Globalstar USA to the Rescue of Iridium Customers Left Holding the Phone; Distributors Offer Trade-in Rebates for Iridium Phones - Company Business and Marketing

Cambridge Telcom Report, March 20, 2000

Globalstar USA, a subsidiary of Vodafone AirTouch plc (NYSE:VOD), Thursday announced several of its distributors are offering Globalstar phone rebates for Iridium customers whose service may be discontinued in the near future.

Iridium customers were notified by Motorola last week that their service could be discontinued as early as 11:59 p.m. EST on March 17 if a qualified buyer could not be found before that time.

"Motorola has suggested Globalstar as an alternative solution to their Iridium customers for their communications needs," said Mike Kerr, general manager and vice president of Globalstar USA.

"Globalstar USA offers a hand-held satellite solution and is supporting distribution channels with incentives for Iridium customers. Our new and existing customers can be assured that we have built a system that will reliably serve their evolving needs, and keep them connected in more and more places as the service continues to be introduced in additional countries."

-- GMPCS, a Globalstar USA reseller, has designed two incentives to convert Iridium customers. The first plan offers a $295 trade-in rebate toward the purchase of a new Globalstar phone. The second plan offers a $495 trade-in rebate toward the purchase of a new Globalstar phone with a car kit. For more information, go to www.gmpcs-us.com or call 954/973-3100.

-- Norsat, a Globalstar USA reseller, is offering a $300 rebate toward Globalstar equipment to all Iridium subscribers. For more information call 877/611-5511.

-- ICC Public Communication Systems, Inc., a Globalstar USA agent, is offering two plans to convert Iridium customers. The first plan offers a $500 rebate with activation of the Beyond Borders Plan 100 and copy of last Iridium bill. The second plan offers a $300 rebate with activation of the Beyond Basic Plan and copy of last Iridium bill. For more information, go to www.skyplus.icc.com or call 888/222-6616.

-- visit the Globalstar USA web site for other distributor rebate programs at www.globalstarusa.com.

Globalstar USA, which recently announced full commercial availability of its mobile satellite service in the United States, provides seamless voice service throughout North America, with roaming service currently in place in Canada and Mexico. Additional international roaming will begin next month in Brazil and continental Europe.

Availability

Individuals and businesses can purchase a Globalstar phone and service through Globalstar USA's distributors located throughout the United States. For a dealer nearest you, call Globalstar USA at 877/SATPHONE (877/728-7466), or visit Globalstar USA's web site at www.globalstarusa.com.

The Globalstar tri-mode phone is a portable hand-held unit that operates in satellite mode, but also in digital and analog cellular modes, wherever cellular service is available. The handset can easily be switched from mode to mode. The Globalstar hand-held phone weighs slightly more than 11 ounces, with a suggested retail price of $1,500.

The hands-free car kit is designed for use in conjunction with the Globalstar tri-mode portable phone. This unit, which retails for $999, is especially useful in industries such as mining, farming, utilities, forestry, transportation and search and rescue.

The fixed satellite phone, which can be mounted on a wall or placed on a table or desk, is designed for use in rural or remote areas where population densities cannot justify the deployment cost of conventional landline or terrestrial-based wireless networks. The fixed phone will cost approximately $2,499.

Voicemail will be available to customers in April. Data capabilities at 9.6 kbps including e-mail, fax and file transfer, as well as short message service (SMS), will be available later in 2000.

Globalstar USA (GUSA), an indirect Vodafone AirTouch Plc. subsidiary, has exclusive rights to sell Globalstar satellite service in the United States and is responsible for building the satellite gateways, interconnecting with the public phone network, development and management of billing and customer care systems, sales, product distribution and marketing. For more information visit Globalstar USA's website at www.globalstarusa.com.

Globalstar service is already available in 27 countries. Globalstar is planning to introduce service in over 80 countries by mid-year. Globalstar has announced that one of its founding service partners, TE.SA.M. (Telecommunications par Satellites Mobiles), on Feb. 18 officially opened the newest Globalstar gateway in Los Velasquez, Venezuela, bringing the total number of fully operational gateways to thirteen.

Globalstar L.P., led by founding partner Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including Qualcomm Incorporated, Alcatel, Alenia, China Telecom (HK), DACOM, DaimlerChrysler Aerospace, Elsacom (a Finmeccanica company), France Telecom, Hyundai, Space Systems/Loral and Vodafone AirTouch Plc. For more information, visit Globalstar's web site at www.globalstar.com.