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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (4757)	5/20/1999 8:03:00 AM
From: Jeff Vayda	Read Replies (1) \| Respond to of 29987

Loral/Globalstar Shareholder Meeting Notes (copied to Loral thread) ((Post 4737 gives an good accounting of the questions/answers)) Everyone got a Loral/Globalstar hat - big deal, I wanted a shirt! Oh well, the Soyuz shirt I wore, sure stood out in the crowd (or maybe it was the jeans?) (Thanks for the Soyuz shirt) Random Notes: All management proposals passed (no surprise there) The request for an Additional 20 million preferred at Loral had 40 of the 200 million opposed. (I guess we will have to wait to find out who the gift is for.) Bernie had some introductory comments. He stressed the 'convergence' position Loral was seeking in the market of integrated multimedia companies. He pushed the 'complementary' nature of Globalstar to the existing telephone infrastructure. Several times in the remarks, he commented that G* has done the research and learned from Iridium, that they have a large commitment to market research. He pointedly commented on the current launch infrastructure and that the government has lagged behind in its Range modernization commitments. Globalstar: All sats 'exceeding' expectations. Call quality 'exceeds' industry standards. 30K phones at start, 120K at year end, 300K 'open' production order. Expect ramp up to 40K phones/month by year end (Greater on second order) but no word on how fast the ramp up could be, or when the second order could be placed. He stated a couple times that he has personally gone to the manufacturers and pushed for increased activity ramp up, volume and advertising). For an example Bernie commented that Ericson told him they dont do anything until 90 days before service start. Nine ground stations up and supporting. By March 2000, 70% of the market will be covered. Net profitability in 2000. Business plan: 40% capacity in 2002 is conservative. Plan to max out the system in 2003/4. Bernie worked at changing the metric from 'subscribers' to 'minutes sold' Service Providers might not release the number of subscribers to G* , but G* will be able to tell the minutes used and will report those. I asked about second generation, they will take a look at the situation in 2002. (So what are those extra satellites they are buying for?) No word on the type or timing of the financing. Globalstar phone call from San Diego (Qualcomm). Missed the guys name (Gerry ?) Quality was fine, dont know how much the PA system in the hall effected things. Time delay was much less than a second. Phone is huge. Impressions: G* Service Providers are savy phone marketing concerns. I think they are not pushing the first phone order cause they know the second generation phones will be quite an improvement. The current phone is too big. To sell, Globalstar must be "featured", not an option. By that I mean people will buy because it is a Globalstar phone not because it has an option like 26 different ring tones. I hope that the next generation phones will have Globalstar as a option. The phone is too big to be your everyday phone unless you need the Globalstar feature. Loral: Orion III loss will keep the loss next year at approx $1.10 /share. Nothing new there. He did say that G* and Cyberstar results will be 'huge' at the end of fiscal 2000 and 'all' businesses will be profitable. Cyberstar has become a - get the customers on current assets, then if demand requires, we will build some dedicated birds. Made the comment it would take 15 million to reconfigure China Sat 8 to another customer. That seems to be a pretty specific number to mention at a shareholders meeting - one which I dont think you come to or even bother with unless you have identified another customer. Might they be thinking to configure China Sat 8 to use in an Loral Alliance company? Overall it was nice to get the chance to put some faces on some contacts. Meet some nice folks and got the chance to chat. Thanks to Mike Smith (and his fiancee) for helping out this Southern Boy on his first trip to the Big Apple. The trip was much more enjoyable due to their efforts. Jeff Vayda

To: Maurice Winn who wrote (4757)	5/20/1999 6:32:00 PM
From: Oliver Schonrock	Read Replies (1) \| Respond to of 29987

Maurice Will get back to you on pricing...your line not mine :-) Speaking of Iridium advertising, it amazes me that there still doing it. Was sitting on a flight from NZ to Sydney last week and found a two page fold out ad and tear out info request form in the in flight magazine. Was sitting next to my colleague who knows almost nothing about such things, but he did know that Iridium's handsets were huge & ugly (couldn't tell from the ad) and the that the per minute cost (not quoted either of course) was ridiculous. Moral of the story is...if you have a shit product that is totally uncompetitive, you can adverise it as much as you like using ten million dollar campaigns from Satchie & Satchie...it wont help, and once this depressing image has formed in your target customer's mind, it's hard to change. On this point, Maurice, you are definitely correct about starting price/minute. It's just a question of what price will prevent that image developing...US $1.00/minute (retail), US $0.50, US $0.25/minute, US $0.10/minute (no longer profitable in the long run, which is scary for those conservative managers)... I think you're also right about G* not adopting your scheme, at least not on constellation 1, so let's hope the SPs are right with their arrogance/"market research" (yuk!) of a US $1.00/minute starting price. Oliver