Satellite network fully operational and operating well with high rates of call retention and completion

Globalstar Canada, a leading provider of
satellite-based mobile communications, confirmed it is business as usual and
there will be no impact to customers at this time as a result of today’s
announcement that Globalstar LP, the operator of the Globalstar satellite
network and service provider to Globalstar Canada, which is responsible for
deploying and maintaining the Globalstar satellite network, has filed Chapter
11 bankruptcy protection as part of a planned restructuring initiative.

“Our network and services will continue to be fully operational and there
will be no interruption of service or support for customers,” said Peter
White, general manager of Globalstar Canada. “U.S. Chapter 11 bankruptcy laws
enable companies to restructure themselves while continuing business
operations and many companies have re-emerged from Chapter 11 as successful
companies. We are very confident about the future and, by restructuring the
debt, Globalstar will be well positioned for long term growth and success.”

White adds that Globalstar’s success in Canada confirms the vision for
the service.

“Globalstar Canada is having tremendous success in the Canadian market
and customer interest continues to grow,” said White. “We are experiencing
heavy usage by our customers and we have surpassed our own projections for
customer airtime usage and customer adoption of the technology.”

Globalstar Canada currently services more than 2,500 companies and
organizations in Canada and services a wide variety of needs with all layers
of government within Canada. Since its launch in February 2000, Globalstar
Canada has secured very strong market penetration in every single vertical
market in Canada.

Globalstar Canada offers a full range of products, services and support
to Canadian customers and continues to generate new sales in Canada. Handsets
and other equipment are widely available through Globalstar’s network of 275
dealers across Canada.

As a service provider of Globalstar LP, Globalstar Canada is responsible
for offering service and support to the Canadian market. Globalstar Canada has
no financial liability related to the issues facing Globalstar LP nor does it
have any of the debt issues facing Globalstar LP.

About Globalstar

Globalstar service is already available in more than 100 countries. The
Globalstar 48 low-earth-orbit (LEO) satellite constellation and land-based
gateways are designed to provide service to more than 85 percent of the
world’s populated areas. Currently, there are 25 gateways in operation around
the globe including the High River, Alberta gateway, which covers Western
Canada and the Northwestern United States and the Smith Falls, Ontario
gateway, which covers Eastern Canada and the Northeastern United States. The
Globalstar satellite system acts like a mirror to reflect a satellite call
back to the nearest gateway and route that call through Canada’s public switch
network and to the call recipient, with minimal processing by the satellite.
This architecture delivers superior voice quality, minimizes the chances of
dropped calls, enhances security and makes system maintenance and upgrades
easier and economical.

Globalstar, led by founding partner Loral Space & Communications, is a
partnership of the world’s leading telecommunications service providers and
equipment manufacturers. Globalstar partners include co-founder Qualcomm,
Vodafone PLC, along with Alenia Aerospazio (a Finmeccanica company), France
Telecom, Alcatel, DaimlerChrysler Aerospace, and Hyundai. For more
information, visit Globalstar’s web site at www.globalstar.com.

Globalstar Canada is a partnership of Canadian Satellite Communications
(Cancom), Loral Space & Communications and Globalstar Corporation. Globalstar
Canada will be supplying Globalstar services to Canadian and worldwide
subscribers through earth station gateways located in Smiths Falls, Ontario
and High River, Alberta. For more information, visit Globalstar’s web site at
www.globalstar.ca or phone 1-877-452-5782.