"Taiwan represents an important market and a key ingredient in our strategy to provide satellite-based services throughout Asia and the world," said Mr. Ming Louie, Globalstar vice president of Asia-Pacific business development, at the signing ceremony in Taipei. �The addition of Chunghwa Telecom to Globalstar's worldwide network of service providers brings to 117 the number of countries with service provider agreements, providing Globalstar access to more than 90 percent of its projected 2002 subscriber base of three million.�

"Chunghwa's participation in Globalstar is a natural evolution in its continued commitment to investment in new communications services and technologies," commented Dr. S. C. Lu, president and CEO of Chunghwa Telecom.

Under the service agreement, Chunghwa, the leading telecommunications services provider in Taiwan, will own the sole right to Globalstar services in Taiwan. Chunghwa will also be responsible for the construction and operation of Taiwan's Globalstar gateway.

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 narrow-band data transmission, messaging, and facsimile services.

Some subscribers will use portable phones similar to today's cellular phones, with dual-mode or tri-mode capability so subscribers can switch from conventional analog or digital cellular telephony to satellite telephony as required. Subscribers in rural and remote areas may make or receive calls through fixed-site telephones, similar either to phone booths or ordinary residential and business telephones. Globalstar phones will communicate through a Globalstar satellite to a gateway--or ground station -- that in turn will connect calls into the existing terrestrial telecommunications network. Globalstar currently has eight satellites in orbit and expects to have a minimum of 32 satellites in its constellation to initiate commercial service in the Fall of 1999. Five Globalstar gateways are being used to control and test the satellite system, and site work and construction is under way at 20 more gateway sites around the world. Globalstar plans to start commercial services around the world in the Fall of 1999.

About Chunghwa Telecom
Chunghwa Telecom Co, Ltd., the largest telecommunications services provider in Taiwan, succeeded the Directorate General of Telecommunications (DGT) to perform its services and operations as a state-owned company, while DGT was restructured to act as a regulatory body only. Such reorganization is intended to implement ROC government�s liberalization policies, to upgrade service quality for the rapidly growing demands in local telecom markets, and to explore overseas telecom market niches. As of July 1, 1998, Chunghwa Telecom has 34,747 employees to handle network operations and service marketing for over 16 million subscribers, including fixed telephones, mobile phones, radio paging and internet services.