"We see a tremendous potential market for Globalstar satellite services in the North Sea and North Atlantic regions," said Johann F. Kristjansson, general manager of Martel. "Given the similarity of user operation, and its compatibility with GSM systems, we see Globalstar as a sort of Super GSM system that will extend GSM services across Iceland and our other territories, as well as providing quality services for the maritime industry."

Martel will build and operate a gateway in Iceland that will interconnect the Globalstar telephone calls with Iceland's existing telecommunications infrastructure. The company, which has been awarded operating and business licenses by the Icelandic government, will offer specialized services for the maritime and offshore oil services markets. To handle the region's cold and rugged environments, Martel will contract with handset manufacturers and other vendors to develop specially modified user terminals. The modified terminals will feature a position location capability.

"We believe Globalstar is the breakthrough people have been waiting for," said Kristjansson. "It offers the first truly affordable mobile phone that will enable remote users to stay in touch with their offices, families and friends. We believe Globalstar phones will be especially valuable to maritime users - such as fishing fleets - and remote users, particularly as a means to dial 911 or 112 emergency services in the case of an accident or impending disaster. The position location function will also prove to be extremely useful in these circumstances."

Terrestrial and maritime subscribers will use handheld user terminals similar to today's cellular phones, but with dual-mode capability to enable them to switch from satellite telephony to conventional cellular telephony as required. Some Globalstar users in rural and remote areas may make or receive calls through fixed-site telephones, similar either to phone booths or ordinary wireline telephones. Subscriber terminals will communicate through a Globalstar satellite to a gateway, that in turn will connect calls into existing telecommunications networks.

"The addition of Martel fills in an important coverage area for Globalstar," said Doug Dwyre, president of Globalstar. "We will now have ubiquitous coverage of the entire North Atlantic Ocean region - from Newfoundland to the United Kingdom - and throughout the North Sea region - from the United Kingdom to Scandinavia."

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 from nearly every corner of the Earth. In addition to voice services, Globalstar features include narrow-band data transmission and facsimile services. Globalstar, which successfully launched eight satellites earlier this year, expects to initiate service in the third quarter of 1999 with a constellation of at least 32 satellites.

Globalstar now has service provider agreements in more than 100 countries, covering more than 90% of Globalstar's business plan. 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.

Martel Ehf., based in Reykjavik, Iceland, began as a provider of specialized electronics and software services. It then expanded into fleet tracking and maritime satellite communications, capitalizing on new satellite and wireless communications services opportunities. It is committed to developing a variety of data, voice and broadcast services in conjunction with partner and affiliate companies.