MILPITAS, Calif., Jan. 2, 2008 (PRIME NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments, and individuals, today announced that it has signed an agreement with Loral Space & Communications Inc. and various affiliated entities to purchase the Brazilian Globalstar independent gateway operator, which owns and operates three satellite gateway ground stations in Brazil. The purchase price of $6.5 million will be paid principally in Globalstar common stock.
A Globalstar subsidiary will own and operate the Brazilian gateways, which along with the Globalstar satellite constellation provide mobile satellite voice and data services to all of Brazil as well as hundreds of kilometers off the country's east coast in the Atlantic maritime region. The transaction will provide Globalstar with direct access to an estimated market of approximately 200 million people for its satellite voice and integrated Duplex and Simplex data products, including the Globalstar subsidiary product, the SPOT Satellite Messenger.
"This acquisition of the gateway operations and retail Globalstar business in Brazil will allow us to apply our experience in Venezuela and Central America to enhance the capabilities of the Brazilian service area," said Jay Monroe, Chairman and CEO of Globalstar, Inc. Mr. Monroe added, "Conversely, the transaction also provides us with the capability to adapt the customized solutions developed for the Brazilian market into our other markets around the world. Today's announcement is part of our ongoing strategy of expanding and improving Globalstar's service offerings for international customers roaming in the region as well as domestic users in Brazil."
Globalstar has experienced regional demand for its satellite voice and data services by commercial transportation and maritime customers and those looking for remote rural telephone service capability. The closing of the acquisition is contingent on obtaining approval of the Brazilian telecommunications agency and on a registration statement for the shares of stock issued as consideration in the transaction being declared effective by the Securities and Exchange Commission.
About Globalstar, Inc.
With over 285,000 activated satellite voice and data units, Globalstar offers satellite services to commercial and recreational users in more than 120 countries around the world. The Company's voice and data products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, "The transaction will provide Globalstar with direct access to an estimated market of approximately 200 million people for its satellite voice and integrated Duplex and Simplex data products including the Globalstar subsidiary product, the SPOT Satellite Messenger," that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Globalstar's control, including demand for the Company's products and services; problems relating to the construction, launch or in-orbit performance of its existing and future satellites, problems relating to the ground-based facilities operated by it or by independent gateway operators; its ability to attract sufficient additional funding if needed to meet its future capital requirements; competition and its competitiveness vis-a-vis other providers of satellite and ground-based communications products and services; the pace and effects of industry consolidation; the continued availability of launch insurance on commercially reasonable terms, and the effects of any insurance exclusions; changes in technology; its ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the Company undertakes no obligation to update any such statements. Additional information on factors that could influence Globalstar's financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.