Globalstar expects the gateway to become fully operational in mid-2006, subject to Federal Communications Commission approval.

"Once operational, this will be the first satellite phone service specifically for Alaskans - the first mobile satellite services gateway in Alaska, the first satellite phone with a 907 area code, and the first satellite service that is truly affordable to the average Alaskan," said Jay Monroe, Chairman and CEO of Globalstar.

"We are also actively building a distribution network throughout the state and have already started discussions with key Alaskan communications companies," continued Monroe.

The new Wasilla satellite gateway will allow Alaskans reliable access to Globalstar services, including voice, e-mail, fax and internet access, and Globalstar enterprise data services to track, monitor and control mobile assets such as vehicles, shipping containers, marine vessels or other high- value assets.

Customers in Alaska and the Yukon can choose mobile satellite handsets for approximately USD $749.00, or fixed units that can be installed in residences, offices, lodges for as little as USD $625.00.

Many users have reported that the quality, reliability, and affordable service pricing make Globalstar ideal for primary telecommunications service throughout the state.

"With plans starting at $50.00 per month, or volume usage available for as little as 14 cents per minute, this is service that makes dial-tone affordable to the average Alaskan, and valuable for Alaskan industry," stated Monroe.

"Wasilla is pleased to host Alaska's first commercial satellite gateway, adding high-tech jobs to this fast-growing city, and helping to provide communications for the whole state," stated Wasilla Mayor Dianne Keller at the groundbreaking ceremony.

"Knowing that Globalstar calls from across the state will pass through Wasilla confirms the key role the city is playing in building the future of Alaska."

Because of the high concentration of companies in the commercial fishing, forestry, oil and gas and mining industries, Alaska is a high growth region for Globalstar, evidenced by increasing demand for reliable communications services where wireline or traditional wireless services are impractical or impossible.

The addition of service from the Wasilla satellite gateway will greatly improve coverage along Northern Pacific fishing grounds such as Dutch Harbor, allowing more users cost-effective voice telephony shipboard, as well as extending the range of vessel monitoring services. Globalstar's maritime kits are currently deployed on craft ranging from recreational vessels to seiners and other fishing boats, container ships and tankers.

With more than 11,000 registered aircraft in Alaska, the Alaska aviation market is also a potential high-growth market for Globalstar.

In addition to vehicle and maritime applications, Globalstar provides specially designed communication solutions for in-flight voice and data services aboard both helicopters and fixed-wing aircraft, using small, omni-directional antennas.

Globalstar's aviation solutions, offered through the company's value added- resellers, provide users with high quality air-to-ground, ground-to-air, and air-to-air communications, often with better voice quality than cellular networks.

The groundbreaking of an Alaska satellite gateway is one of many major investments announced by Globalstar over recent months, including the commercial launch of new gateway in Sebring, Florida, the announcement of a $140 million dollar manufacturing agreement with Qualcomm. and the addition of data appliqu¿s to provide asset tracking and other one-way data services worldwide.

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