MILPITAS, Calif., Oct. 10 /PRNewswire/ -- Globalstar, Inc., a provider of mobile satellite voice and data services, announced today it has signed a EURO 7.7 million Authorization to Proceed (ATP) agreement with Alcatel Alenia Space for the company's second generation satellite constellation. In addition to engaging Alcatel to conduct a program readiness review and to develop program milestones, the ATP provides that Globalstar and Alcatel Alenia Space will negotiate a definitive contract for Alcatel Alenia Space to construct 48 low-earth-orbit (LEO) satellites for Globalstar's second-generation satellite constellation. The ATP will terminate on the earlier of the signing of a definitive contract and November 15, 2006. In order to secure the company's future space operations, Globalstar has specified that the planned second-generation constellation be designed to operate until at least 2025 and to seamlessly integrate with the company's current constellation of LEO satellites, while providing the space segment necessary to support significantly higher data speeds and other new services to the handheld devices. "We are extremely pleased to be working with Alcatel Alenia Space on an agreement that is so vital for the long term success of Globalstar," said Jay Monroe, Chairman and CEO of Globalstar, Inc. Mr. Monroe added, "This agreement is a crucial first step towards securing the Globalstar space segment and augmenting our present LEO constellation of satellites. Of extreme importance, the new constellation is intended also to provide our customers with long term continuity of service by being fully backwards compatible with our current line of products." Pascale Sourisse, President and CEO of Alcatel Alenia Space commented: "We are very proud that Globalstar has extended its cooperation with us and continues to place its trust in our satellite solutions. This agreement demonstrates our capability to design and build large series of LEO satellites as well as our expertise in providing competitive satellite solutions." Mrs. Sourisse added: "This agreement will involve Alcatel Alenia Space's production sites in France, Italy, Spain and Belgium. It highlights Alcatel Alenia Space worldwide leadership in telecommunications satellite orders for the year 2006." As a contractor for the first generation of Globalstar satellites, Alcatel Alenia Space was responsible for the satellite payloads, structures, as well as satellite integration. The company was also responsible for manufacturing and installing the Globalstar ground segment gateway antenna terminals. About Globalstar, Inc. With over 200,000 activated satellite voice and data units, Globalstar offers high value, high quality satellite services to commercial and recreational users in more than 120 countries around the world. The company's voice and data products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include; oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset tracking, data monitoring and SCADA applications. About Alcatel Alenia Space Alcatel Alenia Space is the European leader in satellite systems and at the forefront of orbital infrastructures. Created in July 2005, the company brings together the vast experience and know-how of Alcatel Space and Alenia Spazio to form a new leading force in European space technology. Alcatel Alenia Space represents a worldwide standard for space development that impacts everybody's future: from navigation to telecommunications, from meteorology to environmental monitoring, from defense to science and observation. Alcatel Alenia Space is an affiliate of Alcatel (Paris: CGEP.PA and NYSE: ALA) (67%) and Finmeccanica (Milan:SIFI.MI, FNC.IM) (33%). DATASOURCE: Globalstar, Inc. CONTACT: Dean Hirasawa of Globalstar, Inc., +1-408-933-4006, or Web site: http://www.globalstar.com/

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