Globalstar De Mexico And Iusacell Form Alliance

Globalstar De Mexico And Iusacell Form

February 14, 2000


Francisco Soroa,

MEXICO CITY -- Globalstar de Mexico and leading Mexican cellular provider Nuevo Grupo Iusacell, S.A. de C.V. (NYSE:CEL; BMV:CEL), today announced an alliance whereby Iusacell will market Globalstar mobile satellite telephone products and services in Mexico.

Under the terms of this agreement, Iusacell will offer existing and potential customers a combined service that uses land-based digital CDMA (Code Division Multiple Access) technology within Iusacell's cellular coverage area and Globalstar satellite telephony where cellular coverage is unavailable.

Iusacell's existing customers who acquire Globalstar service will be able to keep their current cellular phone numbers, contracts, and tariffs, but will also be able to place and receive calls from virtually anywhere through satellite coverage. Iusacell will also provide Globalstar with certain administrative services.

"This is a very important step towards the establishment of the Globalstar de Mexico distributionnetwork. Our alliance with Iusacell allows us to come closer to end-users and in particular, to those customers that will benefit the most from our technology and commercial plans. This agreement clearly reflects the great benefits of satellite telephony, which is aimed at complementing existing technologies that will give people in Mexico and the rest of the world the advantages of a communications system without boundaries," said Lauro Gonzalez, chief executive officer of Globalstar de Mexico.

Iusacell's President and Director General, Fulvio V. Del Valle said, "Strategic agreements with top tier technology companies such as Globalstar reinforce our commitment to leadership and competitiveness in Mexico, allowing us to continue offering our users value added, best quality and state-of-the-art communications."

Commenting on the advantages and benefits to Iusacell customers, Amaury L. Rivera, vice president of marketing for Iusacell said, "Globalstar will extend our coverage to those areas that are currently lacking a means of communication through the use of mobile and fixed Globalstar equipment. These systems will be cellular or satellite depending on the coverage available in a particular area. The Globalstar systems are tri-mode, and they provide CDMA, analog, and digital satellite transmissions in a single terminal unit."

Nuevo Grupo Iusacell, S.A. de C.V. (NYSE: CEL; BMV: CEL), or New Iusacell, was organized as a limited liability stock company under the laws of Mexico on August 6, 1998. As a result of the exchange offer completed in August 1999, New Iusacell holds substantially all of the capital stock of Grupo Iusacell, S.A. de C.V. (Old Iusacell).

Grupo Iusacell, S.A. de C.V. (NYSE: CEL.Y; BMV: IUSACEL) (Old Iusacell) is a leading independent telecommunications company in Mexico. It provides wireless cellular service in four of Mexico's nine regions in the central portion of Mexico (including Mexico City) covering a total of 67 million POPs, representing approximately 69% of the country's total population. New Iusacell and Old Iusacell have been under the management and operating control of subsidiaries of Bell Atlantic Corporation. For more information on Iusacell, visit the company's Internet site at www.iusacell.com.mx.

Through its alliance with Globalstar, new Iusacell is also an authorized distributor of satellite communications systems that offer cellular and satellite coverage in a single unit.

Globalstar de Meixco, founded in 1996, is a joint venture between the Mexican holding company Principia, S. de R.L., Loral Space & Communications and Vodafone AirTouch. For more information on the Globalstar system, please visit their web site For specific information on products available through Iusacell, contact any Iusacell distributor or the Globalstar de Mexico office at +52 (5) 140 40 15.

Principia is a leading Mexican telecommunications holding company that is majority owned by the Autrey family and Mr. Lauro Gonzalez. In 1997, Principia and Loral Space & Communications were selected to acquire 75 percent of Satmex in connection with the privatization of Mexico's fixed satellite services. Besides its participation in Globalstar de Mexico and Satmex, Principia also owns Optel Telecomunicaciones, a public data network that provides telecom solutions in 17 cities throughout Mexico, as well as connectivity to the Global One worldwide network.

Vodafone AirTouch is the world's largest wireless service provider. The company operates in 24 major countries throughout the 5 continents, with over 28 millions cellular clients. Vodafone AirTouch provides Globalstar telephony in 15 countries in North America, Europe, Australia, Mexico and South Africa. Vodafone AirTouch holds an approximate eight percent stake at Globalstar Limited group. For more information on Vodafone AirTouch Plc., visit their web site at www.vodafone_airtouch_plc.com.

Loral Space & Communications (NYSE:LOR) 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 content services, Internet services, and international direct-to-home satellite services.