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Alcatel signs initial agreement with Globalstar for 2nd generation LEO satellite constellation

10 October 2006

Alcatel Alenia Space today announced it has signed an initial agreement (Authorization To Proceed or ATP) with Globalstar, Inc., a provider of mobile satellite voice and data services, to commence work on Globalstar's second-generation satellite constellation. In addition to engaging Alcatel Alenia Space to conduct a program readiness review and to develop program milestones, the ATP provides that Globalstar and Alcatel Alenia Space will negotiate a definitive contract for Alcatel Alenia Space to construct 48 low-earth-orbit (LEO) satellites for Globalstar's second-generation satellite constellation. The ATP will terminate on the earlier of the signing of a definitive contract on November 15, 2006.

Once signed, the definitive contract contemplates that Alcatel Alenia Space, as prime contractor, will design, manufacture and deliver the 48 LEO Globalstar satellites as well as related services such as launch support services and operations support services.

"We are extremely pleased to be working with Alcatel Alenia Space on an agreement that is so vital for the long term success of Globalstar," said Jay Monroe, Chairman and CEO of Globalstar, Inc. Mr Monroe added, "This agreement is a crucial first step towards securing the Globalstar space segment and augmenting our present LEO constellation of satellites. Of extreme importance, the new constellation is intended also to provide our customers with long term continuity of service by being fully backwards compatible with our current line of products."

Pascale Sourisse, President and CEO of Alcatel Alenia Space commented: "We are very proud that Globalstar has extended its cooperation with us and continues to place its trust in our satellite solutions. This agreement demonstrates our capability to design and build large series of LEO satellites as well as our expertise in providing competitive satellite solutions." Mrs Sourisse added: "This agreement will involve Alcatel Alenia Space's production sites in France, Italy, Spain and Belgium. It highlights Alcatel Alenia Space worldwide leadership in telecommunications satellite orders for the year 2006."

Alcatel Alenia Space participated in the design of the complete first generation system and was responsible for the supply of satellites payloads, structure, thermal subsystems as well as the complete satellites integration.