Hughes Announces Formation of HughesNet China Co. Ltd.

Aug. 3

Hughes Network Systems, LLC announced the formation of HughesNet China Co. Ltd., a joint venture of Hughes and China UnifiedNet, demonstrating the Company's commitment to serve this strategic and rapidly growing market.

HughesNet China and its licensed partner, Beijing UnifiedNet (together known as "Hughes China") will offer a wide range of managed broadband network services to leading telecom carriers and major enterprise customers, and will support the government's initiatives in expanding rural development through access to education and emergency communications across China.

Mr. Ivan Chow, chief operating officer of China UnifiedNet and a director of HughesNet China, stated, "Hughes China has entered into framework agreements with two of the leading telecom carriers to provide managed services to their major business and government customers using both satellite and terrestrial technologies, and to provide services to meet the needs of rural education and emergency communications in the western provinces of China."

Reflecting the Chinese government's priority on investments in education for rural development, Hughes China is committed to extending broadband access in all rural areas. Dr. Li Zhimin, director general, Center for Science and Technology Development, Ministry of Education, said, "Satellite broadband access from Hughes China will be an important part of extending education and training to the people residing even in the most remote areas of China, which will play a crucial role in rural development."

Bahram Pourmand, executive vice president, International Division, Hughes, commented, "This is an important major step in our Hughes global services strategy, expanding on our successful 20-year plus record of supplying satellite broadband technology to major operators in this huge market. We look forward to working with our Chinese partners in bringing our extensive operating experience gained from Hughes service companies in North America, Europe, India, and Brazil, and our rapidly growing network of independent service providers in other parts of the world."

Hughes China, headquartered in Beijing, expects to commence commercial services in the fourth quarter of this year utilizing the latest Hughes technologies, including HN System Network Operations Centers (NOCs) in Beijing and Chengdu, and high-performance HN9200 and HN9400 broadband satellite routers.