| News For Immediate Release |
| Contacts: John Cunningham, Globalstar (+1.408.933.4434) Halima Waly, L.P. Elsacom (+39.06.872.75256 or waly@elsacom.finmeccanica.it) Carlo Fornaro, Omnitel (+39.06.500.65809 or carlo.fornaro@omnitel.it) |
Globalstar Partner Elsacom Signs Italian Distribution Agreement with Omnitel to Provide Services in Italy
MILAN, Italy - December 3, 1998-- Globalstar (NASDAQ:GSTRF) today announced that founding partner Elsacom, an Elsag Bailey/Finmeccanica company, has signed an agreement with Omnitel for the distribution of Globalstar services in Italy, one of the largest mobile telephone markets in Europe. Omnitel will offer the Globalstar satellite extension of GSM coverage to Italian cellular customers.
Omnitel will offer Globalstar-GSM services in Italy in the third quarter of 1999, providing cross-standard and worldwide coverage to Omnitel Globalstar subscribers. These subscribers will be able to keep their own SIM card and phone number, and will have the same range of GSM features and services that are available via todayis GSM handsets - such as voice-mail, multi-party calling, call forwarding, and other features.
For subscribers, the ability to use GSM service where it is available and Globalstar services in the areas where GSM coverage is not available, will mean added flexibility and coverage, and a substantial reduction in the cost of current satellite telephony services. Furthermore, given Globalstaris system design and cost structure, the cost of handsets and the airtime tariff will be very competitive compared to other satellite systems.
"We are very pleased with this agreement, which enables us to distribute the Globalstar services on a national basis," said Luigi Gasparollo, Elsacom general manager. "This distribution agreement, in one of the most important European markets, represents a milestone for Elsacom's development. We shall introduce Globalstar satellite services in 24 European countries through distribution agreements with a number of European GSM operators."
Vittorio Colao, Omnitel general manager, added, "This agreement completes our service offering by granting our customers global coverage via high-quality, low-cost service, without modifying the current structure of Omnitelis other commercial offerings. We believe that Italian corporate and business users will be the primary beneficiaries of this new global service, and that the satellite/GSM integration will round out and complete our portfolio of wireless services."
The Globalstar system, comprising 48 low-earth-orbit (LEO) satellites and a global network of ground stations, will allow people around the world to make or receive calls using hand-held, vehicle-mounted and fixed-site terminals. Globalstar will also provide data transmission, messaging, facsimile and position location services. Globalstar currently has eight satellites in orbit and plans to initiate commercial services around the world with a minimum of 32 satellites by the third quarter of 1999. Globalstar now has service provider agreements in 117 countries, covering most of Globalstar's business plan. Five Globalstar gateways are being used to control and test the satellite system, and site work and construction is underway at 20 more gateway sites around the world.
Globalstar, led by Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including Qualcomm Incorporated, AirTouch Communications, Alcatel, Alenia, China Telecom (Hong Kong), DACOM, Daimler-Benz Aerospace, Elsacom, France Telecom, Hyundai, Space Systems/Loral and Vodafone. For more information, visit Globalstar's web site at http://www.globalstar.com.
Omnitel is the third largest GSM operator in Europe. It has more than five million subscribers and has already achieved roaming agreements with more than 88 operators in 60 countries worldwide. Omnitel is one of the worldis fastest revenue-making wireless start ups and Italyis first completely private cellular operator. For more information, visit Omnitel's website at http://www.omnitel.it/.
Elsacom, a unit of Elsag Bailey/Finmeccanica, operates internationally and offers fixed and mobile satellite communication services. Elsacom, in conjunction with some of the worldis premier telecommunication operators and equipment providers such as AirTouch (USA), TE.SA.M. (France Telecom-Alcatel), Alenia Aerospazio (Finmeccanica), Dacom (Korea), Vodafone (UK) and Space Systems/Loral (USA), is one of the strategic partners of the Globalstar project. Furthermore, Elsacom is a Globalstar exclusive service provider in 24 countries in Western and Eastern Europe. For more information, visit Elsacom's website at http://www.elsacom.it/.
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