FOR IMMEDIATE RELEASE

Hughes Communications, Inc. Announces First Quarter 2006 Results

Hughes Network Systems, LLC Revenues Up 10%; EBITDA Increases by $18.3 Million to $16.2 Million from Negative $2.1 Million

Revenue Growth Seen in Both North America and International Segments

Germantown, Md., May 15, 2006—Hughes Communications, Inc. (Hughes) (OTCBB:HGCM), the global leader in broadband satellite network solutions and services, today announced financial results for the quarter ended March 31, 2006, its first quarter as a publicly traded company. Hughes’ consolidated operations are classified into three reportable segments: VSAT; Telecom Systems; and Other. VSAT and Telecom Systems represent all of the operations of Hughes Network Systems, LLC (HNS), Hughes’ principal operating subsidiary. The Other segment includes the financial results of Hughes Corporate, Electronic System Products, Inc., and the minority interest in the other companies that were contributed from SkyTerra Communications, Inc., Hughes’ predecessor, prior to the separation of SkyTerra and Hughes in February 2006.

Hughes Network Systems, LLC (HNS)

Revenue in Hughes’ wholly owned subsidiary, HNS, was $196.8 million in the first quarter of 2006, an increase of $18.6 million or 10% over revenues of $178.2 million in the same period in 2005.

Net income improved by $14.6 million to $0.2 million for the first quarter of 2006, compared to a loss of $14.4 million for the same period in 2005.

EBITDA improved by $18.3 million to $16.2 million for the quarter ended March 31, 2006 from negative $2.1 million for the same period in 2005.

Commenting on the first quarter performance, Pradman Kaul, President and Chief Executive Officer, said, “Overall, we are very pleased with the performance of the company in the first quarter. Revenue growth of 10% over the same quarter last year combined with approximately $18 million growth in EBITDA, underscore the excellent operating results. In addition, we launched the new HughesNet™ brand for all our broadband services.”

Mr. Kaul added, “Our financial results for the first quarter indicate that our key strategic thrusts are working well. We continue to see revenue growth being fueled by our North America Consumer/SMB and International service businesses for the rest of 2006. The cost cutting measures that we took in 2004 and 2005 are producing the desired results as evidenced by the significant improvement in operating and net income.”

Grant Barber, Chief Financial Officer, said, “We are pleased with the solid operating results posted in this quarter. In addition, our successful closing of $450 million of senior unsecured notes in early April, allowed us to retire our bank debt of $325 million. We also had a successful rights offering of $100 million to repay the Apollo debt borrowed in connection with the purchase of the remaining 50% of HNS’ equity from DIRECTV in January 2006. We are confident that, due to these actions, we now have a strong balance sheet with the resources available for us to pursue appropriate strategic initiatives, including SPACEWAY™.”

HNS operates in two business segments consisting of the very small aperture terminal, or VSAT, segment (including SPACEWAY), which provides satellite-based private networks to large enterprises and broadband Internet access to consumers and small and medium businesses and other business users such as small office and home office users, or SMBs, and the Telecom Systems segment consisting of HNS’ mobile satellite systems business unit and its terrestrial microwave business unit. Revenues in the VSAT segment increased 13%, driven by the strong performance of HNS’ North American Consumer/SMB and International businesses. During this quarter, there were more than 36,000 gross additions to HNS’ total subscriber base, with a churn of approximately 2%. Increased growth in HNS’ Indian and Brazilian subsidiaries contributed to the International revenue growth.

Set forth below is a table highlighting certain of HNS’ results for the three months ended March 31, 2006 and March 31, 2005 and the increase or decrease between the periods presented:

(a) For the definition of Adjusted EBITDA, see "Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures" below.

On April 13, 2006, Hughes’ wholly owned subsidiaries, HNS and HNS Finance Corp., issued $450 million in aggregate principal amount of 9.5% Senior Notes due 2014 in a private placement. The notes are guaranteed on a senior unsecured basis by each of HNS’ current and future domestic subsidiaries that guarantee HNS’ indebtedness or the indebtedness of any other HNS subsidiary guarantor. A portion of the net proceeds of the offering was used to repay term loan borrowings under HNS’ prior credit facilities. The remainder is available to HNS for general corporate purposes. In connection with the offering, HNS also amended its $50.0 million senior secured revolving credit facility pursuant to an amendment and restatement of the credit agreement governing this credit facility.

Select First Quarter Highlights

• Shipped one millionth VSAT terminal. This marks a major milestone in the global VSAT industry.
• Launched the HughesNet brand to replace the DIRECWAY^® brand. HughesNet encompasses all of HNS’ broadband service offerings for Enterprise, Government, and Consumer/SMB businesses.
• Launched the HughesNet Managed Network Services offerings. HughesNet Managed Network Services are designed to maximize reliability, minimize complexity, and optimize access techniques associated with operating enterprise-wide broadband networks.
• HN7740S was added to the HN7000S series of high-performance satellite routers. The HN7740S features two Voice over IP (VoIP) ports combined with two broadband LAN ports, enabling international service operators to deliver a flexible range of voice and high-speed data services from a single, compact, integrated platform.
• Successfully tested the SPACEWAY technology using DIRECTV's SPACEWAY 2 satellite and HNS’ Network Operations and Control Center and remote terminals.

