Globalstar Americas Signs Distribution Agreement With CellStar
www.cellstar.com
Agreement Covers Satellite-Based Communications Service in Central America
CARROLLTON, Texas, July 15 /PRNewswire/ -- CellStar Corporation (Nasdaq: CLST - news) today announced that it
has completed an agreement to distribute wireless handsets, fixed terminals, and accessories for Globalstar Americas Corp.,
the Globalstar satellite communications licensee that will serve the seven countries of Central America: Belize, Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua and Panama.
Under the three-year agreement, CellStar will also provide procurement, assembly, programming, fulfillment, packaging and
returns management services for Globalstar in the seven countries. As one of the world's premier value- added
telecommunications distributors, CellStar has the expertise to implement efficient and cost-effective processes. CellStar will
support Globalstar Americas with its new global inventory management and information technology systems, as well as its
best-of-class distribution capabilities. CellStar also plans to provide an activation data interface to track the growth of
subscribers in the region.
CellStar will distribute Globalstar-compatible wireless phones manufactured by Qualcomm for Globalstar Americas.
Globalstar Americas Corp. is scheduled to launch commercial service in the first quarter of 2000 in Central America.
The Globalstar system will provide high quality, affordable mobile satellite voice, fax, and data service via a small hand-held
phone. The multi-mode phone will operate in traditional cellular modes (using the local cellular network), or satellite mode
when beyond cellular coverage. When in satellite mode, the phone will communicate with one of 48 Globalstar satellites
circling the earth which will relay the signal back down to the nearest earth station and inter-connect to the local telephone
system (PSTN) or private networks.
Globalstar, led by Loral Space & Communications, is a partnership of the world's leading telecommunications service
providers and equipment manufacturers, including Qualcomm Incorporated, Alcatel, Alenia, China Telecom (HK),
DACOM, Daimler-Benz Aerospace, Elsag Bailey, France Telecom, Space Systems/Loral and Vodafone. Globalstar,
through its strategic partnerships, has service provider agreements in more than 100 countries. To date, Globalstar service
providers have been awarded licenses in about 32 countries.
CellStar Corporation is a global company focused on providing value-added services to wireless carriers and manufacturers
in direct relationships. CellStar is one of the world's largest non-carrier wholesale distributors of wireless handsets for major
manufacturers, with operations in North America, the Asia-Pacific Region, Latin America and Europe. For the year ended
November 30, 1998, the Company reported sales of approximately $2 billion. Additional information about CellStar may be
found on its web site at www.cellstar.com.
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A
variety of risk factors, including changes in foreign laws, regulations and tariffs, new technologies, system implementation
difficulties, competition and other risk factors, are discussed in the Company's Annual Report on Form 10-K and most
recent Quarterly Report on Form 10-Q, which are on file with the SEC. Any combination of these could cause CellStar's
actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking
statements.
SOURCE: CellStar Corporation |
