Globalstar to Exercise $140.9 Million of Outstanding Warrants

NEW YORK, January 31, 1997 -- Globalstar, L.P. announced today a plan for the exercise of outstanding warrants to purchase 5,316,486 shares of common stock at $26.50 per share. The warrants were issued in April 1996 in connection with the guarantees of a $250 million Globalstar bank credit agreement.

Warrant holders include Loral Space & Communications, Lockheed-Martin, Daimler-Benz Aerospace, QUALCOMM, and Space Systems/Loral. An understanding with the warrant holders has been reached that will result in immediate exercise and prompt registration of the GTL shares for resale.

In order to provide directly to its shareholders the benefit of 1,131,169 warrants owned by GTL, the company will distribute to all of its shareholders a right to purchase one GTL share for each 8.84 shares owned, at an exercise price of $26.50 per share. The exercise of the warrants and the rights will result in Globalstar receiving proceeds of $140.9 million.

GTL will commence the distribution to its shareholders by filing a registration statement with the Securities and Exchange Commission covering the rights and underlying common stock. Thereafter, it will announce a record date and mail materials to its shareholders describing, among other things, the manner in which shareholders may exercise the rights. The rights will not be listed; however, the company expects that shareholders would be able to sell the rights in over the counter transactions.

Globalstar L.P. (NASDAQ: GSTRF), based in San Jose, California, is a limited partnership led by Loral Space & Communications. In addition to co-founder QUALCOMM (NASDAQ: QCOMM) of San Diego, California, the partnership includes 10 of the world's leading telecommunications service providers and satellite equipment manufacturers.

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