Satmex and Globalstar De Mexico to Bring Satellite Communications to More Than 4,500 Gas Stations in Mexico.

Business Editors

MEXICO CITY--(BUSINESS WIRE)--June 27, 2000

Satmex and Globalstar de Mexico today announced that they have signed an agreement with The National Organization of Gas Expenders (ONEXPO), an operator of 4,500 gasoline stations across Mexico, to implement satellite-based data and voice communications services throughout its dealer network.

Under the terms of the agreement, Satmex and Globalstar de Mexico will provide consulting services to ONEXPO to develop a plan for the use of both very small aperture terminals (VSAT) and Globalstar fixed phone units at ONEXPO dealers across Mexico. These two systems will be used in varying combinations to allow individual dealers to send and receive customer transaction and other data over Satmex geostationary satellites and also to provide voice telephone service to dealers in remote locations who currently have limited or, in some cases, no access to terrestrial telephone service.

"We are pleased to announce this agreement that will contribute to the development of more efficient telecommunications systems in gas stations throughout the country, which will result in better service and increased productivity," said Guillermo Velazquez Azueta, Managing Director of the National Organization of Gas Expenders.

"Satmex and Globalstar de Mexico are honored to be working with ONEXPO in helping not only to improve the productivity and services of such an important segment of the Mexican industry, but also to provide vital voice communications services in areas never before reached by phone," said Lauro Gonzalez, Chief Executive Officer of Satmex and Globalstar de Mexico.

Globalstar (NASDAQ:GSTRF) provides affordable satellite-based digital voice and data services to a broad range of subscribers and users. Globalstar meets the needs of mobile telephone users who live, work or travel in areas not covered by cellular systems, as well as residents of under-served markets who can use Globalstar's fixed-site phones to satisfy their needs for basic telephony. Led by founding partner Loral Space & Communications (NYSE:LOR), Globalstar 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.

Globalstar de Mexico, founded in 1996, is a joint venture between the Mexican holding company Principia, Vodafone AirTouch Plc., and Loral Space & Communications. For more information on the Globalstar system, please visit their web site at www.globalstar.com. For specific information on products available through Globalstar de Mexico and authorized distributors, contact Globalstar de Mexico at [phone].

Satmex, a leading Mexican satellite operator in the Americas, leases C and Ku band capacity on the Solidaridad 1, Solidaridad 2 and Satmex 5 geostationary satellites. Through its business partners in the NAFTA region and Latin America, Satmex delivers over 170 DTH channels to thousands of households, as well as news and entertainment to approximately 500 million viewers throughout the continent. Satmex provides high-speed connectivity to ISPs and digital broadcast services providers (DBS). Every day, thousands of long distance telephone calls are transmitted through the Satmex fleet. Distance learning, rural telephony and telemedicine, among other services, are delivered through the Satmex satellites, contributing to the development of rural regions, the integration of Latin America and the rest of the continent, and more efficient communications in some of the world's largest cities. For more information, please visit www.satmex.com.

Principia is a leading Mexican telecommunications holding company. In 1997, Principia and Loral Space & Communications were selected to acquire 75 percent of Satmex in connection with the privatization of Mexico's fixed satellite services.

Vodafone AirTouch Plc. is the world's largest wireless communications firm, based in the United Kingdom. It has mobile operations in 24 countries on five continents, with more than 28 million proportionate cellular customers. Vodafone AirTouch is the service provider for Globalstar in a total of 15 countries across North America, Europe, Australia, Mexico and southern Africa. Vodafone AirTouch has an approximate eight-percent share in the Globalstar Limited Partnership. For more information on Vodafone AirTouch Plc., visit www.vodafone_airtouch_plc.com.

Loral Space & Communications (NYSE: LOR) 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.