Under the terms of the new license, granted by the Mexican Ministry for Communications and Transportation on November 17, 1999, Globalstar de M�xico will be able to bring satellite telephony throughout Mexico, including rural areas currently unserved by cellular or other telephone services, to the mining, construction and oil extraction sectors, and to frequent travelers.

Lauro Gonz�lez, CEO of Globalstar de M�xico, said, "We are very pleased to have been awarded this commercial license by the Mexican authorities, and we are looking forward to initiating Globalstar services in the Mexican market by the end of the year."

Mr. Gonz�lez also noted the upcoming opening of the Globalstar gateway in Mexico, which will receive and process Globalstar calls across M�xico and parts of Central America. "The Globalstar gateway in San Mart�n Texmelucan, Puebla, will be inaugurated in the next few weeks, fulfilling another significant milestone towards provision of Globalstar service worldwide."

Commenting on the announcement, Bernard L. Schwartz, chairman and CEO of Globalstar, said, "Our affordable, easy-to-use system will soon bring telephone service to people and areas of Mexico where land-based systems have been unavailable or economically impractical. We are eagerly looking forward to making this service a reality throughout Mexico in the weeks and months ahead."

Globalstar de M�xico is a joint venture between Mexican telecommunications holding company Principia S.A de C.V., Loral Space & Communications, and Vodafone AirTouch.

The Globalstar system is designed to provide affordable satellite-based digital voice services to a broad range of subscribers and users. Globalstar will meet the needs of residents of under-served markets who will use Globalstar's fixed-site phones to satisfy their needs for basic telephony as well as the needs of cellular users and global travelers who roam outside of cellular coverage areas.

Principia is a leading Mexican telecommunications company that is majority owned by the Autrey family and Mr. Lauro Gonz�lez. In association with Loral Space & Communications and AirTouch Communications, Principia founded Globalstar de M�xico in 1996.

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