AirTouch, Loral, and Cancom Announce Agreement in Principle to Provide Globalstar Mobile Satellite Services in Canada.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 12, 1997--Canadian Satellite Communications Inc. (Cancom) today announced that it has reached an agreement in principle with AirTouch Satellite Services and Loral Space & Communications to form a joint venture to provide fixed and mobile wireless services throughout Canada using the Globalstar satellite-based communications system. Cancom would own the majority interest in Globalstar Canada, pending approval by Industry Canada.

With today's announcement, Canada joins a group of over 100 countries planning to offer voice, data, and fax services via Globalstar's low earth orbit (LEO) satellite system. Globalstar L.P. is a partnership of leading international satellite and telecommunications manufacturers and cellular operators constructing a $2.5 billion system of 48 LEO satellites to provide global mobile communications. The Globalstar system is expected to provide an array of affordable mobile satellite services, including basic voice telephony, enhanced telephony services such as call forwarding, conferencing, and call waiting, data, messaging and fax services, paging, and position locating services virtually anywhere in the world.

Globalstar Canada will be particularly useful in remote areas that have no wireless or wireline telephony service. The Globalstar venture is well aligned with Cancom's corporate mission to provide a wide range of satellite-based services to remote and underserved communities across Canada. The Globalstar system is designed to connect with existing terrestrial switching networks and will complement Canada's cellular and PCS providers by providing services in areas without cellular coverage.

Alain Gourd, Cancom President and CEO, said, "We are delighted this agreement with world leaders in satellite communications is taking shape. This will certainly strengthen Cancom's position as Canada's leading provider of comprehensive satellite services."

"Canada will be a welcome addition to our Globalstar markets," said Arun Sarin, President and COO of AirTouch Communications. "We already have Globalstar service provider rights in the United States and Mexico. This will complete our coverage of North America and further our strategy of providing truly global wireless service."

Bernard L. Schwartz, chairman and CEO of both Globalstar and Loral, stated: "We believe Globalstar is particularly well-suited for the vast Canadian marketplace. Loral is pleased to join AirTouch and Cancom in providing a robust fixed and mobile wireless service enabling the efficient extension of telephony service throughout Canada."

Globalstar's customers will place or receive calls using hand-held, vehicle-mounted or fixed terrestrial terminals. Both the hand-held and vehicle-mounted terminals are expected to resemble cellular telephones. The fixed terminals will resemble conventional telephone booths. Globalstar is developing terminals capable of accessing both the Globalstar satellite system and the user's terrestrial cellular service. The primary markets are expected to be customers who travel worldwide and need a single reliable phone connection, and customers who travel in North America beyond the range of normal cellular telephone systems.

On behalf of Globalstar Canada, Cancom has filed an application with Industry Canada for approval to build and operate the Canadian gateways for the Globalstar system. Cancom anticipates that Globalstar Canada would begin providing commercial services in late 1998. Globalstar Canada will be a Canadian-owned and controlled corporation. Globalstar Canada will be majority-owned and controlled by Cancom Globalstar Holdings Inc., a wholly-owned direct subsidiary of Cancom. AirTouch/Loral Canada Co. will hold the remaining minority interest.

Cancom, trading on the Toronto and Montreal Stock Exchanges (SAT) with Head Office in Montreal and Operation Center in Mississauga, is the foremost provider of digital satellite services in Canada. Cancom's Broadcast Division offers digital TV and radio signals in English and French to more than 2,600 small cable companies reaching close to 4 million homes across the country. Cancom's Business Division provides customized integrated satellite and terrestrial mobile, data and Internet networks throughout the country and Cancom's Business Television leads in providing permanent and on request multi-point private broadcasting networks as well as the One Touch interactive distant learning systems. Cancom is the exclusive distributor of QUALCOMM's mobile geostationary OmniTRACS system in Canada.

AirTouch Satellite Services Inc. is a subsidiary of AirTouch Communications (NYSE: ATI), a global wireless communications company, with interests in cellular, paging, and PCS in the United States, Belgium, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain and Sweden, as well an interest in Globalstar L.P. AirTouch has Globalstar service provider rights in the U.S. and nine other countries. The company, based in San Francisco, serves over 8 million proportionate customers worldwide.

Loral Space & Communications Ltd. (NYSE: LOR), with headquarters in New York City, is a major international provider of satellites and satellite-based services. Loral is the largest equity owner and managing general partner of Globalstar and of Space Systems/Loral, the world leader in manufacturing large commercial satellites, and has Globalstar service provider rights in several countries.

Globalstar, L.P. (NASDAQ: GSTRF), based in San Jose, Calif., is a limited partnership led by Loral Space & Communications. In addition to co-founder QUALCOMM (NASDAQ: QCOMM) of San Diego, the partnership includes 10 of the world's leading telecommunications service providers and satellite equipment manufacturers.

CONTACT: CANCOM

Patricia Dumas, 905/272-6603 or 613/232-4814

or

AIRTOUCH

Susan Rosenberg, 510/210-3910

or

LORAL

David Benton, 703/414-1045