10-22-07 Hughes Selected by TerreStar to Develop and Supply Satellite Chipset Platform

FOR IMMEDIATE RELEASE

Hughes Selected by TerreStar to Develop and Supply Satellite Chipset Platform

Technology Will Enable Dual-Mode Satellite / Wireless Mobile Devices

Germantown, Md., October 22, 2007 —Hughes Network Systems, LLC (HUGHES), the global leader in broadband satellite network solutions and services, today announced the signing of an agreement with TerreStar Networks Inc. (TerreStar), an emerging mobile communications network and majority owned subsidiary of TerreStar Corporation (TSTR), under which Hughes will design, develop, and supply a satellite chipset platform based on UMTS standards to enable wireless mobile devices to communicate over the satellite portion of TerreStar's network.

Based on a proposed industry standard, the technology will enable a new generation of dual-mode mobile devices that can operate seamlessly over both multi-generational wireless/satellite networks, supporting advanced video and data services, along with voice. Hughes plans to license the technology to manufacturers of cellular mobile handsets and devices, facilitating the integration of satellite-mode capability into their products. Size and weight of such dual-mode devices are expected to be competitive with terrestrial-only versions.

This agreement extends the original contract between Hughes and TerreStar announced in April 2007, for the design, development, and manufacture of a turnkey satellite base station subsystem (S-BSS) and satellite air interface protocol. The S-BSS will interface with the integrated satellite ground-based beam forming (GBBF) subsystem, which is also being developed by Hughes under a separate contract, and will be a key component of the satellite network portion of TerreStar's integrated satellite and terrestrial network.

Dennis Matheson, Chief Technology Officer at TerreStar said, “We are pleased to award Hughes with this contract amendment for the design of the satellite chipset platform based on the advanced capabilities of the UMTS standard. Hughes has the technology we require and the expertise to deliver the highest quality satellite and terrestrial solution. We have put together a highly qualified team of world-class companies to join TerreStar in delivering North America 's first next-generation, all IP-enabled mobile communications network with an integrated mobile satellite and terrestrial system and this chipset is an important piece in our network.”

“We are excited that TerreStar has chosen Hughes to supply the satellite chipset and platform for customer devices,” said Matthew Mohebbi, vice president of the MobileSat Division at Hughes. “Implementing this UMTS-based protocol expands on our existing, proven air-interface technology, which is operational in about a half million mobile satellite handhelds supplied by multiple successful manufacturers. We are confident that the leading cellular manufacturers will recognize the many benefits of this new satellite chipset, including efficiency of spectrum usage, open standardization, and ease of integration.”

About TerreStar Networks Inc.

TerreStar ( www.terrestar.com ), a majority owned subsidiary of TerreStar Corporation (NASDAQ: TSTR), plans to build, own and operate North America's first 4G integrated mobile satellite and terrestrial communications network that will provide universal access and tailored applications throughout North America over conventional wireless devices. TerreStar expects to be the first to offer customer-designed products and applications over a fully optimized 4G IP network.

About Hughes Network Systems

Hughes Network Systems, LLC (HUGHES) is the global leader in providing broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. HughesNet^® encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Hughes has shipped more than 1.2 million systems to customers in over 100 countries. Its broadband satellite products are based on the IPoS (IP over Satellite) global standard, approved by the TIA, ETSI, and ITU standards organizations.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. (NASDAQ: HUGH). For additional information, please visit www.hughes.com .