Globalstar, the world’s most
widely-used handheld satellite phone service, has reached a preliminary
agreement with a group of five lenders, who will provide interim
debtor-in-possession (DIP) financing to Globalstar, subject to court approval.

Under the terms of the agreement, the consortium of five lenders will make
a total of $10 million available to Globalstar, giving the company necessary
working capital while it moves toward a final restructuring plan that would
allow it to emerge from Chapter 11 protection later this year. The five
lenders providing the DIP financing are: Blue River Capital LLC; Columbia
Ventures Corporation; ICO Investment Corp.; Iridium Investors, LLC; and Loeb
Partners Corp. Three of the lenders are members of the Official Committee of
Unsecured Creditors of Globalstar.

“The recent ruling by the FCC, allowing us to implement an integrated
satellite and terrestrial wireless system in the future, was a significant
development for our business,” said Olof Lundberg, chairman of Globalstar.
“We believe that this ruling, together with our record of continuing growth
despite challenging circumstances, has helped to attract the interest of
potential new investors, and that this new financing agreement will be an
important step toward our successful emergence from bankruptcy.

“This DIP financing will give us time to initiate an efficient,
transparent process for seeking the best final offer for ultimate ownership of
our business. This will help to assure that we maximize value for our
stakeholders and provide the strongest possible platform for the new
Globalstar,” Mr. Lundberg added.

The new DIP financing motion was filed with the U.S. Bankruptcy Court in
Delaware on February 14. Once the motion is reviewed and approved by the
court, the funds will be made available to Globalstar. In the meantime, the
company is moving ahead to establish a bidding process that will select the
most favorable final investment offer for the company. The bidding process is
expected to be completed during the second quarter of this year.

Columbia Ventures Corporation is an international investment company,
based in Vancouver, WA, with interests in aluminum smelting and recycling.

ICO Investment Corp. is a subsidiary of ICO Global Communications
(Holdings) Limited, a global telecommunications company.

Iridium Investments LLC is a private investment company that represents
some of the current investors in Iridium Satellite LLC, another mobile
satellite service company.

Loeb Partners Corp. is a member of a family of privately owned financial
service companies, based in New York, NY.

Globalstar is a provider of global mobile satellite telecommunications
services, offering both voice and data services from virtually anywhere in
over 100 countries around the world. For more information, visit Globalstar’s
web site at www.globalstar.com.

This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 and within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements provide our expectations or forecasts
of future events. Actual results could differ materially as a result of known
or unknown risks and uncertainties and other factors, including our ability to
secure sufficient funding under credit facilities or from other sources, to
restructure our debt, the acceleration of existing debt facilities and the
exercise of remedies with respect thereto, and other risks, uncertainties and
factors disclosed in the most recent report on Form 10-K and reports on Form
10-Q and Forms 8-K of Globalstar Telecommunications Ltd. and Globalstar, L.P.
filed with the Securities and Exchange Commission. We undertake no obligation
to update any forward-looking statement.

CONTACT: media, Mac Jeffery, +1-212-338-5383, or investors, The Abernathy
MacGregor Group, +1-877-566-7607, for Globalstar.