Globalstar Signs Second-Generation Ground Core Network System Agreement With Ericsson

Contract Provides Globalstar With Telephony and Internet Access For Next-Generation of Advanced Satellite Services


MILPITAS, Calif., Oct. 16, 2008 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), the world's largest provider of mobile satellite voice and data services to businesses, governments and individuals, today announced it has signed an agreement with Ericsson Federal Inc., a leading global provider of technology and services to telecom operators. According to the $22.7 million contract, Ericsson will work with Globalstar to develop, implement and maintain a ground interface or core network system that will be installed at Globalstar's satellite gateway ground stations. The all Internet protocol (IP) based core network system is wireless 3G/4G compatible and will link the Globalstar radio access network to the public-switched telephone network (PSTN) and/or Internet. Design of the new core network system is now underway.

The agreement represents the final significant ground network infrastructure component for Globalstar's next-generation of advanced IP-based satellite voice and data services.

"We are extremely pleased to embark on this new relationship with a world class company like Ericsson," said Tom Colby, Chief Operating Officer for Globalstar, Inc. Mr. Colby added, "Ericsson was able to combine the best technical approach and efficient implementation while meeting our expenditure and operational requirements. Their worldwide presence and leadership, their familiarity with our radio access network contractor Hughes Network Systems, plus their global experience operating in the countries where we have Globalstar gateway ground stations all combined for a unique core-system network solution."

"Ericsson is proud to be deploying our IMS-based core network solution to help deliver next-generation advanced services to Globalstar's customers," said Douglas Smith, President, Ericsson Federal. "We believe that our leadership position in the area of IMS will enable Globalstar to simplify the delivery of services such as VOIP, Push-to-Talk and Messaging across all access technologies as they migrate to an all IP-network."

Globalstar is now expected to turn its attention towards the design and development of its third-generation handsets, satellite machine to machine (M2M) devices and other terminals. The new ground network architecture is designed to support speeds of up to 1Mbps to the subscriber equipment and up to 256 Kbps to the satellites in a flexible all IP configuration. Services supported would include push to talk and multicasting, advanced messaging capabilities such as multimedia messaging or MMS, and mobile video applications and geolocation services. Subscriber terminal or handset considerations include smaller form factor designs with multi-band and multi-mode capability, GPS integration, as well as fixed phone, video units and car kits. New services and equipment will be backward compatible for current Globalstar subscribers.

About Globalstar, Inc.

With over 300,000 subscribers, Globalstar is the world's largest provider of mobile satellite voice and data services. Globalstar offers these 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

About Ericsson

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.

For more information, visit www.ericsson.com or www.ericsson.mobi.

Safe Harbor Language for Globalstar Releases

This press release contains certain statements such as, "Globalstar is now expected to turn its attention towards the design and development of its third-generation handsets, satellite machine to machine (M2M) devices and other terminals," 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 our control, including demand for our products and services, including commercial acceptance of our new Simplex products, including our SPOT Satellite Messenger product, and the ability to retain and migrate our two-way communications services subscribers to our second-generation constellation when it is deployed; problems relating to the construction, launch or in-orbit performance of our existing and future satellites; including the effects of the degrading ability of our first-generation satellite constellation to support two-way communication; problems relating to the ground-based facilities operated by us or by independent gateway operators; our ability to attract sufficient additional funding to meet our future capital requirements including deployment of our second-generation constellation; 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; our 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 we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.



            

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