With Strong Liquidity and Cash Position, Globalstar Investment of $110 Million Will Launch Satellites to Augment Customer Two-Way Satellite Voice and Data Service Through Launch of Second-Generation Constellation
Globalstar, Inc. (Nasdaq: GSAT – News), a leading provider of mobile satellite voice and data services to businesses, governments, and individuals, announced today that it continues with preparations needed for a May launch of four satellites that will be used to augment the company’s first generation LEO (low earth orbit) satellite constellation. These satellites, together with the additional four ground spare satellites due to be launched later this year, will revitalize the operating constellation and help ensure that the quality of service Globalstar customers have come to expect is maintained through the launch of the second generation satellite constellation. The second-generation satellites are scheduled for delivery beginning in the summer of 2009.
The four Globalstar satellites are to be launched by the Euro-Russian launch services company Starsem (Arianespace, EADS, Roscosmos, Samara Space Center) from the Baikonur Cosmodrome in Kazakhstan, using the highly reliable, human-rated Soyuz launch vehicle. In addition to launching commercial satellite payloads, the Soyuz booster is used to launch astronauts and cosmonauts, as well as Progress cargo spacecraft to the International Space Station. Starsem already successfully launched twenty-four Globalstar satellites with Soyuz in 1999 from Baikonur, the same launch complex used to send the world first artificial satellite Sputnik 1, into space almost fifty years ago.
“Globalstar is investing over $110 million to launch these four satellites plus the remaining four ground spares that will augment two-way voice and data satellite service to our customers through the launch our second generation constellation,” said Jay Monroe, Chairman and CEO of Globalstar, Inc. Mr. Monroe added, “We are very pleased to be working once again with our proven launch provider Starsem as well as the prime contractor for the first generation satellites, Space Systems Loral, and sub-contractor Alcatel Alenia Space. Our strong liquidity position permits us to launch these four first- generation satellites plus the remaining four later this year. It also paved the way for us to begin the manufacture of our second-generation constellation, which is vital in meeting the long term needs of our customers.”
In December 2006, Globalstar signed a EURO 661 million (approximately $865 million) contract with Alcatel Alenia Space for the design, manufacture and delivery of 48 new satellites for the second-generation Globalstar satellite constellation, with deliveries scheduled to begin in the summer of 2009. The satellites are being designed to provide service until at least 2025. Alcatel Alenia Space is completing the necessary tests on the four first generation satellites at its facility in Rome, Italy. The satellites are to be shipped in April to the launch complex in Baikonur for final pre-launch preparations. Alcatel will continue to prepare the second batch of four Globalstar first generation ground spare satellites, also scheduled for launch by Starsem later this year.
About Globalstar, Inc.
With over 250,000 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.
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, “Globalstar investment of $110 million will launch satellites and augment two-way satellite voice and data service through launch of second-generation constellation,” and “these satellites, together with the additional four ground spare satellites due to be launched later this year, will revitalize the operating constellation and help ensure that the quality of service Globalstar customers have come to expect is maintained through the launch of the second generation satellite constellation” that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Globalstar’s control, including demand for the Company’s products and services; problems relating to the construction, launch or in-orbit performance of its existing and future satellites, problems relating to the ground-based facilities operated by it or by independent gateway operators; its ability to attract sufficient additional funding if needed to meet its future capital requirements; competition and its competitiveness vis-a-vis other providers of satellite and ground-based communications products and services; the pace and effects of industry consolidation; the continued availability of launch insurance on commercially reasonable terms, and the effects of any insurance exclusions; changes in technology; its ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the Company undertakes no obligation to update any such statements. Additional information on factors that could influence Globalstar’s financial results is included in its filings with the Securities and Exchange Commission, including its Registration Statement on Form S-1.
