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Alcatel Alenia Space signs a Euro 661 million contract with Globalstar

04 December 2006

Alcatel Alenia Space today announced it has signed a Euro 661 million contract with Globalstar, Inc. (NASDAQ: GSAT), a leading provider of mobile satellite voice and data services to businesses, government and individuals, to provide their second-generation satellite constellation. Per this contract, Alcatel Alenia Space, as prime contractor, will design, manufacture and deliver 48 low-earth-orbit (LEO) Globalstar satellites as well as launch support services prior to and during the launches and mission operations support.

Jay Monroe, Chairman and CEO of Globalstar, Inc. and Pascale Sourisse, President and CEO of Alcatel Alenia Space formally signed the contract agreement in New York, N.Y.

This definitive contract occurs a few weeks after the preliminary contract (Authorisation To Proceed) signature aimed at defining the program readiness review and developing program milestones.

"We are extremely pleased with this agreement, which not only secures the Globalstar space segment through at least 2025, but also takes us another step to offering a host of exciting future services while assisting us in our strategy to maximize our global spectrum opportunity," said Jay Monroe. Mr. Monroe added, "We are thrilled to be working with Alcatel Alenia Space again on something so vital to the long term success of Globalstar and look forward to a mutually beneficial relationship as we move through the next decade and beyond."

Pascale Sourisse, President and CEO of Alcatel Alenia Space commented: "I would like to thank Globalstar for their trust in Alcatel Alenia Space for the delivery of their second-generation LEO satellite constellation. We are grateful for the confidence demonstrated through this contract and are looking forward to a beneficial relationship over the next several years with Globalstar." Mrs Sourisse added: "This contract highlights Alcatel Alenia Space's strong competences and resources to design, manufacture and integrate Globalstar's whole satellite constellation as well as our expertise in providing competitive satellite solutions. It confirms Alcatel Alenia Space worldwide leadership in telecommunications satellite orders for the year 2006."

With a launch mass of approximately 700 kg and an end-of-life power of 1.7 kW, Globalstar satellites will be fitted with 32 transponders in C-band, S-band and L-band. Starting in 2009, Globalstar satellites will be launched by 6 to 8 at the same time and will have a lifetime of 15 years.

This agreement will involve Alcatel Alenia Space's production sites in France, Italy, Spain and Belgium. Globalstar's second-generation satellites will be assembled and integrated in Alcatel Alenia Space facility in Roma (Italy). The payloads will be provided by the company's facility in Toulouse (France); the structures as well as the thermal subsystems being provided by its facility in Cannes (France).

Alcatel Alenia Space participated in the design of the complete first generation system and was responsible for the supply of satellites payloads, structures, thermal subsystems as well as the complete satellite integration. The company was also responsible for manufacturing and installing the Globalstar ground station antenna terminals.

In order to supplement Globalstar current constellation, Alcatel Alenia Space is currently conducting a complete performance review comprising testing and pre-launch preparations for the eight Globalstar's first-generation ground spare satellites, in its facility in Roma (Italy).

About Alcatel Alenia Space
Alcatel Alenia Space is the European leader in satellite systems and at the forefront of orbital infrastructures. Created in July 2005, the company brings together the vast experience and know-how of Alcatel Space and Alenia Spazio to form a new leading force in European space technology. Alcatel Alenia Space sets the global standard for space developments that impact everybody's future: from navigation to telecommunications, from meteorology to environmental monitoring, from defense to science and observation.

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