COVINGTON, La., Jan. 23, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), today announced that it has signed a letter of intent with Shahad Al Sahra Trading Est. (SAS), for SAS's ownership and operation of a satellite gateway ground station located in Saudi Arabia and the establishment of a Satellite Services Agreement.
The gateway, which is already constructed, will provide Globalstar mobile satellite voice and data services to all of Saudi Arabia and throughout parts of the surrounding Middle East region. The transaction would also provide SAS as the independent service provider, with access to one of the world's largest remote petrochemical exploration markets.
"As we complete our satellite launches and deploy our new second-generation constellation, we expect to expand our market opportunities both domestically and abroad," said Jim Mandala, VP of International Sales for Globalstar, Inc. "With the deployment of our new constellation, 2012 is a turnaround year for Globalstar. We expect today's announcement to be simply the first in a series of product and network initiatives designed to raise Globalstar to the preeminent position as the global leader in the mobile satellite services marketplace."
Globalstar and SAS expect to enter into definitive agreements in the near future and request the necessary licensing approvals from the Saudi Arabian telecommunication regulatory authority.
Globalstar is the first mobile satellite service provider to launch a new second-generation constellation of low earth orbit satellites. The Company has contracted with launch services provider Arianespace to conduct four launches of six satellites each. Three of the launches have been successfully completed with the fourth launch expected later this year.
Once the new constellation is deployed, Globalstar expects to provide the world's finest quality mobile satellite voice and fastest mobile satellite handset data services to customers in more than 120 countries. Combined with its affordable suite of consumer retail SPOT products, Globalstar expects to offer the world's most extensive lineup of high quality mobile satellite services to the broadest range of commercial and retail consumer customers around the globe.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT family of mobile satellite consumer products including the SPOT Satellite GPS Messenger™ and flexible airtime 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 consumers. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. All SPOT products described in Globalstar or SPOT LLC press releases are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
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Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, "Once the new constellation is deployed, Globalstar expects to provide the world's finest quality mobile satellite voice and fastest mobile satellite handset data services to customers in more than 120 countries," that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding the Company's ability to develop and expand its business, its anticipated capital spending (including for future satellite procurements and launches), its ability to manage costs, its ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in its industry on the Company and its competitors, its anticipated future revenues, its anticipated financial resources, its expectations about the future operational performance of its satellites (including their projected operational lives), the expected strength of and growth prospects for the Company's existing customers and the markets that it serve, commercial acceptance of its new Simplex products, including its SPOT satellite GPS messenger TM products, problems relating to the ground-based facilities operated by the Company or its independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this release regarding matters that are not historical facts, involve predictions.
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 Globalstar undertakes no obligation to update any such statements. Additional information on factors that could influence the Company'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.