Engineers at DirecTV, Inc. and Hughes Space and Communications Company confirmed today that a spacecraft control processor (SCP) aboard the DBS-1 satellite failed on July 4, 1998. As designed, control of the HS 601-model satellite was automatically switched to the spare SCP and the spacecraft is currently operating normally.

At no time did DirecTV's more than 3.7 million subscribers

experience any loss of service.

DirecTV maintains a redundant infrastructure to anticipate and

mitigate the consequences of possible satellite failures. In the

event that the back-up SCP on-board DBS-1 should also fail, DirecTV

would immediately switch most of the affected programming services

to the DBS-2 and DBS-3 satellites, which are collocated with DBS-1

at 101-degrees WL. In addition, DirecTV continues to actively

pursue other satellite back-up and fleet expansion strategies

consistent with its long-term business plans.

DirecTV

Hughes