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Geneva - October 11, 1999 - Globalstar today marked the official introduction of its mobile and fixed telephone service, which will bring affordable, high-quality telephony service to virtually any place on earth. The satellite-based telecommunications system is initiating a phased roll-out of service in regions of the world covered by its first nine operational gateways, or ground stations. Globalstar initially will provide limited distribution of service to selected individuals during "friendly user" trials in the United States, Canada, Brazil, Argentina, China, Korea, South Africa, and parts of Europe, allowing service providers to make final adjustments and refinements before launching full commercial service over the next few months. During this period, marketing, distribution and customer care systems in these locations will be tested and adjusted based on feedback from early users, assuring high quality service when Globalstar is more broadly introduced around the world in the coming months. "Globalstar and its partners are proud to introduce our satellite telephone service -- priced right, aimed at the right markets, and available through the right local service providers," said Bernard L. Schwartz, chairman and chief executive officer of Globalstar. "Businesspeople, residents of communities in developing countries, and industrial users in distant or offshore locations can now access mobile, affordable telecommunications wherever and whenever they need it. "Globalstar users will also enjoy exceptional call quality," Schwartz continued. "We've conducted exhaustive testing and placed over a million phone calls over the system, ensuring highly reliable service with remarkable voice clarity. And our lightweight, easy-to-use phone units make Globalstar the most convenient satellite phone system ever designed." The Globalstar satellite telephone service uses patented CDMA (code division multiple access) technology tjay increases system capacity and allows each call to be supported by multiple satellites simultaneously, a function currently available only with Globalstar. Thus, if a caller moves out of range of a satellite, the call is seamlessly handed off to another. Globalstar's multi-mode phones may be used in cellular or satellite mode. The phones automatically search for a terrestrial cellular connection where available but switch to satellite mode whenever the user is out of cellular range, effectively expanding the reach of the cellular network. While terrestrial cellular coverage continues to grow around the world, it is estimated that nearly 90% of the earth's surface remains unserved by a cellular network. These areas now will be covered by Globalstar service. Fixed phone units are available for use in communities lacking cellular or wireline service, particularly in developing countries, and at remote business and industrial locations such as mines, petroleum exploration sites, and aboard ocean-going vessels. Globalstar will also offer many of the functions and services familiar to regular cellular users, including call forwarding, voicemail, short messaging service (SMS), and, beginning later in the year 2000, data and fax capabilities. Globalstar service will be available to subscribers through a worldwide network of established, successful telecommunications providers who are experienced at identifying local market needs and requirements. These include industry leaders such as Vodafone AirTouch, TE.SA.M. (a joint venture between France Telecom and Alcatel), Dacom, Elsacom (a Finmeccanica company) and China Telecom.
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