Globalstar Announces Agreement With Shahad Al Sahra to Operate Satellite Gateway in Saudi Arabia

Jan. 23, 2012

Globalstar, Inc. has signed a letter of intent with Shahad Al Sahra Trading Est. (SAS), for SAS's ownership and operation of a satellite gateway ground station located in Saudi Arabia and the establishment of a Satellite Services Agreement.

The gateway, which is already constructed, will provide Globalstar mobile satellite voice and data services to all of Saudi Arabia and throughout parts of the surrounding Middle East region. The transaction would also provide SAS as the independent service provider, with access to one of the world's largest remote petrochemical exploration markets.

"As we complete our satellite launches and deploy our new second-generation constellation, we expect to expand our market opportunities both domestically and abroad," said Jim Mandala, VP of International Sales for Globalstar, Inc. "With the deployment of our new constellation, 2012 is a turnaround year for Globalstar. We expect today's announcement to be simply the first in a series of product and network initiatives designed to raise Globalstar to the preeminent position as the global leader in the mobile satellite services marketplace."

Globalstar and SAS expect to enter into definitive agreements in the near future and request the necessary licensing approvals from the Saudi Arabian telecommunication regulatory authority.