The Companies said that this alliance will accelerate subscriber growth and revenue-per-subscriber for Hughes' DIRECTV( television entertainment service and DirecPC( satellite-based broadband Internet delivery system, as well as extend the reach of America Online's developing AOL TV interactive television and high-speed AOL-Plus services. America Online and Hughes also plan to jointly develop new content and interactive services for the U.S. market and elsewhere in the world.

This new alliance builds on the Companies' earlier agreement to develop a "combination" set-top receiver to make DIRECTV/AOL TV available to consumers next year. The Companies will launch an extensive cross-marketing initiative to package and extend the reach of both AOL TV and DIRECTV. Hughes and America Online will market the DIRECTV/AOL TV package to America Online's more than 16 million AOL and CompuServe members in the United States, as well as to millions more consumers of its Internet brands. Hughes also will market AOL TV to its more than 7 million current DIRECTV subscribers, and to millions of potential new subscribers through its extensive network of retail outlets.

The Companies will also make the AOL-Plus broadband service available nationwide via the DirecPC satellite Internet network by early 2000. This initiative builds on America Online's recently announced partnerships with Bell Atlantic and SBC Communications to deliver DSL broadband connectivity to AOL members. The DirecPC network provides broadband download speeds up to 14 times faster than the standard 28.8 kilobits-per-second analog modem. AOL-Plus members will be able to transmit information back over standard telephone lines at speeds as fast as 56.6 kbps.

Hughes Network Systems, a unit of Hughes, provides the DirecPC system and service, and will design and initially manufacture the combination DIRECTV/AOL TV set-top receiver. The alliance will also enhance the development of Hughes' next-generation satellite system for two-way, broadband connectivity, known as Spaceway(tm), scheduled to launch in 2002. Hughes previously announced a $1.4 billion investment to design, manufacture and launch the North American system and accompanying ground infrastructure.

Under the agreement, America Online will make a $1.5 billion strategic investment in a General Motors equity security, which carries a 6-1/4% coupon rate, that is automatically convertible into GM Class H common stock (GMH) at a 24 percent premium in three years. GM will immediately invest the $1.5 billion in a security of Hughes under similar terms where it will be employed to implement the strategic alliance between AOL and Hughes. AOL said the investment would be non-dilutive to its earnings. Over the next three years, Hughes is making a major commitment to market AOL TV and AOL-Plus, as well as accelerate the growth of DIRECTV and DirecPC. Among its planned expenditures are:

- More than $500 million for AOL-Plus via DirecPC through both America Online brands and Hughes retail channels
- Up to $500 million for DIRECTV, including more than $150 million in marketing to AOL members
- Approximately $400 million for the combined DIRECTV/AOL TV service
- Approximately $100 million for DirecDuo, which enables subscribers to access the DIRECTV and DirecPC networks with a single satellite dish.

America Online and Hughes have agreed to explore making broadband satellite offerings available in Latin America as that market evolves.

The joint venture will supply thin-wall, low-cost, high performance cylinder liners. "Our Lake City facility is recognized as a leading manufacturer of heavy duty cylinder liners in North America, and Teikoku is well established as a supplier of automotive liners in Japan," said Mike Verwilst, vice president, Powertrain Systems - Americas. "This combination of manufacturing expertise and product technology will serve the growing needs of automotive engine manufacturers in North America very well."

Federal-Mogul and Teikoku Piston Ring currently have joint ventures in China, India and the United Kingdom, as well as technology license agreements in Germany, France, Turkey, Korea, the United Kingdom and the United States of America.

The Lear Extractable Safety Seat System was named best in the Safety category of systems in production. Although the Extractable Safety Seat was developed and tested for use in Formula One (F-1) open cockpit vehicles, Lear engineers are using the knowledge gained during the production of the system to someday benefit every driver.The Extractable Safety Seat System has been mandated by the FIA for inclusion in all F-1 vehicles for 1999 and beyond. Lear also was awarded the SEMA Motorsports Award for 1998 in recognition of the seat's outstanding contribution to safety in motorsports.

In the Concept Division, Lear swept the Manufacturing Technology category with a first place for EnviroFibre(TM) Recycled Urethane for Automotive Applications. The ElectroBond(TM) Seat Bonding Process from Lear closed out the category.

Envirofibre has the potential to eliminate more than two million pounds of headliner scrap by recycling it into resin material that can be compression molded. The material also improves acoustical properties and is very cost effective. In awarding the Envirofibre first place, one judge said, "Recycling waste will become an increasingly important driver in the next decade."

ElectroBond was viewed by judges as "clever and innovative" ... representing "a new way of thinking about manufacturing." The process bonds seat cover material to foam using an electrical 'mat' that can be used as a seat heater as well. The concept was developed to combine a process and a product to save process time and equipment cost.