Building a new satellite gateway in Alaska will enhance the quality and coverage of Globalstar's current voice and data service offerings for residents and companies with operations in Alaska.

Because of the high concentration of companies in the commercial fishing, forestry, oil and gas and mining industries, Alaska is a high growth region for Globalstar, evidenced by increasing demand for reliable communications services where wireline or traditional wireless services are impractical or impossible.

The Wasilla Gateway is expected to become fully operational by summer, 2006, subject to Federal Communications Commission approval. Eastern and southern portions of Alaska are currently served by a Globalstar gateway in Alberta, Canada.

"Alaska has been a region with huge growth potential for Globalstar ever since we launched commercial service in 1999," said Jay Monroe, Chairman and CEO of Globalstar LLC. "We've seen a consistent upswing in the number of minutes used by companies and individuals in Alaska, and a demand that we expand our primary coverage area to cover the majority of the state. Our customer base in Alaska runs the gamut from international shipping firms, to mid-sized commercial fishing operations, to individual users who rely on Globalstar as their primary means of communication. "

"The opening of a Globalstar satellite gateway dedicated specifically to users in and around Alaska is an important improvement in the state's telecommunications infrastructure," said Nate Morton, COO, New Horizons Telecom Inc.

"New Horizons has been building telecom infrastructure in Alaska for the past 27 years, and we are well aware of the unique communications challenges faced by companies doing business here. We're pleased to be a part of developing a solution that helps companies meet those challenges."

The project will be completed in three phases. The first phase includes site preparation and construction of satellite antenna bases. The second phase includes construction of the Gateway Operations Control Center. The third phase includes commissioning, testing and commercial launch. Morton noted that as part of the agreement to construct the Wasilla Gateway, Port Graham Development Corporation (PGDC), will assist Globalstar in securing permit approval for Phase II of the project.

PGDC, an Alaska Native Corporation, will be responsible for developing engineering drawings of the facility's electrical, HVAC and interior construction, which are required for submission prior to approval.

The opening of the Wasilla Gateway marks another in a series of investments Globalstar has made over the past 18 months to improve the quality and reach of its service and expand its portfolio of voice and data solutions.

Recent activities have included the opening of the company's 25th satellite gateway in Sebring, Fla. to enhance Globalstar service in the Caribbean, a US $140 million agreement with QUALCOMM for the manufacture of current and next-generation fixed and mobile satellite phones, and the introduction of new satellite data solutions that enable easy and affordable remote asset monitoring.

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