General Motors and Hughes in Discussions With News Corporation

  DETROIT, May 1 /PRNewswire/ -- General Motors Corp. (NYSE: GM, GMH) and  its subsidiary, Hughes Electronics Corp., stated today that after review by  the board of Hughes and as part of their evaluation of strategic restructuring  alternatives, the GM Board of Directors has authorized proceeding with further  discussions with The News Corporation Limited and Sky Global Networks, Inc., a  subsidiary of News Corporation, regarding a proposal to combine Hughes with  Sky Global.   There can be no assurance that the parties will reach an agreement  regarding such a transaction, or, that if an agreement is reached, any  conditions to the transaction would be satisfied or that a transaction would  be consummated.   Any transaction involving the combination of Hughes and Sky Global would  be subject to a number of conditions, including the approval of the boards of  directors of General Motors, Hughes, News Corporation, and Sky Global, the  preparation, negotiation and execution of definitive agreements, the approval  of the holders of GM's $1-2/3 par value and Class H common stocks, and certain  regulatory requirements.     STATEMENT REGARDING ADDITIONAL INFORMATION THAT MAY BECOME AVAILABLE   If a transaction is to be proposed to GM stockholders, GM would file with  the Securities and Exchange Commission and distribute to its stockholders a  Registration Statement on Form S-4, including a prospectus and proxy/consent  solicitation statement, in connection with any transaction that may result  from these discussions.  Holders of GM $1-2/3 and GM Class H common stocks  would be urged to read these and any other related documents the corporation  may issue.  If and when these documents are filed, they can be obtained for  free at the SEC's website, .  Additional information on how to  obtain these documents from General Motors would be made available to  stockholders if and when a transaction is to occur.  Such documents are not  currently available.   This communication shall not constitute an offer to sell or the  solicitation of an offer to buy, nor shall there be any sale of securities in  any jurisdiction in which such offer, solicitation or sale would be unlawful  prior to registration or qualification under the securities laws of any such  jurisdiction.  No offering of securities shall be made except by means of a  prospectus meeting the requirements of Section 10 of the Securities Act of  1933, as amended.   General Motors, and its directors and executive officers, may be deemed to  be participants in the solicitation of proxies or consents from the holders of  GM $1-2/3 common stock and GM Class H common stock in connection with any  transaction that might be proposed to GM stockholders.  Information about the  directors and executive officers of GM and their ownership of GM stock is set  forth in the proxy statement for GM's 2001 annual meeting of shareholders.  Investors may obtain additional information regarding the interests of such  participants by reading the prospectus and proxy/consent solicitation  statement if and when it becomes available.                     MAKE YOUR OPINION COUNT -  Click Here          SOURCE  General Motors Corporation         (GM GMH)   CO:  General Motors Corporation; Hughes Electronics Corp.; The News    Corporation Limited; Sky Global Networks, Inc.  ST:  Michigan  IN:  AUT CPR  SU:  TNM  
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