ENEL Of Italy Becomes Major Globalstar Customer.

Business Editors

ROME & NEW YORK--(BUSINESS WIRE)--July 26, 2001

National power company orders 4,500 phones;

Globalstar sales and usage continue to rise across

other industries and geographies

Globalstar (NASDAQ:GSTRF), the global mobile satellite telephone company, today announced that Ente Nazionale per l'Energia Elettrica (ENEL), the largest electric power utility in Italy, has ordered 4,500 Globalstar phones, the largest of a series of orders that Globalstar has closed in recent weeks around the world.

Globalstar phones, both mobile and fixed models, are now being provided to ENEL by Wind, a leading Italian wireless provider, as part of an integrated communications system combining Wind's terrestrial GSM cellular service with Globalstar's satellite service. The phones will be used by ENEL field personnel in the maintenance and monitoring of electric power lines and other operations, and also as a back-up communications system in case of power failures or other emergency situations.

"Demand for Globalstar services is continuing to rise around the world, particularly as we introduce data services in more territories," said Tony Navarra, president of Globalstar. "We are delighted to have been chosen by ENEL to provide our reliable, cost-effective communications in areas of their operations where no other wireless solution is available."

"This is a validation of the strong demand for mobile satellite services among industrial users, and we can expect to see additional momentum as the value of Globalstar's data services becomes increasingly recognized and available," said Andrew Seybold, editor-in-chief of Forbes/Andrew Seybold's Wireless Outlook.

With service coverage now reaching across more than 100 countries, Globalstar provides both the highest voice quality and fastest data transmission service available in a single hand-held satellite phone. In addition to the recent order from ENEL, Globalstar continues to sign up customers across a wide range of industries and governmental areas in every region where service is available. In the past several weeks alone, new customers have been acquired all target markets including:

Oil exploration and transport: Petrobras, the Brazilian national petroleum company, and Caspian Pipeline Consortium, Sakhalin Energy, and Tyumen Oil Geophysics -- three Russian companies -- recently selected Globalstar phones for use in remote areas and from offshore oil platforms.

Electric power transmission: Repair crews for AO Tyumenenergo, an electric power company in Russia, are now using Globalstar phones while servicing high-voltage power lines in isolated locations.

Construction: Baltic Construction Company has deployed both fixed and mobile phones for both voice and data communications along a railway system through the Amur Region of Russia.

Broadcasting: Most of the major U.S. television networks have purchased Globalstar phones for their news bureaus, both in the U.S. and overseas. ABC News, for example, has purchased a number of phones for use in the southern U.S. during hurricane season when other forms of communications may be knocked out.

Forestry: Both the U.S. Forest Service and the British Columbia Ministry of Forests in Canada have recently purchased Globalstar phones. Describing Globalstar service, John Flanagan, Fire Operations Specialist with the Protection Branch of the British Columbia Ministry of Forests, said, "The clarity is excellent, clear and crisp. I would give it a five out of five. We see the use of satellite communications as the answer for the efficient management of our fire control resources."

Remote Communities: 180 fixed units were recently installed in a variety of remote communities across Venezuela, with further units now in the process of being installed. About 60 of these units have been in place for several weeks and are already each recording over 2,000 minutes of use per month, with some individual phones running as high as 5,000 minutes. Similar usage patterns are also being seen in other fixed phone installations elsewhere in Latin America.

Government: Two Brazilian state governments recently ordered Globalstar equipment, with phones being used in one state by the Tax Authority for installation in a fleet of vehicles used to support tax collection in remote locations. In the second state, a network of hydrometeorology measurement stations will soon be using Globalstar SCADA data modems to regularly transmit rainfall and other weather information to a central data collection point. In the United States, local, state and federal government agencies continue to sign up for Globalstar service. In the last few weeks, Orange County, California and the State of Nevada have collectively purchased several hundred Globalstar phones, and New York State has ordered several of the company's recently introduced encryption units.

"The breadth, diversity, and steady growth of our customer base are clear indications of a large, robust demand for Globalstar services around the world," Mr. Navarra added. "Tapping this diffuse market has taken time, but today's announcement helps confirm business and governments are coming to recognize the value and utility of this remarkable, unique product."

Globalstar is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including co-founders Loral Space & Communications and 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 Group Plc. For more information, visit Globalstar's web site at www.globalstar.com.