TerreStar to Construct the World's First Satellite That Can Communicate With a Cell Phone

Space Systems/Loral to Build Powerful Transparency Class Satellite

Reston, Virginia, UNITED STATES

MCLEAN, Va., April 11, 2005 (PRIMEZONE) -- TerreStar Networks Inc. announced that it has commenced physical construction of the TerreStar-1 satellite. The contract for design and development of this powerful transparency class satellite is with Space Systems/Loral (SS/L). Construction is currently well-underway at SS/L's facility in California. TerreStar also added an option that will allow for construction of a second satellite - TerreStar-2.

TerreStar-1, with an antenna almost sixty feet across, will be able to communicate with terrestrial base stations and standard wireless devices. Along with its joint venture partner TMI Communications Inc. (TMI), TerreStar will utilize spectrum re-use to deploy a hybrid network that will provide high quality, cost-effective, seamless wireless services to urban, rural and remote regions of North America. TerreStar will be able to provide economical, fully interoperable, and redundant wireless services by achieving a very high frequency re-use factor over the entire network footprint. TerreStar-1 will be the world's most powerful commercial mobile satellite capable of generating hundreds of spot beams to provide coverage of the fifty United States, Puerto Rico, the U.S. Virgin Islands and Canada.

The TerreStar-1 satellite will operate in a Canadian orbital slot licensed to TMI. The system will be operational by the end of 2008 with a planned service life of fifteen years.

Wharton B. (Zie) Rivers Jr., president and chief executive officer of TerreStar, said "We have been working with SS/L over the last several years and are excited to reach this important milestone. We are confident that this is the partnership that will deliver us through construction to launch of the TerreStar satellite system. Capturing the benefits of an ancillary terrestrial component (ATC), TerreStar-1 will provide innovative, cost-effective wireless services to consumers throughout North America."

About TerreStar Networks Inc.

TerreStar Networks Inc. is an emerging provider of advanced mobile satellite services in North America with plans to develop, build and operate an innovative and spectrum-efficient spot beam satellite network in the 2GHz frequency band.

The TerreStar investor group includes Motient Corporation (Pink Sheets:MNCP), SkyTerra Communications (OTCBB:SKYT), TMI Communications, Columbia Capital, and Spectrum Equity Investors

TerreStar is located in McLean, Va. www.terrestarnetworks.com

About Space Systems/Loral

Space Systems/Loral, a subsidiary of Loral Space & Communications (OTCBB: LRLSQ), is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. Based in Palo Alto, California, the company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L satellites have amassed more than 1,100 years of reliable on-orbit service. SS/L is ISO 9001:2000 certified. For more information, visit www.ssloral.com.

Editor's note: TerreStar satellite image



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