Globalstar, the world’s most
widely-used satellite phone service, today released its results for the fourth
quarter and full year ending December 31, 2002. During the fourth quarter,
the company recorded a small decline in usage, consistent with seasonal
declines seen in prior year-end periods. Nevertheless, new products and
services continued to be introduced during the quarter, and subscriber levels
increased by some 36 percent in 2002 over 2001.

Globalstar L.P.’s total revenue for the fourth quarter of 2002 was $9.1
million, an increase of 23% over the third quarter. Total revenue for the
full year was $24.6 million, an increase of 284% over 2001, due primarily to
the acquisition of interests in sales and technical operations in the U.S.,
Canada and the Caribbean.

In 2002, Globalstar recorded a 43% increase of minutes of use (MOUs) to
34.2 million from 23.9 million in 2001. The company recorded a total of 9.6
million MOUs in the fourth quarter, representing a 5% decrease in traffic from
the third quarter, but a 37% increase over the same quarter in 2001.

“Despite the considerable time, resources, and effort we have had to
devote to our restructuring in 2002, Globalstar was still able to expand its
business over the previous year, steadily growing revenue and reducing its
expenses,” said Olof Lundberg, chairman and CEO of Globalstar. “Once our
restructuring is complete — currently projected to take place by mid-year —
we should be well positioned to resume expansion of our business at a much
higher rate, devoting our full resources toward sales growth as well as adding
new products and services.

“We have now received bid proposals from several potential investors under
our court-approved auction procedures, and we are in the process of reviewing
them to select the best restructuring proposal for our business,” Mr. Lundberg
added. “We hope to have a final bidder selected and confirmed by the Court in
the weeks ahead.”

Financial Results

A full discussion of Globalstar’s financial performance for the fourth
quarter and full year can be found in the company’s Annual Report on Form 10-
K, to be filed shortly with the U.S. Securities and Exchange Commission. In
addition to the figures cited above, further highlights include the following:

  • Net loss applicable to ordinary partnership interests was $36.4 million
    in the fourth quarter of 2002, compared with a net loss of $14.6
    million in the third quarter. This increased loss was largely due to a
    non-cash charge of $18.4 million related to launch vehicle terminations
    in October 2002. The launch vehicle termination liability will not be
    paid in cash, but will be settled as an unsecured claim in Globalstar’s
    bankruptcy case. For the full year, the company posted a loss of $153
    million, compared to a loss of $602 million for 2001.
  • The current quarter’s loss is equivalent to $0.55 per partnership
    interest, which converts to a loss of $0.20 per share of Globalstar
    Telecommunications Limited (GTL). For the full year, the loss is
    equivalent to $2.32 per partnership interest, for a loss of $0.66 per
    share of GTL.
  • In 2002, Globalstar continued to reduce operating costs while managing
    its expanding business. Despite the increased operational
    responsibilities stemming from the acquisition of Globalstar USA and a
    partial interest in Globalstar Canada, the company was able
    nevertheless to reduce expenses throughout the year, with net operating
    expenses for the year of $128 million, a reduction of 38% compared to
    2001. Globalstar ended the year with $15.3 million cash on hand. In
    February 2003, the company received approval for $10 million in debtor-
    in-possession financing, subject to certain loan conditions.

Company Operations

In the fourth quarter, Globalstar announced the availability in the U.S.
and Canada of several new products and accessories aimed largely at users who
live, work or travel in extreme environmental conditions on both land and sea.
These include new, weather-proof antenna units, vehicle units, and special
data adapters.

In November 2002, Globalstar also participated in a secure mobile
networking demonstration conducted by NASA Glenn Research Center and the U.S.
Coast Guard. In the demonstration, a Globalstar’s MCM-8 Multi-Channel Modem
was used to provide a secure wireless link to a mobile IP router aboard the
Coast Guard ship Neah Bay from the middle of Lake Erie, well beyond the range
of terrestrial radio networks.

During the quarter, Globalstar continued to work with its service
providers to establish roaming agreements between gateways, with the ultimate
goal of providing truly universal roaming for all of its customers. As of
mid-March 2003, all but a few gateways allow roaming for virtually all
Globalstar customers, and the company is working toward agreements to provide
full network-wide roaming in the future.

In late 2002, the company modified its method of estimating its subscriber
base in order to eliminate roamers from cellular networks from being counted
as regular Globalstar customers. As a result, as of December 31, 2002, the
company had approximately 77,000 subscribers worldwide, slightly fewer than
earlier reports. However, if earlier published subscriber levels are
recalculated under the new tracking method, the year-end 2002 subscriber count
represents an approximately 36% increase over year-end 2001.

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, including but not limited to
statements regarding the DIP facility and the bidding process, provide
expectations of future events. Actual events could differ materially from
those reflected in the forward-looking statements contained in this press
release because of various risks, uncertainties and other factors, including
but not limited to those relating to the satisfaction of conditions contained
in the DIP credit facility, the bankruptcy reorganization process generally
and the bidding process specifically. As a result, no assurance can be given
as to whether additional borrowings will be made available to Globalstar under
the DIP facility or as to whether the bidding process will occur as described
or result in the identification of a new investor or a restructuring of
Globalstar. 

    Contacts:  Media:
               Mac Jeffery
               212/338-5383

               Investors:
               The Abernathy MacGregor Group
               877/566-7607