's DirecPC service, which was also announced today.
Potential pilot services include:

  -  IBM touch screen, interactive kiosks in retail stores, where
     customers can shop for and order software products,
     including business applications and games, then replicate
     onto diskette or CD-ROM in the store

  -  Software maintenance delivery, such as "fixes," using IBM's
     ServiceLink interface and Hughes' DirecPC service;

  -  Corporate account services such as end-to-end software
     delivery, distribution, and internal redistribution
     services;

  -  Comprehensive order fulfillment capabilities, including
     the ability to customize orders per customer profiles;

  -  Electronic delivery of software, multimedia and other
     digital information products to resellers and retailers, as
     "virtual inventory" for on-demand distribution to their
     customers.

     **Software maintenance delivery and interactive kiosk with
     diskette replication will be demonstrated at Fall COMDEX,
     Booth #L4330 **

"Both IBM and Hughes have led developments in electronic delivery, and have
in place proven networks that reach global markets, said Walt Price, vice
president, IBM Software Manufacturing Solutions. "In August, IBM announced
electronic software distribution using the IBM Global Network. Now we are
working with Hughes to beam software via satellite, and to redefine
'delivery' into the next century. For example, IBM expects to distribute
up to 80 percent of software maintenance services via satellite by the end
of next year."

Pradman Kaul, president and chief operating officer, Hughes Network
Systems, said, "Together, our organizations have the potential to increase
distribution efficiency, expand the content choices, and improve the way
in which products and services are delivered."

Specific core competencies being combined in this alliance include:

  -  HNS's market share of over 65% of the interactive
     VSAT networks worldwide, with over 70,000 VSAT terminals
     installed;

  -  HNS's installed base of over 240 networks in 40
     countries;

  -  HNS's 20 plus years experience in satellite and
     digital communications networking, including the development
     of the world's first interactive, Ku-band VSAT systems in
     1982;

  -  GM Hughes Electronics' DIRECTV direct-to-the-home
     satellite delivered television.  System is currently being
     deployed nationwide;

  -  IBM's broad spectrum of delivery capabilities,
     ranging from physical delivery on traditional media such as
     diskette, tape and video, to CD-ROM marketing tools, and
     electronic packaging and delivery of products;

  -  IBM's "middleware" products, such as NetView
     Distribution Manager(NetView DM), which receive and rapidly
     disperse digital objects, such as software, within a
     corporate enterprise;

  -  IBM's central data repositories, which contain
     10,000 IBM and non-IBM software and information products;

  -  IBM's central data acquisition and data management
     capabilities, with the ability to customize products
     delivered according to customer profiles, which are
     continually updated;

  -  IBM's interactive kiosks provided by Direct Customer Access
     and Kiosk Solutions.

IBM and Hughes plan to release details of upcoming services first quarter
1995.

Hughes Network Systems, Inc., a unit of GM Hughes Electronics, is a global
leader in satellite, digital cellular and enterprise networking
technologies.  HNS manufactures a variety of VSAT networks for data, voice
and video applications. HNS's Strategy product line includes a full range
of internetworking products for use in mission-critical, multi-national
networks.  HNS also manufactures a universal wireless digital cellular
system which supports a variety of applications.  Earnings of GM Hughes
are used to calculate the earnings per share of General Motors Class II
Common Stock (NYSE:GMH).

IBM Software Manufacturing Solutions is part of IBM Software Solutions, an
IBM division headquartered in Somers, N.Y. IBM Software Manufacturing
Solutions offers to software publishers and information providers a broad
spectrum of software manufacturing and distribution services worldwide,
ranging from electronic distribution and packaging, to consulting,
replicating (diskette, tape, compact disc), printing, translation,
localization, packaging, shipping and order fulfillment.

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