Following post on Yahoo appears genuine...can anyone confirm? Note the reference to Loral's investment and statement that it "will advance an additional
$500 million shortly in relation to a bank loan it had guaranteed." Not surprising, but the first time it's been acknowledged officially-again, assuming the post is legit.
messages.yahoo.com
November 6, 2000
To: All Globalstar Customers, Service Providers and Distributors
Some customers and distributors have been concerned by recent news reports on the future of Globalstar and on Loral's
commitment to Globalstar. In particular, an article in the Wall Street Journal early this week mischaracterized comments
made in an interview, and drew conclusions not indicated or intended by the company. I want to take this opportunity to
set the record straight.
Loral's support for Globalstar today remains unchanged. Globalstar continues to be an important investment for Loral and
the Globalstar partners, and we remain committed to supporting its roll-out.
Recent acceleration of our marketing activities, the strengthening of our Globalstar sales organization and increased
product development efforts have resulted in early results that are most promising. In parallel with our service providers'
efforts to capture the consumer market, Globalstar's newly fortified, concentration on industrial and government vertical
markets, together with new promotional pricing initiatives, have brought promising early results in terms of sales and
product recognition. Of perhaps even greater potential are the inroads made by both Globalstar and Qualcomm in the
development and deployment of data services relying on the Globalstar system, for example in aviation applications.
The objective of our recent financings was to put sufficient resources in place now to allow Globalstar to continue the
deployment of its service through May 2001 at which time Globalstar is expected to have proven its viability, allowing it
to fund itself further as required. Loral has invested nearly $1 billion in Globalstar to date, and will advance an additional
$500 million shortly in relation to a bank loan it had guaranteed. Globalstar service providers and partners are proceeding
on a fully committed basis and are building their organizations and increasing their product development, marketing and
advertising activities. Most recently, Loral and four other Globalstar partners together invested a further $56 million in the
business - clearly, a tangible act of confidence in and support for Globalstar.
Of prime importance is the excellent performance of the Globalstar system, a unique independent asset of great value -
the only constellation of satellites offering CDMA-based service for voice and data applications. Loral will continue to
review Globalstar's business progress, and will provide ongoing leadership, guidance, support, and marketing assistance.
While it is clear that the take-up of service has been slower than we expected, it is equally clear that Globalstar, today, is
offering an important, valuable service to many individuals and businesses around the world. Loral, along with its partners,
has every confidence that our efforts will ensure success.
Sincerely,
Bernard L. Schwartz
Chairman and Chief Executive Officer |
