Globalstar Signs Definitive Agreement With Thales Alenia Space for Delivery of Six Additional Satellites

Posted on September 14, 2012 by Jyoti Xenel

Globalstar, Inc and satellite manufacturer Thales Alenia Space (TAS) today announced the signing of a contract for the manufacture and delivery of six additional satellites for the Globalstar second-generation constellation. The joint announcement was made during the Euroconsult World Satellite Business Week in Paris. The satellites, which are expected to be delivered and launched in 2015 will ensure long-term industry-leading mobile satellite voice and data services to Globalstar customers around the world through 2030.

Earlier this year, Globalstar and TAS signed a commercial proposal containing the basic terms for the purchase for these additional Spacecraft. The satellites have a design life of 15 years and will be technically identical to the twenty-four second generation spacecraft Globalstar ordered from TAS under their 2009 contract. The six new satellites will utilize approximately €12 million in Long Lead Items purchased by Globalstar under the previous agreement.

The new contract also provides Globalstar an option to order as many as twenty-four more satellites in the future should consumer demand require additional capacity be added to the Globalstar System.

"This agreement not only secures our current space segment requirements, but it also ensures that Globalstar is uniquely positioned to provide our customers with high quality MSS voice and data services over the long-term," said Jay Monroe, Chairman and CEO of Globalstar. "Once again we would like to thank TAS and the French bank group for their hard work and look forward to continuing our work with them as we move forward with the manufacture and delivery of the additional satellites."

"We are very satisfied to have finalized this negotiation in order to provide this batch of six additional Globalstar satellites to join the constellation", said Emmanuel Grave Executive Vice President Telecommunications for Thales Alenia Space.

The aggregate purchase price of these six spacecraft is €149.9 million, and TAS has committed to begin deliveries 29 months after the close of the financing. Globalstar expects to close the financing for this purchase by year end.

Globalstar is currently completing the launch and deployment of its second-generation satellite constellation. Once the 24 satellites ordered under the 2009 contract with TAS are deployed, Globalstar is expected to once again provide industry-leading voice quality and highly reliable mobile satellite voice and data services to customers around the world. With three launches completed and 18 satellites already in orbit, the Company is making preparations for the fourth launch of six satellites while already experiencing significantly improved levels of services.

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