The AsiaSat HGS-1 spacecraft became the first commercial communications satellite to orbit the moon, passing behind it at noon PDT Wednesday to grab a boost from lunar gravity and hurtle back toward Earth. Engineers at the Hughes Mission Control Center in El Segundo, Calif., will begin braking maneuvers Saturday to guide the arriving spacecraft into orbit around the equator.

HGS-1 is a high-power satellite built by Hughes Space and

Communications Co. of Los Angeles, and owned by its subsidiary, Hughes

Global Services Inc. (HGS). It was designed to provide television and

other telecommunications services for Asia and neighboring regions.

During launch last Christmas Day, however, the rocket that was

carrying it malfunctioned, leaving the satellite in an unusable,

highly inclined, elliptical orbit. The original owner of the

spacecraft filed an insurance claim, and the insurers declared the

mission a total loss for its original purposes.

Hughes scientists and engineers weren't ready to give up on the

fully functional satellite, however. They devised a salvage mission

using the moon's gravity to reposition the satellite into a usable

circular orbit 22,300 miles above the equator, called geosynchronous

orbit.

It is the first known lunar mission involving a communications

satellite and the first lunar mission financed by a non-governmental

entity. If Hughes can put the HS 601HP model satellite into a useful

revenue-generating orbit, it has agreed to share profits with the

insurers.

HGS-1 began its lunar encounter at 11:52 a.m. PDT Wednesday.

Occultation — the period during which it was behind the moon and out

of radio contact with ground controllers — lasted until 12:20 p.m.

The satellite came within 3,883 miles of the moon's surface — called

perilune — at 12:55 p.m. It's now on a 3-day return trip to Earth.

Over the next three days, Hughes controllers will prepare the

satellite for a retro burn that will slow HGS-1 as it approaches

geosynchronous orbit. The spacecraft is expected to execute the

maneuvers around 8 p.m. PDT Saturday. Controllers are using satellite

ground stations, optical telescopes and radar facilities around the

world to track the spacecraft.

Hughes began the mission April 10, firing the satellite's onboard

rocket motor several times to raise its altitude. The 12th firing was

May 7, giving HGS-1 its final kick toward the moon.

Hughes Space and Communications, a unit of Hughes Electronics

Corp., has been building communications and scientific spacecraft and

instruments for more than 35 years. It is the world leader in

manufacturing commercial geostationary communications satellites.

Hughes Global Services packages commercial satellite services for

government and military customers. HGS also works with other Hughes

Electronics companies to provide end-to-end solutions for underserved

commercial markets.

PanAmSat Corp., of which Hughes Electronics is the majority

owner, has been providing critical command and tracking support for

the mission through its teleport in Fillmore, Calif. The earnings of

Hughes Electronics are used to calculate the earnings per share

attributable to GMH common stock.

Hughes Global

Hughes Space