Globalstar Buys in Brazil

Globalstar signs agreement to acquire Brazilian satellite gateway operator and service provider

January 2, 2008

1 Min Read

MILPITAS, Calif. -- Globalstar, Inc.(Nasdaq:GSAT), a leading provider of mobile satellite voice and dataservices to businesses, governments, and individuals, today announced thatit has signed an agreement with Loral Space & Communications Inc.and various affiliated entities to purchase the Brazilian Globalstarindependent gateway operator, which owns and operates three satellitegateway ground stations in Brazil. The purchase price of $6.5 million willbe paid principally in Globalstar common stock.

A Globalstar subsidiary will own and operate the Brazilian gateways, whichalong with the Globalstar satellite constellation provide mobile satellitevoice and data services to all of Brazil as well as hundreds of kilometersoff the country's east coast in the Atlantic maritime region. Thetransaction will provide Globalstar with direct access to an estimatedmarket of approximately 200 million people for its satellite voice andintegrated Duplex and Simplex data products, including the Globalstarsubsidiary product, the SPOT Satellite Messenger.

"This acquisition of the gateway operations and retail Globalstar businessin Brazil will allow us to apply our experience in Venezuela and CentralAmerica to enhance the capabilities of the Brazilian service area," said JayMonroe, Chairman and CEO of Globalstar, Inc.Mr. Monroe added, "Conversely, the transaction also provides us with thecapability to adapt the customized solutions developed for the Brazilianmarket into our other markets around the world. Today's announcement is partof our ongoing strategy of expanding and improving Globalstar's serviceofferings for international customers roaming in the region as well asdomestic users in Brazil."

Globalstar Inc. (Nasdaq: GSAT)

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