Globalstar Provides First Commercial Phone Calls Between North and South Korea in Nearly 50 Years.

Business Editors & High Tech Writers

NEW YORK--(BUSINESS WIRE)--June 22, 2000

South Korean Delegation Uses Mobile Satellite

Telephones at Historic Korean Summit

Globalstar (NASDAQ: GSTRF), the global mobile satellite telephone service, reached a new milestone last week when South Korean officials used the company's satellite phones during the recent summit meeting in Pyongyang, North Korea, making the first commercial telephone calls directly between North and South Korea in nearly 50 years.

Equipped with 11 Globalstar Qualcomm phones, members of the staff accompanying South Korean president Kim Dae Jung were able to communicate with each other and with their counterparts in Seoul, South Korea, throughout the summit. During the entire visit, the Globalstar phones performed well, transmitting clear voice signals via the system's satellite constellation and the Globalstar gateway located in Yeoju, South Korea.

"The Korean summit was a historic breakthrough in communication between these two countries, and we are very proud to have been a part of this important event," said Tony Navarra, president of Globalstar. "As discussions and visits continue between North and South Korea, Globalstar will be invaluable to future visitors to the North, including government officials, businesspeople, and even tourists."

To commemorate the successful outcome of this event, DACOM, the Globalstar service provider in South Korea, is offering special promotional packages until July 21, including 100 free minutes of domestic calls and other discounts. DACOM markets Globalstar services to a range of business and individual users, with particular emphasis on the maritime sector which currently has an exceptional need for wireless communications following recent termination of analog radio services previously used by South Korean sea-going vessels.

Globalstar, led by founding partner Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, 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 Globalstar's web site at www.globalstar.com.

Loral Space & Communications (NYSE:LOR) is the managing partner and, at 40 percent, is the largest equity owner of Globalstar. Loral is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services, and international direct-to-home satellite services. For more information, visit Loral's web site at www.loral.com.

DACOM was founded in 1982 with the intention of moving South Korea into the Information Age. Now a leading South Korean telecommunications company, this multifaceted telecommunications service company has helped pioneer South Korea's data telecommunications industry during the last two decades.

DACOM is a top provider of Korean Internet and other on-line services, as well as wireline phone services, domestic and international long distance, data, and satellite telecommunications services. DACOM's on-line service, the first of its kind in the nation, currently serves over two million subscribers. DACOM is the exclusive provider of Globalstar services in South Korea. For more information, visit the DACOM web site at www.dacom.co.kr.