ARNAV Systems Inc. Selects Globalstar Satellite Service.

Business Editors & High-Tech Writers

NEW YORK--(BUSINESS WIRE)--Oct. 11, 2000

ARNAV Systems Inc. of Puyallup, Wash., has announced an agreement with Globalstar (Nasdaq:GSTRF) to provide satellite-based voice and data communication for the ARNAV Aeronautical Network (AAN). Serving the general aviation (GA) market -- which includes regional jets, smaller air transport and private aircraft -- ARNAV will offer cockpit satellite telephony and data services of WxLink(TM) graphical weather services, flight following, e-mail messaging, engine trend monitoring and reporting and cockpit Internet connection for aircraft management services.

"Reliable, affordable satellite telephony and data services closes the last gap for GA pilot access to real-time weather and messaging services anywhere on the globe," said Frank Williams, president of ARNAV Systems Inc. "Combining other avionics building blocks like graphical displays, GPS navigation and engine monitoring with data link services allows for an unprecedented capability of information transfer between the aircraft and the ground. Globalstar adds an additional connection to our other wireless VHF, UHF and satellite networks that form the ARNAV Aeronautical Network. Along with the advanced weather products available today, new levels of safety and utility may be achieved in aviation," Williams added. The AAN currently produces geo-referenced aviation weather products for the USA, Mexico, Canada, Europe, Central America, South America, North Atlantic, North Pacific and South Pacific.

Affordable satellite telephony is a "technology first" for the thousands of GA aircraft that need voice communication outside of VHF/UHF radio range delivery. Initial customers for the Globalstar services will include cargo aircraft, emergency services, search and rescue, government agencies and aircraft with long range telephony and data link requirements. In applications with limited terrestrial communication availability, satellite access is more than a convenience -- it is a critical communications link in the event of an emergency as well as an asset to flight efficiency.

Susan Hamner, ARNAV vice president, states, "ARNAV had tested a variety of long range communication providers before committing to build cockpit avionics using the Globalstar system. We chose Globalstar as a Satellite Partner because of their innovative telephony and data communication capability as well as the low cost of equipment acquisition and services. The system works today and is supported by an impressive group of businesses that are committed to the future. As a Globalstar service provider, ARNAV can now offer a worldwide communication solution to everyone."

Tony Navarra, president of Globalstar, said, "We're delighted to have ARNAV as a partner with us in the GA market. The products and services they are now offering further demonstrate Globalstar's technical flexibility and the vast range of applications for which our service can be used."

ARNAV is announcing two Globalstar product offerings. The R-COM1000 is a voice telephony and packet data link system, comprised of a Qualcomm Mobile Phone, a phone docking station, an aircraft satellite antenna and a cockpit integration module which interfaces the phone into the audio panel, aircraft power supply and avionics display. Airborne phone access is accomplished via the avionics panel and the pilot headset(s). The phone can be undocked and used on the ground as a mobile satellite or cellular phone. The R-COM1000 will be offered at $9,995.00 (manufacturer's suggested retail price) with telephony service plans as low as $1.65 per minute. The basic telephone service provides voice, voicemail and short messaging service (SMS). SMS allows a variety of services such as delivery of news, weather, travel plans and directory browsing. Facsimile and other services will be offered later in 2001. The Globalstar current service coverage includes Alaska, Canada, USA, Mexico, Central America, South America, North Atlantic, Europe and Australia.

As a data-only offering, ARNAV will also introduce the R-COM50 packet data satellite transceiver. Data services offered will be WxLink weather services, e-mail, Out-Off-On-In (OOOI) messages (used to report aircraft operation data), automatic aircraft position reporting, engine trend monitoring and reporting and dispatch management through the AAN Internet Gateway. The R-COM50 will be offered at $6,995.00 with on-demand cost projected at $2.00 per combined data services message.

The R-COM1000 and R-COM50 will meet or exceed DO160D specifications, FAA Certified under STC and PMA, FCC and ITU approved for airborne application. The systems are currently in testing. ARNAV expects delivery of the R-COM1000 during the second quarter of 2001 with delivery of the R-COM50 to follow later that year.

In related news, ARNAV achieved FAA Certification of the Engine Trend Monitoring & Reporting equipment for the Cessna C208 Caravan. ARNAV has been working with Cessna Aircraft in the development of a Pratt & Whitney approved Engine Trend Monitoring Program (ETM), using ARNAV supplied data acquisition electronics. With the Globalstar system, engine exceedance data may be transferred from the aircraft to the dispatch or maintenance facility while in flight. This data includes position, altitude, airspeed and other aircraft parameters. The data is then analyzed for maintenance purposes, providing Flight Operations Quality Assurance (FOQA) like services for general aviation.

ARNAV Systems Inc. is a certified FAA Provider of Flight Information Services and a leading manufacturer of navigation, display and data link communication for the aviation market since 1972. For further information, visit the ARNAV Web site at www.arnav.com.

Globalstar, led by founding partner Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufactures, including co-founder Qualcomm Incorporated, Alenia, China Telecom (HK), DACOM, DaimlerChrysler Aerospace, Elsacom (a Finmeccanica Company), Hyundai, TE.SA.M (a France Telecom/Alcatel Company), Space Systems/Loral and Vodafone Airtouch. For more information, visit the Globalstar Web site at www.globalstar.com.