It was scheduled for launch from Cape Canaveral Air Station, Fla., on Sept. 15. A new launch date has not been set. This issue is unrelated to the spacecraft control processor anomalies on three in-orbit HS 601 satellites.

This is the ninth satellite in the series of UHF satellites built by Hughes for the U.S. Navy. The HS 601 model satellite had successfully completed most of its testing. However, during an inspection at the Hughes factory in Los Angeles, it was determined that the workmanship on the installation of a capacitor in the communications payload did not meet Hughes' high standards. The capacitor is being replaced as a conservative measure to ensure full mission life success, and the rework time will delay the launch.

UHF satellites F2 through F8 in orbit are fully operational. UHF F1 is functional, yet in a unusable orbit due to a launch vehicle failure. The satellites transmit to small, mobile, tactical terminals. Satellites F8, F9 and F10 carry a Global Broadcast Service (GBS) payload. The GBS capability provides high-speed, wideband, simplex broadcast signals to the warfighter.

A unit of Hughes Electronics Corporation, Hughes Space and Communications Company is the world's leading manufacturer of geosynchronous commercial communications satellites and is also a major supplier of spacecraft and scientific instruments to the U.S. government, and builder of weather satellites for the United States and Japan. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.