MILPITAS, Calif., March 26, 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 closed the transaction 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 closing had been contingent on a registration statement for the shares of stock issued as consideration in the transaction being declared effective by the United States Securities and Exchange Commission.
Earlier this year Globalstar received the necessary Agencia Nacional de Telecomunicacoes (ANATEL) regulatory approval. The acquisition paves the way for Globalstar to immediately expand its Simplex data coverage in South America and engage in discussions with potential partners to provide ancillary terrestrial component or ATC-type services in Brazil.
Globalstar will immediately begin managing the Brazilian business and the three gateways located in Brazil. Globalstar has begun installing Simplex data hardware at the gateway located in Petrolina, Brazil. The hardware will permit Globalstar to expand its Simplex data coverage throughout Brazil, into parts of Northeastern Argentina and the nearby Atlantic coastal maritime region. With this expansion Globalstar will be able to offer its customers seamless simplex data coverage in North and South America, stretching from Alaska south to Argentina.
About Globalstar, Inc.
Globalstar offers satellite voice and data services to commercial and recreational users in more than 120 countries around the world. The Company's 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 and personal 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 acquisition paves the way for Globalstar to immediately expand its Simplex data coverage in South America and engage in discussions with potential partners to provide ancillary terrestrial component or ATC-type services in Brazil," 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.