...surrounding the satellite manufacturing contract. The arbitration tribunal rules that the terms provided for in the 2009 amended and restated contract between the Thales and Globalstar no longer govern any future purchase. The tribunal found a termination for convenience of the entirety of Phase 3 and, consequently, Globalstar owes approximately 53 million euros in contract cancellation charges. The tribunal finally ruled that Globalstar can only order more satellites on the basis of a mutually agreed price and contractual terms. The parties are closely working together to find a global solution.

Reynald Seznec, CEO of Thales Alenia Space, said, “We are interested in addressing the issues related to the purchase of additional satellites. We shall work together with Globalstar management with a view to find a solution for the benefit of all stakeholders. We thank all parties for their continued assistance as we go through this process”.

Globalstar, Inc., (“Globalstar” or the “Company”) has also announced the decision of the arbitrators in the commercial arbitration concerning its 2009 satellite manufacturing contract with Thales Alenia Space France (“Thales”). The arbitrators ruled that Thales has no further obligation to manufacture or deliver satellites under Phase 3 of the contract. Phase 3 provided for Globalstar’s option to purchase up to 23 second-generation satellites in addition to the 25 satellites purchased in the first two phases under the contract. Although the Company and Thales may agree to other terms, the arbitrator’s ruling also requires Globalstar to pay Thales approximately 53 million euros in termination charges by June 9, 2012. Globalstar and Thales have already initiated post-ruling discussions to seek mutually agreeable solutions without which there are likely to be materially negative consequences to Globalstar, including with respect to its debt agreements, ongoing work with Thales and business operations.

“Although we had hoped for a different outcome, we have been in constant contact with Thales over the last several months as completion of Phase 2 satellites continues, and over the past days to negotiate acceptable terms for ordering additional satellites. Having already paid over EUR 450 million to Thales and having experienced satellite delivery delays approaching two years, we remain hopeful that a mutually acceptable agreement can be reached,” said Jay Monroe, Chairman and CEO of Globalstar. Mr. Monroe added, “Globalstar has been operating under extremely challenging circumstances for the past few years as a result of delayed satellite deliveries and remains amenable to negotiating a positive resolution with Thales.”