I have put together the following information for you so that you are aware of what is happening today and what is being done to prepare for the future with regard to the Globalstar satellite network. As you may or may not already know, Globalstar’s service has been affected by an issue with a particular part on some of the satellites.

Please read the following so that you can gain insight and plan accordingly. If you have any questions please feel free to contact me anytime. I appreciate your patience as Globalstar transitions to their second generation constellation.
Terry

Globalstar Second Generation Satellite Constellation Update

In December 2006, Globalstar signed a EURO 661 million (approximately $865 million) contract with Thales Alenia Space for the design, manufacture and delivery of 48 new satellites for the second-generation Globalstar satellite constellation, with deliveries scheduled to begin in the summer of 2009. The satellites are being designed to provide service until at least 2025.

In summary, Globalstar is planning to make significant investments of over $1.2 billion to the satellite network all designed to provide the kind of industry leading satellite network performance that has become expected from Globalstar.

Current constellation conditions

Earlier this year Globalstar announced an anomaly in the satellite S-band antenna amplifier affecting service and call quality. A re-configuration of its satellite constellation was performed to facilitate the launch of 8 new satellites into orbit by mid-2007, of which 4 have already been launched. Subscriber's service will continue to be available; however, at certain times in any given location it will take substantially longer to establish calls and the average duration of calls may be impacted adversely. Please note: This anomaly does not affect simplex data operations as simplex data does not use the S-band antenna.

Although Globalstar will continue to provide service on its existing network through the launch of its 2nd Generation satellite system, we expect that users will experience significant gaps in their service. These gaps could become progressively more frequent and longer in 2008 and 2009 and could be 15 minutes or longer depending on user location.

Optimum Availability Tool

Globalstar is continually working to maintain and improve our service to you. Occasionally, you may experience periods when it takes you longer than expected to connect to our system or your call in progress terminates prematurely. To help you plan your communications, we are providing for your convenience a web-based tool that forecasts satellite availability for your location over the upcoming 24-hour period. Please carefully read the advisory information regarding our web-based tool before you use it. To use the tool you must type in a Globalstar phone number.

www.globalstarusa.com/en/optimum_tool

For more information on the Globalstar network, including spare satellite launches and second-generation network development see our recent press releases:
http://www.globalstarusa.com/en/about/newsevents/