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The following information is provided to assist you in determining your tax basis in your GM common stock and your Raytheon Class A Common Stock, but is not intended as tax advice.

Generally, the U.S. federal tax law requires that the tax basis in your old GM common stock be allocated between your GM common stock and the Class A Common Stock you received in the Hughes Defense Spin-Off. This allocation is based on the relative fair market value immediately after the Hughes Defense Spin-Off of your GM common stock and the Class A Common Stock you received. The tax basis in your old GM common stock after the Hughes Defense Spin-Off will generally be equal to the tax basis of your stock immediately before the Hughes Defense Spin-Off, reduced by the amount of tax basis allocated to your Class A Common Stock.

You and your tax advisor may find the information in the following tables useful in connection with the allocation of your tax basis in your old GM common stock between your Class A Common Stock and your GM common stock.

The new GM Class H Common Stock traded separately from the Class A Common Stock for the first time on December 18, 1997, while the GM $1-2/3 Common Stock did not trade separately from the Class A Common Stock until December 19, 1997 (i.e., the price of GM $1-2/3 Common Stock included the value of the Class A Common Stock until December 19). Under the distribution ratio for the Hughes Defense Spin-Off, Class H stockholders received 0.56240 shares of Class A Common Stock for each share of GM Class H Common Stock. New York Stock Exchange composite prices for December 18, 1997 were as follows:

The GM $1-2/3 Common Stock traded separately from the Class A Common Stock for the first time on December 19, 1997. Under the distribution ratio for the Hughes Defense Spin-Off, GM $1-2/3 stockholders received 0.06377 shares of Class A Common Stock for each share of GM $1-2/3 Common Stock. New York Stock Exchange composite prices for December 19, 1997 were as follows:

The tax law does not clearly address how tax basis should be allocated by stockholders who own two or more blocks of stock. For more information about how to determine the tax basis in your stock, see pages 95-97 of the Solicitation Statement/Prospectus that you received prior to the Hughes Defense Spin-Off. We encourage you to consult with your own tax advisor regarding the tax basis consequences of the Hughes Defense Spin-Off.