[SatNews] With a net profit each year since its roll-out in 2003, Global Telesat was certainly a solid target for acquisition...

Sanswire Corp. (OTCBB: SNSR), a developer of lighter-than-air unmanned aerial vehicles ("UAVs") and related technologies, has entered into a Letter of Intent (the "LOI") to acquire 100 percent of the outstanding shares of capital stock of Global Telesat Corp. ("GTC"), a privately held U.S. based satellite tracking firm which, since its inception in 2003, has grossed over $27 million in revenues and has had a positive cash flow and net profit every year. Additionally, the Company has received a financing commitment for up to $1.5 million from Space Florida, an independent special district of the State of Florida, created to foster the growth of the space industry in Florida.

The LOI contemplates the acquisition of all of the outstanding capital stock of GTC, with GTC (and its assets, inventory, government and commercial contracts, customer lists and associated operations and equipment) becoming a wholly-owned subsidiary of the Company following the closing of the proposed transaction. The purchase price to be paid by the Company for GTC would be paid as follows: $500,000 in cash, 30,000,000 shares of the Company's common stock, and an earn-out equal to 5 percent of the gross revenues related to certain satellite ground station construction rights held by GTC. All existing GTC personnel will enter into employment agreements with the Company following completion of the deal.

GTC designs, markets and provides satellite-based asset tracking hardware, airtime and related equipment primarily focused on providing customized tracking solutions and ground station construction services to the U.S. Department of Defense ("DoD") and its prime contractors. GTC, however, is increasingly looking to capitalize on the increasing world-wide commercial demand for satellite based tracking products and services and this would be a major focus of GTC following the proposed transaction. GTC's satellite tracking hardware and processing equipment ("Appliques") are collocated throughout the world at ground station facilities owned and operated by Globalstar Inc. and their independent gateway partners, allowing Globalstar to use GTC's assets to offer commercial tracking services to many of their subscribers around the world even in remote locations. GTC also operates its own satellite ground station facility and has in the past been awarded contracts to construct non-commercial satellite ground stations for DoD prime contractors.