FOR IMMEDIATE RELEASE Hughes Announces Results of Rights Offering
Total proceeds to the Company were $100 million, including the conversion of $68.4 million of principal of the $100 million loan to the Company from affiliates of Apollo Management, the Company’s largest stockholders, at the same $12.75 per share offering price. The $31.6 million net cash proceeds of the rights offering are being used by the Company to repay the balance of the $100 million loan from affiliates of Apollo Management in accordance with its terms. That loan, which has now been fully repaid, funded the January 2006 purchase by the Company of the 50% of Hughes Network Systems, LLC from The DIRECTV Group, Inc. that the Company did not previously own. In total, approximately 97.4% of the rights, representing 7,639,175 shares of the Company's common stock, were subscribed for as a result of the basic subscription privilege, with the remaining 203,966 shares being sold to shareholders exercising their oversubscription privileges. As a result of the transaction, the total number of shares of the Company's common stock on a fully diluted basis is approximately 19 million. Following the completion of the transaction, Apollo Management and its affiliates continue to own approximately 65% of the Company’s total common stock on a fully diluted basis. The shares sold to affiliates of Apollo Management were sold in reliance on Rule 506 under the Securities Act of 1933, as amended. The issuance of shares to affiliates of Apollo Management was not registered under the Securities Act of 1933, as amended, and such shares may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. About Hughes Communications, Inc. Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. For more information, please visit www.hughes.com. ### HUGHES and HUGHESNET are trademarks of Hughes Network Systems, LLC.
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