COVINGTON, La., Oct 3, 2011 (GlobeNewswire via COMTEX) --
Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, government and consumers, today announced that it has placed an order with Thales Alenia Space for an additional six satellites. This is in addition to the 25 satellites already ordered under the 2006 second-generation constellation contract.
According to the terms of the contract these satellites will cost approximately EUR 55 million and should be delivered by mid-2013. The fast track delivery, agreed upon when the contract was signed in 2006, is due to the fact that Globalstar has previously purchased EUR 12 million in long lead items that facilitate the prompt manufacture of these six spacecraft. Additionally, the incremental purchase amount is particularly price competitive due to the fact that Globalstar has already prepaid over EUR 53 million as part of its 2009 COFACE financing. Thus, combined with the EUR 12 million long lead items, Thales has already received approximately EUR 65 million for these satellites. Further payments will not be made until Thales Alenia Space initiates the manufacturing process.
"Notwithstanding the previously announced arbitration proceedings, we look forward to receipt of these satellites for our second-generation constellation," said Jay Monroe, Executive Chairman and CEO of Globalstar, Inc. "This is a complicated project and we value Thales's ability to deliver on time and on budget."
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT family of mobile satellite consumer products including the SPOT Satellite GPS Messenger(TM) and flexible airtime service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational consumers. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. All SPOT products described in Globalstar or SPOT LLC press releases are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
The Globalstar, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8183
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, "According to the terms of the contract these satellites will cost approximately EUR 55 million and should be delivered by mid-2013," that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including demand for our products and services, including commercial acceptance of our new Simplex products, including the SPOT Satellite GPS Messenger; problems relating to the ground-based facilities operated by us or by independent gateway operators; the pace and effects of industry consolidation; changes in technology; our ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Globalstar, Inc.
CONTACT: Globalstar, Inc.