Globalstar Demonstrates World's First Prototype of Terrestrial System to Supplement Satellite Phones

SAN JOSE, July 18, 2002 - Globalstar, the world's most popular handheld satellite phone service, today expanded the horizons of the mobile satellite phone industry by demonstrating a wireless phone that can use the same radio spectrum to connect to both satellite and terrestrial communications networks. If introduced commercially, this system could further increase the utility of satellite phones while at the same time making far more efficient use of existing radio spectrum. The new technology is generically referred to as Ancillary Terrestrial Component (ATC), a method that allows existing satellite phone spectrum to also be used over dedicated terrestrial networks, with call capacity managed and reallocated, in real time, between satellite and terrestrial networks via a common control center. Calls can be made over either network using the same phone handset, offering users truly universal service over a single phone system. Today, satellite phones provide telephone service in even the most remote locations, but indoor environments and dense urban areas have always posed a challenge, since tall buildings can often block satellite signals. ATC meets this challenge by supplementing satellite service with a ground-based network to provide a 'back-up' signal in and around buildings where satellite signals cannot reach. And by using the same radio frequencies for both systems, scarce wireless spectrum can be much more efficiently used, and re-used, across an entire continent. Globalstar's satellite service today is providing a highly resilient, ubiquitous service that has proven itself during national emergencies such as September 11 and the recent forest fires in the western U.S. where the terrestrial infrastructure was either damaged or simply unavailable. The combination of satellite and terrestrial infrastructure in a single system provides for an attractive solution for public safety and other applications that require dependable communications, both indoors and out, along with universal compatibility, where a single mobile phone unit can connect with virtually any other phone anywhere. 'Other satellite phone companies have talked about ATC, but Globalstar is the only company to have developed this technology into an actual working prototype,' said Olof Lundberg, chairman and CEO of Globalstar. 'Our approach is exceptionally attractive to Public Safety agencies and any wireless service provider who would like to provide truly nationwide coverage with high reliability.' Demonstrations of Globalstar's ATC system are being conducted today in Washington D.C., with similar demonstrations to be held next week in New York. The demonstrations employ Telit Model 650 Globalstar phones that have been modified to use Globalstar's existing satellite spectrum for cellular calls. The Model 650 is a second-generation Globalstar phone that is fully one-third smaller than earlier Globalstar phones.

The U.S. Federal Communications Commission recently granted Globalstar a license to allow the use of existing mobile satellite service (MSS) spectrum for experimental ATC use, and the Commission is currently evaluating the full commercial use of ATC in both current and next-generation MSS spectrum.