Globalstar Introduces Satellite Telephone Service in Russia

August 3, 2000

Globalstar (NASDAQ:GSTRF ), the global mobile telephone service, today introduced commercial service in Russia, bringing wireless telecommunications service to virtually every corner of the country, where many communities have little or no access to basic telephone service. 

GlobalTel, the exclusive provider of Globalstar service in Russia, is initially providing basic telephone services including voice mail and short messaging service (SMS) and will offer fax and data services in early 2001. 

Service is being provided by GlobalTel through its gateway in Moscow, and later this quarter, service to central and eastern Russia will be provided through gateways in Novosibirsk and Khabarovsk, respectively, providing Globalstar service to virtually all portions of the country, from the Baltic Sea to the Pacific Ocean. 

GlobalTel, a partnership led by Rostelecom, will be marketing Globalstar products and services through GlobalTel's regional service providers and distribution network, as well as through GlobalTel's sales office in Moscow. Phone units are being sold at prices starting at US$999, and call rates within Russia range from US$1.19-1.99 per minute. 

``Russia is a market with tremendous business opportunities, by virtue of its massive size and population, and its economic reliance on such vertical markets as maritime, oil and gas, mining and metallurgy, agriculture and forestry,'' said Tony Navarra, president of Globalstar. ``Furthermore, Globalstar's fixed phone units should be a particularly attractive product to the nearly 40,000 communities around the country where cellular or even wireline telephone service is inadequate or simply not available.'' 

In addition to covering nearly all of Russia's vast land areas, Globalstar will provide service up to 200 miles off its coastlines, offering reliable communications services for commercial and private maritime vessels as they travel outside the coverage of traditional cellular and radio services. 

Globalstar, led by founding partner Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including co-founder Qualcomm Incorporated, Alenia, China Telecom (HK), DACOM, DaimlerChrysler Aerospace, Elsacom (a Finmeccanica Company), Hyundai, TE.SA.M (a France Telecom/Alcatel company), Space Systems/Loral, and Vodafone AirTouch. For more information, visit Globalstar's web site at www.globalstar.com 

Loral Space & Communications (NYSE:LOR - news) is the managing partner and, at 38 percent, is the largest equity owner of Globalstar. Loral is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services, and international direct-to-home satellite services. For more information, visit Loral's web site at www.loral.com. 

Rostelekom, a publicly owned domestic and international telecommunications company, was created in September 1993 and is Russia's largest national operator offering domestic and international communications. In January 1994, the Russian Ministry of Communications issued Rostelekom a license to offer domestic and international telecommunications services throughout the entire territory of the Russian Federation. 

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