Globalstar announced today that Martel Ehf., of Reykjavik, Iceland, has been awarded exclusive rights to provide Globalstar satellite services in Iceland, Greenland, and the Faeroe Islands. In addition, Martel announced that it will team with Rome-based Elsacom,

an exclusive Globalstar service provider in 24 European countries,

including all of Scandinavia, to provide satellite telephone services

to land-based and maritime users throughout the North Sea and the

North Atlantic Ocean regions. Globalstar is expected to commence

commercial service in the fall of 1999.

"We see a tremendous potential market for Globalstar satellite

services in the North Sea and North Atlantic regions," said Johann F.

Kristjansson, general manager of Martel. "Given the similarity of user

operation, and its compatibility with GSM systems, we see Globalstar

as a sort of Super GSM system that will extend GSM services across

Iceland and our other territories, as well as providing quality

services for the maritime industry."

Martel will build and operate a gateway in Iceland that will

interconnect the Globalstar telephone calls with Iceland's existing

telecommunications infrastructure. The company, which has been awarded

operating and business licenses by the Icelandic government, will

offer specialized services for the maritime and offshore oil services

markets. To handle the region's cold and rugged environments, Martel

will contract with handset manufacturers and other vendors to develop

specially modified user terminals. The modified terminals will feature

a position location capability.

"We believe Globalstar is the breakthrough people have been

waiting for," said Kristjansson. "It offers the first truly affordable

mobile phone that will enable remote users to stay in touch with their

offices, families and friends. We believe Globalstar phones will be

especially valuable to maritime users – such as fishing fleets – and

remote users, particularly as a means to dial 911 or 112 emergency

services in the case of an accident or impending disaster. The

position location function will also prove to be extremely useful in

these circumstances."

Terrestrial and maritime subscribers will use handheld user

terminals similar to today's cellular phones, but with dual-mode

capability to enable them to switch from satellite telephony to

conventional cellular telephony as required. Some Globalstar users in

rural and remote areas may make or receive calls through fixed-site

telephones, similar either to phone booths or ordinary wireline

telephones. Subscriber terminals will communicate through a Globalstar

satellite to a gateway, that in turn will connect calls into existing

telecommunications networks.

"The addition of Martel fills in an important coverage area for

Globalstar," said Doug Dwyre, president of Globalstar. "We will now

have ubiquitous coverage of the entire North Atlantic Ocean region –

from Newfoundland to the United Kingdom – and throughout the North Sea

region – from the United Kingdom to Scandinavia."

The Globalstar system, comprising 48 low-earth-orbit (LEO)

satellites and a global network of ground stations, will allow people

around the world to make or receive calls using hand-held,

vehicle-mounted and fixed-site terminals from nearly every corner of

the Earth. In addition to voice services, Globalstar features include

narrow-band data transmission and facsimile services. Globalstar,

which successfully launched eight satellites earlier this year,

expects to initiate service in the third quarter of 1999 with a

constellation of at least 32 satellites.

Globalstar now has service provider agreements in more than 100

countries, covering more than 90% of Globalstar's business plan. Five

Globalstar gateways are being used to control and test the satellite

system, and site work and construction is under way at 20 more gateway

sites around the world.

Martel Ehf., based in Reykjavik, Iceland, began as a provider of

specialized electronics and software services. It then expanded into

fleet tracking and maritime satellite communications, capitalizing on

new satellite and wireless communications services opportunities. It

is committed to developing a variety of data, voice and broadcast

services in conjunction with partner and affiliate companies.

GlobalStar