American Mobile Rolls-Out Multi-Year Contract with UPS; To Provide Wireless Communications to UPS Hand-Held Computers For Real-Time Package Tracking.

RESTON, Va.--(BUSINESS WIRE)--June 14, 1999--

American Mobile Satellite Corporation (NASDAQ:SKYC) today announced the roll-out of its multi-year contract with UPS to provide two-way wireless communications to a new hand-held computer used by UPS drivers. American Mobile's ARDIS(R) wireless data network will allow UPS drivers to transmit package delivery information to the company's TotalTrack package tracking system directly from UPS' new generation Delivery Information Acquisition Device (DIAD III), the first delivery device to both capture and transmit delivery information in real time.

The network's efficiencies will allow UPS drivers to easily send information to the TotalTrack system as soon as a delivery is made. In addition, the American Mobile wireless network will allow UPS drivers to remain in constant contact with dispatchers, enabling them to immediately receive urgent package pick-up requests.

"Continuing their innovative leadership in the package delivery business, UPS has combined sophisticated communications capability with logistical excellence," said Walter V. Purnell Jr., president and CEO of American Mobile. "Our network, with its breadth and depth, transmission speed, and deep in-building penetration, will allow UPS drivers to send package delivery information in office buildings, suburban neighborhoods, or anywhere they deliver packages."

According to UPS Vice President Dudley Land, "We are committed to finding new ways of utilizing technology to help us better serve our customers. By combining American Mobile's ARDIS network with our new DIAD III device, UPS will be the first package delivery company that will be able to capture and transmit delivery information at the same time. This will enable UPS to provide the most current package delivery information in the industry."

American Mobile's ARDIS nationwide network provides the industry's best network coverage and transmission speeds. It has the most extensive breadth and depth of coverage of any two-way wireless data packet network, providing coverage in approximately 430 metropolitan statistical areas (MSAs) and non-MSAs, which includes more than 10,700 cities and towns across the U.S. The ARDIS network also delivers outstanding in-building coverage, allowing users to communicate from customer sites in office buildings or while waiting to catch a flight. The network provides the industry's fastest wireless data transmission speed of 19.2 Kbps, enabling users to send and receive messages within seconds.

About UPS

UPS (www.ups.com) is the world's largest express carrier and package delivery company, offering an unmatched array of service options to more than 200 countries and territories. Based in Atlanta, UPS employs more than 330,000 people worldwide, delivers more than 3 billion packages and documents yearly and earned revenues of $24.8 billion in 1998. UPS has invested more than $10 billion in its extensive technology infrastructure, maintains one of the world's largest databases and has won two Computerworld Smithsonian awards for technology leadership and innovation.

About American Mobile

American Mobile (www.AmMobile.com) owns and operates an integrated terrestrial/satellite network and provides a wide range of mobile communication services, including digital voice dispatch, data communications, dual-mode mobile messaging, position reporting services, and satellite telephone to the continental United States, Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands, and hundreds of miles of U.S. coastal waters. American Mobile services are used in the transportation, field service, maritime and telemetry markets, and with eLink(SM), in the two-way wireless email market.

Factors that could cause forward-looking statements in this news release to differ materially from actual results are discussed in American Mobile Satellite Corporation's Form 10K for the year ended December 31, 1998, and other periodic filings the company has made with the Securities and Exchange Commission. Copies of the filings are available upon request from American Mobile Satellite Corporation's investor relations department.