AIRTOUCH FORMS JOINT VENTURE TO PROVIDE SATELLITE SERVICES IN MALAYSIA.

SAN FRANCISCO--(BUSINESS WIRE)--May 18, 1995--Moving closer toward its vision of providing worldwide wireless communications, AirTouch Communications (NYSE:ATI) today announced a joint venture with Sime Darby to offer wireless services in Malaysia using the Globalstar satellite-based system.

Under the terms of their agreement, AirTouch and Sime Darby, one of Southeast Asia's leading multinationals, will jointly pursue a license and establish operations to sell Globalstar service in Malaysia. AirTouch, with a 30 percent equity interest in the joint venture, will provide technical and marketing expertise while Sime Darby, with a 70 percent stake, will provide general and financial management.

AirTouch is a partner in Globalstar, which plans to offer voice, data, fax and position locating service beginning in 1998, using 48 low-earth orbit (LEO) satellites. AirTouch will exercise its option to be an exclusive service provider in Malaysia and already has the service provider rights for Globalstar in the United States, Japan, Indonesia, Belgium, Portugal, Austria, Switzerland, and the Netherlands. AirTouch recently formed a venture with Itochu Corp. to pursue Globalstar services in Japan.

"Malaysia is a very promising market for Globalstar," said Sam Ginn, chairman and chief executive officer of AirTouch Communications. "With the government moving to expand its telecommunications industry, there is a lot of untapped potential for service providers. Globalstar can be used to meet customer demand for reliable communications, serving as an enhancement to both the cellular and landline networks.

"We think that Sime Darby's national marketing and distribution capabilities will be a real asset in our effort to roll out Globalstar service in Malaysia quickly and efficiently," Ginn explained.

Satellite systems are ideal for providing global roaming services to intercontinental travelers and rural mobile services in areas that lack cellular or landline coverage. Globalstar's system will route calls through public and private cellular and fixed telephone networks, making the system transparent to callers and receivers. Calls will be set up and processed through gateways consisting of hardware, software, and a packet-switched data network for operational control, roaming access, billing and other administrative functions.

Malaysian-based Sime Darby operates more than 200 companies in 22 countries around the world. Its core business activities include heavy equipment and motor vehicle distribution, property development, manufacturing, insurance services and oil and gas.

AirTouch Communications is a global wireless communications company, with interests in cellular, paging, personal communications services and other wireless operations in the United States and 11 other nations. The company, which is based in San Francisco, serves nearly 4 million customers worldwide.

CONTACT: AirTouch Communications

Susan Rosenberg, 510/210-3910