Under the acquisition agreement, Globalstar's business assets will be transferred to the new company, which will operate under the Globalstar brand name.

The transfer of certain assets has already occurred, and the entire process will be completed upon receipt of U.S. regulatory approval, which is expected to take place in the first quarter of 2004. In the meantime, Globalstar's regulated assets will remain with Globalstar, L.P. and will be operated by the new company pursuant to a management agreement.

As a result of the transaction with Thermo, Globalstar service and customer support around the world will continue uninterrupted, and the new company is planning to introduce an accelerated business expansion plan later in 2004.

"This is the beginning of a new, very encouraging chapter for Globalstar," said company president Tony Navarra. "Our working relationship with Thermo has already spanned many months, and as a result, we have been able to rapidly develop with them an outline for an aggressive business plan that will give Globalstar the opportunity to broaden our business and to introduce new products and services in the future."

Today's announcement follows last month's approval by the U.S. Bankruptcy Court in Delaware of the acquisition of the Globalstar business by Thermo. The agreements completed late last week will give Thermo an 81.25% ownership of the new company that will eventually take control of substantially all of Globalstar's assets and operations, in exchange for a cash investment of up to $43 million.

The remaining 18.75% of the equity interests in the new company will be retained by Globalstar for future distribution to its creditors under its bankruptcy plan. Additionally, Globalstar's creditors will have the right to purchase additional equity interests in the new company for an aggregate ownership interest of up to 36.37%.

"Even in the midst of this challenging restructuring process, Globalstar has been able to achieve truly astounding growth, opening up many new markets and more than tripling our subscriber base since our restructuring work first began," Mr. Navarra added.

"With this process now almost complete, we should be able to accelerate our business growth even further, reinforcing the company's leadership in the mobile satellite phone industry."

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