Subject: [NEXTEL-1] McCaw's ICO Global to Take Majority Stake in Globalstar

From: Marcel <[email-masked]>
Date: Tue, 29 Apr 2003 17:33:54 -0400

McCaw's ICO Global to Take Majority Stake in Globalstar

In a $55 million deal approved late Friday by the U.S. Bankruptcy Court in
Delaware, wireless pioneer Craig McCaw's ICO Global Communications Ltd.
will take a 54 percent interest in satellite phone service provider Globalstar
Communications. "Approximately $12 billion has now been spent for mobile
satellite communications and hand-held devices.

The numerous bankruptcies throughout the industry have been indicative
of the risks associated with providing innovative new services and the failure,
to date, of mobile satellite service (MSS)," said McCaw, who is chairman of ICO Global.
"We believe that the $4 billion spent thus far on Globalstar, however, will
result in useful services for governments, corporations and communities
around the world. We like the Globalstar system architecture and see this as
a turning point for the MSSindustry and for Globalstar in particular."

Globalstar has 52 satellites aloft, and 80,000 to 88, 000 customers.
Most recently, due to demand, Globalstar has expanded in coverage in
the Middle East.  The remaining interest in Globalstar
will be distributed to its creditors, which include Loral Space &
Communications, Qualcomm Inc. and holders of Globalstar L.P. bonds.

In the weeks ahead, Globalstar will file a plan of reorganization with the bankruptcy
court, and expects to complete its Chapter 11 process later this year.

==========================================================================================

U.K. firm nabs Globalstar majority stake
By Ben Charny
Staff Writer, CNET News.com
April 28, 2003, 3:38 PM PT
http://news.com.com/2100-1036-998635.html

Cellular pioneer Craig McCaw's ICO Global Communications has been awarded a majority stake
in satellite phone service provider Globalstar Communications.

The U.S. Bankruptcy Court in Delaware awarded ICO a 54 percent stake of Globalstar on late
Friday. The transfer will only take place, however, if ICO makes a $55 million investment in the company. U.K.-based ICO was
one of several bidders for Globalstar's assets after the U.S. satellite phone service provider filed for bankruptcy protection in
November 2001.

Satellite phone companies were launched with much fanfare in the 1990s, but have since
become symbols of billion-dollar investments gone bad. Though satellite phone customers rarely experience the dropped calls
or lost e-mail that cell phone customers complain of, the comparatively bulky handsets and expensive calls--about $6 a
minute at the time--kept many people from choosing satellite service.

Globalstar and its major competitor Iridium have both filed for bankruptcy and re-emerged
under new ownership. One of the first things each did was to reduce the selling price of its phone equipment and to cut call
rates to under $1 a minute.

"The numerous bankruptcies throughout the industry have been indicative of the risks
associated with providing innovative new services and the failure, to date, of mobile satellite service," ICO Chairman McCaw said
in a statement.

Major Globalstar creditors Loral Space & Communications, Qualcomm and other bondholders
will own the balance of Globalstar, ICO spokesman Todd Wolfenbarger said.

San Jose, Calif.-based Globalstar, which has 80,000 subscribers, becomes the second
satellite phone company with a large stake held by ICO. The other is Teledesic, based in Bellevue, Wash., which has yet to launch a
commercial service and has significantly reduced its work force. Teledesic investors include Microsoft co-founder Bill Gates and
Motorola.

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