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OTTAWA, January 7, 2004 - C-COM Satellite Systems Inc. (TSXV: CMI) has signed a memorandum of understanding with ShowNet, a Kuwait-based reseller of DIRECWAY® satellite services, to distribute the C-COM-developed, self-pointing iNetVu™ mobile antenna platform across the Middle East.

ShowNet, with offices in the U.K., Middle East and Levant region, is an Hughes Network Systems Europe (HNSE) value-added reseller (VAR) of DIRECWAY broadband satellite services in the Middle East. C-COM will be working along side ShowNet to deliver the iNetVu 1200 mobile antenna systems to ShowNet customers using DIRECWAY services in the Middle East. ShowNet will be providing local first- and second-level technical support to iNetVu mobile customers along with installation and training.

The iNetVu 1200 self-pointing antenna system will be demonstrated for the first time in the Middle East by C-COM and ShowNet at the Canadian Pavilion (Stand # 504) at the Rebuild Iraq 2004 International Trade Exhibition to be held on January 19th - 23rd in Mishref - Kuwait.

Dr. Mohsen Sanai, President and CEO of ShowNet, said, "As one of the most successful distributors of HNS' DIRECWAY service, we are extremely pleased to have been selected by C-COM to offer their state-of-the-art mobile systems to our vast customer base in the Middle East. Our joint customers will now have the opportunity to meet their mission-critical needs quickly and at affordable prices."

Dr. Sanai continued, "ShowNet customers currently include universities, ministries, banks, and reputable corporate organizations that are setting up operations in the Middle East, especially in Iraq. Our collaboration with C-COM brings together the highly reliable resources and extensive technical expertise of our two companies. Integration of C-COM's unique solution with our 2 WayInternet® service will enable us to offer secure Internet communications regardless of location, terrain, or terrestrial network build out. This collaboration greatly increases our potential as the outstanding service provider of Internet solutions in the region."

"C-COM is very pleased to join forces with ShowNet and Hughes Network Systems to deliver iNetVu 1200- based DIRECWAY services to the Middle East. We expect to ship a large number of iNetVu 1200-based antenna systems to the region as a result of this cooperation. C-COM and ShowNet will be able to deliver a seamless single source solution to all customers in the Middle East looking for a reliable, high-speed, two-way satellite-based mobile Internet solution.

In addition to delivering data, the iNetVu mobile antenna system will also be able to offer high-quality voice over IP (VoIP) solutions to ShowNet customers from any location they can drive to," said Leslie Klein, President and CEO of C-COM Satellite Systems Inc.


About ShowNet Internet Solutions Ltd.
ShowNet Internet Solutions Ltd. is a forward-looking, high-profile Internet company that provides a multitude of Internet-related services to its clientele by utilizing cutting edge high-speed satellite technology. ShowNet is a leading value-added reseller of DIRECWAY® broadband satellite services and products from Hughes Network Systems, Inc. (HNS) under the brand name of 2 WayInternet ®.

ShowNet also owns and operates a one-way satellite Internet platform broadcast from Nilesat. The ShowNet Network Operations Centre (SNOC) is located in central London, allowing ample access to the extensive European and intercontinental digital communications network made available to only premier multimedia and telecommunication companies. SNOC is peered with both the British Telecom (BT) and MCI Worldcom networks and has a dedicated backbone link from BT through two completely independent and redundant Gold Flex fiber optic links. More information is available at www.show-net.net.

About C-COM Satellite Systems, Inc.
C-COM Satellite Systems, Inc. is a leading value-added provider of DIRECWAY® broadband satellite services and products from Hughes Network Systems, Inc. (HNS). iNetVu™, developed and marketed by
C-COM worldwide, is a unique self-pointing antenna system that can be readily mounted on vehicles to provide mobile, high-speed Internet access utilizing DIRECWAY's two-way broadband satellite terminals and service. C-COM's satellite-based products and services deliver high-quality, cost-effective solutions for both fixed and mobile applications throughout Canada, the United States, the Caribbean, Europe, Australia, Mexico, Central America and the Middle East. More information is available at www.c-comsat.com.

About Hughes Network Systems
Hughes Network Systems, Inc. (HNS) is the world's leading provider of broadband satellite network solutions for businesses and consumers, with more than 600,000 systems ordered or shipped to customers in 85 countries. HNS pioneered the development of high-speed satellite Internet access services, which it markets globally under the DIRECWAY® brand. In addition, HNS is a leading manufacturer of DIRECTV® satellite television receivers, having shipped more than 14 million to date.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, HNS maintains sales and support offices worldwide. HNS is a wholly owned subsidiary of Hughes Electronics Corporation (HUGHES). HUGHES (NYSE:HS) is 34 percent owned by Fox Entertainment Group, which is approximately 82 percent owned by News Corporation Ltd. More information is available at www.hns.com.

About Hughes Network Systems Europe
Hughes Network Systems Europe (HNSE) is Hughes Network Systems, Inc.'s (HNS) operating and sales organization for the European market. HNSE has facilities in Italy, the United Kingdom, Germany, and the Czech Republic. Utilizing its satellite hub earth stations and network operations centers in Griesheim, Germany and Milton Keynes, U.K., HNSE provides DIRECWAY® broadband satellite services throughout the continent, both directly and through a growing family of value-added service providers.

HNSE is the leading European provider of high-speed broadband Internet access and intranet/extranet managed solutions to enterprises of any size and is a leading provider of broadband connectivity to Wi-Fi hot spots. Its customer base spans all major market sectors, including oil and gas, retail, automotive, banking, restaurants and governments, with more than 38,000 terminals ordered or shipped. More information is available at www.hnseu.com.


iNetVu is a registered trademark of C-COM Satellite Systems Inc.
2WayInternet is a registered trademark of ShowNet Internet Solutions Ltd.
HUGHES, Hughes Network Systems and DIRECWAY are registered trademarks of Hughes Electronics Corporation.
DIRECTV is a registered trademark of DIRECTV, Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.




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