AirTouch Satellite Services -- ATSS -- Signs Distribution Agreement With CellStar; AirTouch to Provide Globalstar Satellite-Based Communications Service in the U.S.

NEW ORLEANS--(BUSINESS WIRE)--Feb. 9, 1999--AirTouch Satellite Services, Inc. (a subsidiary of AirTouch Communications, Inc. NYSE:ATI) announced that it completed an agreement under which CellStar Corporation (Nasdaq:CLST) will distribute wireless handsets, fixed terminals, and accessories for AirTouch Satellite Services' customers on the Globalstar satellite communications network.

Under the agreement, CellStar will also provide procurement, fulfillment, packaging and returns management services within the United States. As one of the world's premier value-added telecommunications distributors, CellStar has the expertise to implement efficient and cost-effective processes.

Mike Kerr, Vice President & General Manager of AirTouch Satellite Services, Inc. said, "This agreement with CellStar enables ATSS to provide customers with high quality order fulfillment services and a responsive repair process."

Dick Gozia, President and Chief Operating Officer for CellStar commented, "CellStar is very pleased to serve as AirTouch Satellite Services' partner as it launches service in this important market. We are committed to providing efficient distribution and value-added services that will enhance its success and growth."

CellStar provides value-added services to wireless carriers and manufacturers in direct relationships. In 1999, CellStar will support AirTouch Satellite Services with its new global inventory management and information technology systems, as well as best-of-class distribution capabilities.

Globalstar is scheduled to launch commercial service in late 1999. The Globalstar system will provide high quality, affordable mobile satellite voice, fax, and data service via a small hand-held phone. The multi-mode phone will operate in traditional cellular modes (using the local cellular network), or satellite mode when beyond cellular coverage. When in satellite mode, the phone will communicate with one of 48 Globalstar satellites circling the earth which will relay the signal back down to the nearest earth station and inter-connect to the local telephone system (PSTN) or private networks.

AirTouch Satellite Services, Inc. is a subsidiary of AirTouch Communications with Globalstar service provider rights in North America and the Caribbean. AirTouch Communications is the largest wireless company in the world based on the more than 40 million customers served by its global ventures. AirTouch has more than 17 million customers based on its ownership share in cellular, paging, and personal communications services in the United States, Belgium, Egypt, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain, and Sweden, as well as the Globalstar satellite system. On January 15, 1999, AirTouch and Vodafone Group Plc announced a definitive agreement to merge. If consummated, the transaction would result in the creation of a global wireless company with more than 27 million customers in 23 countries. The transaction is expected to close in the second half of 1999. For more information, visit www.airtouch.com/globalstar.

Globalstar, led by Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including Qualcomm Incorporated, Alcatel, Alenia, China Telecom (HK), DACOM, Daimler-Benz Aerospace, Elsag Bailey, France Telecom, Space Systems/Loral and Vodafone. Globalstar, through its strategic partnerships, has service provider agreements in more than 100 countries. To date, Globalstar service providers have been awarded licenses in about 32 countries.

CellStar Corporation is a global company focused on providing value-added services to wireless carriers and manufacturers in direct relationships. CellStar is one of the world's largest non-carrier wholesale distributors of wireless handsets for major manufacturers, with operations in North America, the Asia-Pacific Region, Latin America and Europe. For the year ended November 30, 1998, the Company reported sales of approximately $2 billion. Additional information about CellStar may be found on its web site at www.cellstar.com.

Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Except for the historical information presented, the matters discussed throughout this release are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially. Such factors include: a change in economic conditions in the various markets served by AirTouch Satellite Services' operations which would adversely affect the level of demand for Globalstar wireless services; higher than anticipated costs associated with the deployment of Globalstar service, which could result in higher than anticipated pricing, delays in service roll-out due to regulatory issues, technology issues, and or other service development issues, the possibility that technologies will not perform according to expectations or that vendor performance will not meet requirements, the impact of new business opportunities requiring significant up-front investments; the impact on capital spending from the deployment of Globalstar; and higher than anticipated costs associated with addressing the Year 2000 problem. These and other factors related to the business are described in the AirTouch Communications' SEC filings, including in its 10-K under "Investment Considerations" and the quarterly reports on Form 10-Q, and in CellStar's Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, which are on file with the SEC.