Globalstar has signed an agreement with Taiwan's Chunghwa Telecom granting exclusive rights to provide Globalstar mobile satellite services in Taiwan beginning in 1999.

"Taiwan represents an important market and a key ingredient in our

strategy to provide satellite-based services throughout Asia and the

world," said Mr. Ming Louie, Globalstar vice president of Asia-Pacific

business development, at the signing ceremony in Taipei. ¿The addition

of Chunghwa Telecom to Globalstar's worldwide network of service

providers brings to 117 the number of countries with service provider

agreements, providing Globalstar access to more than 90 percent of its

projected 2002 subscriber base of three million.¿

"Chunghwa's participation in Globalstar is a natural evolution in its

continued commitment to investment in new communications services and

technologies," commented Dr. S. C. Lu, president and CEO of Chunghwa

Telecom.

Under the service agreement, Chunghwa, the leading telecommunications

services provider in Taiwan, will own the sole right to Globalstar

services in Taiwan. Chunghwa will also be responsible for the

construction and operation of Taiwan's Globalstar gateway.

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. Globalstar will also provide narrow-band data

transmission, messaging, and facsimile services.

Some subscribers will use portable phones similar to today's cellular

phones, with dual-mode or tri-mode capability so subscribers can switch

from conventional analog or digital cellular telephony to satellite

telephony as required. Subscribers in rural and remote areas may make

or receive calls through fixed-site telephones, similar either to phone

booths or ordinary residential and business telephones. Globalstar

phones will communicate through a Globalstar satellite to a gateway–or

ground station — that in turn will connect calls into the existing

terrestrial telecommunications network.

Globalstar currently has eight satellites in orbit and expects to have a

minimum of 32 satellites in its constellation to initiate commercial

service in the Fall of 1999. 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. Globalstar plans to

start commercial services around the world in the Fall of 1999.

About Chunghwa Telecom

Chunghwa Telecom Co, Ltd., the largest telecommunications services

provider in Taiwan, succeeded the Directorate General of

Telecommunications (DGT) to perform its services and operations as a

state-owned company, while DGT was restructured to act as a regulatory

body only. Such reorganization is intended to implement ROC government¿s

liberalization policies, to upgrade service quality for the rapidly

growing demands in local telecom markets, and to explore overseas

telecom market niches. As of July 1, 1998, Chunghwa Telecom has 34,747

employees to handle network operations and service marketing for over 16

million subscribers, including fixed telephones, mobile phones, radio

paging and internet services.