Hughes Communications, Inc. (Hughes)

On January 1, 2006, Hughes Communications, Inc. consummated the purchase (the “January 2006 Acquisition”), from DTV Network Systems, Inc. of the remaining 50% of Hughes Network Systems, LLC for a purchase price of $100.0 million. As a result of the January 2006 Acquisition, Hughes Communications, Inc. now owns 100% of the Class A membership interests of HNS. As a result of the January 2006 Acquisition, Hughes Communications, Inc.’s business has changed materially. For periods following the closing of the January 2006 Acquisition, financial position and operating results of HNS is included in Hughes Communications Inc.’s consolidated financial statements. From April 22, 2005 (the date of the April 2005 Acquisition of the initial 50% interest in HNS) through December 31, 2005, Hughes Communications, Inc.’s investment in HNS is recorded using the equity method of accounting.

Certain financial information for Hughes is shown below. The financial information for the three months ended March 31, 2006 is a combination of the HNS and Other Businesses. Because the initial 50% interest in HNS was not acquired until April 2005, the financial information for the three months ended March 31, 2005 consists solely of the Other Businesses.

The condensed financial statements of Hughes and HNS as of March 31, 2006 and for the three months ended March 31, 2006 are attached to this press release.

(a) For the definition of EBITDA, see "Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures" below.

The net loss for the three months ended March 31, 2006 includes a tax charge of approximately $51.3 million in connection with the SkyTerra/Hughes separation. As Hughes is the accounting successor to SkyTerra, the taxes associated with the separation are included in Hughes’ results for the quarter ended March 31, 2006 and a portion of the deferred tax assets were utilized to satisfy the tax expense resulting from the taxable gain. Accordingly, Hughes does not expect this expense to have a significant impact on its cash from operations.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

The following table reconciles the differences between HNS’ net income as determined under United States of America generally accepted accounting principles (GAAP) and Adjusted EBITDA.

HUGHES NETWORK SYSTEMS, LLC
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

HUGHES COMMUNICATIONS, INC.
RECONCILIATION OF NET INCOME TO EBITDA

Note:
EBITDA is defined as HNS’ earnings (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA is used in calculating covenant compliance under HNS’ credit agreement and the indenture governing HNS’ 9½% Senior Notes due 2014. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain adjustments, including the net costs of SPACEWAY for the first quarter of 2005 to reflect the effects of the implementation of the SPACEWAY services agreement with DIRECTV, Inc. as if it had occurred on January 1, 2005. EBITDA and Adjusted EBITDA are not recognized terms under GAAP. EBITDA and Adjusted EBITDA do not represent net income or cash flows from operations, as these terms are defined under GAAP, and should not be considered as alternatives to net income as an indicator of HNS’ operating performance or to cash flows as a measure of liquidity. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of cash flow available to management for discretionary use, as such measures do not consider certain cash requirements such as capital expenditures (including expenditures on VSAT operating lease hardware and capitalized software development costs), tax payments, and debt service requirements (including VSAT operating lease hardware). EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA are presented herein because HNS and Hughes use such information in their review of the performance of management and in the performance of their business. In addition, information concerning Adjusted EBITDA is being presented because it reflects important components included in the financial covenants under the senior note indenture and HNS’ credit agreement.

About Hughes Communications, Inc.

Hughes Communications, Inc. (OTCBB:HGCM) is the 100 percent owner of Hughes Network Systems, LLC. Hughes is the global leader in providing broadband satellite networks and services for enterprises, governments, small businesses, and consumers. HughesNet encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on the IPoS (IP over Satellite) global standard, approved by the TIA, ETSI, and ITU standards organizations. To date, Hughes has shipped more than one million systems to customers in over 100 countries.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. For more information, please visit www.hughes.com.

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, discussions regarding industry outlook and the Company’s expectations regarding the performance of its business, its future liquidity and capital resource needs, its strategic plans and objectives and the ability to launch and deploy SPACEWAY 3. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “plans” and similar expressions and the use of future dates are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements are subject to certain risks, uncertainties and assumptions, including, but not limited to, the following: risks related to the Company’s substantial leverage and restrictions contained in its debt agreements, technological developments, its reliance on providers of satellite transponder capacity, changes in demand for the Company’s services and products, competition, industry trends, regulatory changes, foreign currency exchange rate fluctuations and other risks identified and discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 filed with the Securities and Exchange Commission on April 17, 2006 and in the other documents the Company files with the Securities and Exchange Commission from time to time.

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©Hughes Communications, Inc. All rights reserved. HUGHES, HUGHESNET, SPACEWAY, and IPOS are trademarks of Hughes Network Systems, LLC. DIRECTV and DIRECWAY are registered trademarks of The DIRECTV Group, Inc.

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