OT --Loral Completes Purchase of 4.2 Million Globalstar Partnership Interests
Soros Funds Buy 8,400,000 Shares of Globalstar
NEW YORK--(BUSINESS WIRE)--July 6, 1998-- Loral Space & Communications (NYSE:LOR - news) announced today
that it has closed its purchase of 4,200,000 partnership interests of Globalstar Limited Partnership from founding service
provider partners DACOM, Daimler-Benz Aerospace, Elsacom, Hyundai, TESAM and Vodafone. As a result, Loral's
ownership in Globalstar Limited Partnership has increased from approximately 38 percent to 42 percent. The partnership
interests, equivalent to 16.8 million shares of Globalstar Telecommunications Limited (Globalstar --NASDAQ:GSTRF), were
purchased at a price of $100 per partnership interest (corresponding to $25 per share of Globalstar stock). Half of the total
sale proceeds, $210 million, have been deposited into an escrow account to fund the purchase of Globalstar gateways and user
terminals by the founding service provider partners.
In a separate but related transaction, Loral sold today to three Soros funds an aggregate of 8,400,000 shares of Globalstar
stock at a purchase price of $29 1/6 per share, representing one-half of the amount of equivalent Globalstar shares acquired by
Loral in connection with the purchase of Globalstar partnership interests, described above. The shares purchased by the Soros
funds are restricted and may not be sold without registration. Globalstar, however, has agreed to provide a shelf-registration for
these shares to be effective by July 6, 1999. The transaction results in the Soros funds having acquired an approximately 4
percent indirect interest in Globalstar Limited Partnership.
''These transactions benefit all parties involved,'' stated Bernard L. Schwartz, chairman and chief executive officer of both
Loral and Globalstar. ''Our founding service provider partners maintain a significant interest in Globalstar while taking
advantage of an opportunity to realize earlier-than-expected gains on a portion of their initial investments in this venture.
Second, Loral has been able to increase its equity ownership in Globalstar to 42 percent. In addition, Globalstar benefits
strategically by the addition of the Soros funds as a strong new shareholder with an international scope.'' Globalstar, led by
Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment
manufacturers, and includes Qualcomm Inc. [Nasdaq:QCOM - news], AirTouch Communications, Alcatel, Alenia, China
Telecom, DACOM, Daimler-Benz Aerospace, Elsacom, a Finmeccanica/Elsag Bailey Company, France Telecom
[NYSE:FTE - news], Hyundai, Space Systems/Loral and Vodafone. For more information, visit Globalstar's web site at
globalstar.com.
Loral Space & Communications (NYSE:LOR - news) is a high-technology company that primarily concentrates on satellite
manufacturing and satellite-based services, including broadcast transponder leasing and value added services, domestic and
international corporate data networks, global wireless telephony, broadband data transmission and formatting, Internet
connectivity, digital audio radio services, and international direct-to-home satellite services. For more information, visit Loral's
web site at loral.com.
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