Hughes Network Systems and Apollo Group, Inc. Form Worldwide Distance Learning Company

One Touch Systems Acquired as Foundation of New Company

Germantown, MD, August 18, 1998 — Hughes Network Systems (HNS) and Apollo Group, Inc. (Nasdaq:APOL) today announced an agreement to form a worldwide, distance-learning company. This company will be the first company to provide a complete end-to-end, satellite-based, distance-learning solution for enterprises, as well as for small office/home office (SOHO) users and consumers. As its first initiative, the new company has agreed to acquire One Touch Systems, the pioneer and leading supplier of interactive distance learning (IDL) solutions. One Touch already provides IDL systems to large corporate organizations including Ford Motor Company, Hewlett Packard, J.C. Penney, Oracle, the U.S. Social Security Administration, Prudential Insurance, 3M, and others.

HNS is the world’s leading supplier of private satellite networks, as well as high-speed Internet delivery to consumers via its DirecPC^TM service. Apollo is one of the largest providers of higher- education programs, certification, and training in the United States. This teaming of the two leading companies in their respective fields ¾ satellite networking and educational content — is unprecedented.

The formation of the new company is expected to be completed within 30 days. Financial terms were not disclosed, however, HNS will hold a majority ownership position in the new company.

There will be no change in the management of One Touch Systems or the location of its corporate headquarters and remote sales offices.

Integrated Product Offering Enables Complete Distance Learning Solutions

"Our company goal is to extend the benefits of satellite technology and communication into larger and new markets," said Pradman Kaul, president of HNS. "We have worked cooperatively with One Touch in the past to implement distance-learning networks for customers such as Ford. Not only will our existing customers benefit from the new relationship and more integrated solutions, but with the addition of Apollo, we can now offer the world’s most complete distance learning solution — from content development to delivery to implementation."

"Network infrastructure limitations have been major obstacles to corporations offering continuing education to their in-house and remote employees," said John Sperling, chairman and CEO of Apollo Group, Inc. "Integrating our educational content and certification with the One Touch system and Hughes’ satellite capability, allows a total, end-to-end solution never before possible. Initial customer response already has been extremely favorable."

"Up until now, One Touch customers could not go to a single source for educational content, the IDL system, and the network," said Craig A. Conway, president and CEO of One Touch Systems. "But the key to continuing growth and expansion to new markets is the ability to offer a simple, cost-effective, complete solution including both the network and the educational content. With the combined resources of HNS and Apollo, we are now able to do that."

Customer Benefits

The benefits of a totally integrated IDL approach include lower overall costs, a one-stop IDL solution, easier deployment, and a higher-quality learning experience involving a combination of real-time video, voice, and data. The IDL solutions offered can be deployed in classroom environments, as well as directly to desktop PCs. Classes can be delivered live, or via a soon to be available offline, on-demand mode.

Satellite communications continues to be the most cost-effective way to deliver real-time video, voice, and data simultaneously to hundreds or even thousands of remote locations. With HNS’ DirecPC product, high-quality video can now be delivered just as cost effectively, further enhancing the learning experience. And finally, with the introduction of the competencies of Apollo, some of the greatest impediments to an IDL implementation - content and qualified training staff - can be eliminated.

About Hughes Network Systems

A world leader in satellite products and services for more than 25 years, HNS has captured nearly 65 percent of the global private Very Small Aperture Terminal (VSAT) satellite network market and shipped more than 200,000 VSATs. Headquartered in Germantown, MD, near Washington, DC, the company maintains sales and support offices worldwide. HNS offers communications network solutions that include a complete line of integrated satellite and enterprise networking products encompassing VSATs, frame relay, and fixed and mobile wireless networks. HNS is a unit of Hughes Electronics Corporation and an ISO-9001-certified manufacturer. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock. Additional information about HNS can be found on the World Wide Web at http://www.hns.com.

About Apollo Group, Inc.

Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning, Inc., and Western International University, Inc., is one of the largest providers of higher-education programs for working adults in the United States, with total degree-seeking enrollment of approximately 66,800 students. Educational programs and services are currently offered at 112 campuses and learning centers in 32 states, Puerto Rico, and London, England.

The University of Phoenix, one of the largest accredited private universities in the United States, offers graduate and undergraduate degree programs including business, management, information technology, healthcare and counseling. Additional information about Apollo Group, Inc. can be found on the World Wide Web at http://www.apollogrp.com.

About One Touch Systems

Headquartered in San Jose, CA, One Touch Systems is the world’s only provider of IDL solutions that are fully integrated, enterprise wide, and scalable from satellite-enabled classrooms to networked personal computers, with an installed base of 20,000 sites in 55 countries. One Touch’s patented interactive broadcast communications network technology enables individual experts to communicate and collaborate in real time with participants at multiple locations anywhere in the world. UPSIDE magazine, a leading business technology publication read by over 150,000 key executives, recently named One Touch Systems one of the "world’s 100 hottest private technology companies." Additional information about One Touch Systems can be found on the World Wide Web at http://www.onetouch.com.

DirecPC is a trademark of Hughes Network Systems, a unit of Hughes Electronics Corporation.

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements.