Globalstar Reports Results for Second Quarter of 2001

Satellite communications company, Globalstar, has reported its results for the quarter ended June 30, 2001, which showed steady increases in both voice and data traffic, with a broadening base of new customers among key industry targets. Efforts to restructure the company's finances are continuing with the assistance of outside advisors. In the meantime, the company's marketing and sales efforts are showing growing acceptance of the service across industries and government organizations around the world.

As a result, the company's business measurements, both in minutes of use (MOUs) and subscriber numbers, rose substantially over the previous quarter.

Globalstar recorded a total of 5.4 million minutes of use (MOUs), including both mobile and fixed service, in the second quarter, representing a 33 percent increase in traffic over the previous quarter. The estimated number of mobile and fixed subscribers at the end of June was 51,600, an increase of 27 percent from the previous quarter.

As of the end of July, there were approximately 55,000 subscribers registered on the Globalstar system.