Globalstar Completes $500 Million Bank Financing

Business Wire, August 6, 1999

NEW YORK--(BUSINESS WIRE)--August 6, 1999--

Loral Receives Globalstar Warrants Raising Stake to 45 percent

Globalstar announced today that it has completed a previously announced $500 million credit facility with a group of banks, led by Bank of America, for the build-out of the Globalstar system. The agreement provides for a $100 million three-year revolving credit facility, a $100 million three-year term loan and a $300 million four-year term loan.

The credit facility is guaranteed by two subsidiaries of Loral Space & Communications, the managing general partner and largest equity owner of Globalstar. The guarantee is secured by certain Loral assets, including the Telstar 6 and Telstar 7 satellites. In consideration for the guarantee, Loral received warrants to purchase an aggregate of 3.45 million Globalstar partnership interests (equivalent to approximately 13.8 million shares of common stock of Globalstar Telecommunications Limited) at an exercise price of $91.00 per partnership interest (equivalent to $22.75 per share of GTL common stock, the average of the high and low trading prices of GTL common stock on August 5, 1999).

After giving effect to the issuance of the warrants, Loral's interest in Globalstar on a fully diluted basis increased from 42 percent to 45 percent.

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

Loral Space & Communications (NYSE:LOR) is a high technology company that primarily concentrates on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services, and international direct-to-home satellite services. For more information, visit Loral's web site at www.loral.com.