RESTON, Va., May 11, 2005 (PRIMEZONE) -- Mobile Satellite Ventures (MSV) announced today the closing of a $200 million private placement in its former subsidiary TerreStar Networks Inc. (TerreStar). TerreStar, in partnership with TMI Communications, is one of two FCC licensees in the 2 GHz frequency band planning to develop, build and operate advanced mobile satellite services. Simultaneously with the financing, TerreStar was spun off to MSV's shareholders as a stand-alone company. Following the closing, wireless communications provider Motient Corp. becomes the majority shareholder of TerreStar with an ownership position of nearly 61% of outstanding shares. This financing, together with MSV's $230 million November financing that also resulted in the retirement of all MSV debt, establishes both MSV and TerreStar as independent developers of a new generation of communications services combining satellite ubiquity with terrestrial efficiency. TerreStar holds a license to deploy its network using MSV's unparalleled hybrid network (ATC) patent portfolio.
"This transaction provides huge benefits to both MSV and TerreStar," stated Alexander H. Good, vice chairman and chief executive officer of MSV. "As recently announced, construction of TerreStar's satellite is well underway with Space Systems/Loral. This financing enables TerreStar to continue its satellite and ground system development, while MSV dedicates the proceeds of its November financing to accelerate deployment of its next generation L-Band system. It is a win-win situation all around, not only for both companies, but also for the public interest through provision of innovative, cost-effective wireless services to consumers throughout North America."
About Mobile Satellite Ventures
Mobile Satellite Ventures is developing the next generation hybrid wireless network that will use a powerful satellite constellation working in unison with MSV's patented ancillary terrestrial component (ATC) technology to deliver seamless wireless services to end-users over standard wireless devices.
MSV is North America's premier provider of mobile satellite communications. Delivering service since 1996, MSV offers customers a wide choice of wireless data, voice, fax and dispatch radio services via its two MSAT satellites. MSV provides superior capacity and reliability for customers across North America, northern South America, Central America, the Caribbean, Hawaii and in coastal waters.
The MSV investor group includes Motient Corporation (Pink Sheets:MNCP), SkyTerra Communications (OTCBB:SKYT), TMI Communications, Columbia Capital, and Spectrum Equity Investors.
MSV has offices in Reston, Va., and Ottawa, On. For more information, visit MSV online at www.msvlp.com.