updated 6/21/2011 9:16:56 AM ET 2011-06-21T13:16:56

COVINGTON, La., June 21, 2011 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, government, and recreational consumers today announced that it has completed a private placement with select current institutional investors including Thermo Funding Company LLC, to raise initial gross proceeds of $38 million, before deducting fees and other offering expenses. Additionally, investors have the option to invest up to an incremental $12 million over an approximate three month period on the same principal terms. Lazard Capital Markets LLC served as the sole placement agent.

Under the terms of the transaction, Globalstar issued $38 million in principal amount of 5% Convertible Senior Unsecured Notes. Investors will also receive warrants to purchase an aggregate of 15.2 million shares of common stock. The notes will be convertible at a price of $1.25 per share and are guaranteed on a subordinated basis by certain domestic subsidiaries of Globalstar. The warrants will be exercisable until five years from the date of issuance at an exercise price of $1.25 per share.  Globalstar's controlling stockholder has entered into a voting agreement to vote in favor of this transaction. The Company is also required to file a registration statement with the Securities and Exchange Commission to permit the resale of the securities and the underlying shares of common stock.

"We are very pleased to announce this financing which was fully subscribed by current Globalstar investors," said Jay Monroe, Executive Chairman of Globalstar, Inc. "As we continue with final preparations for next month's launch of six new second-generation satellites, the investment associated with this capital raise once again demonstrates the continued confidence our investors have in Globalstar and our long-term future."

Proceeds of this financing are expected to be used to meet the Company's capital expenditure needs, including the procuring and deploying its second-generation constellation and other operating costs.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Securities Act and applicable state securities laws.

About Globalstar, Inc.

Globalstar is a leading provider of mobile satellite voice and data services.  Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT family of mobile satellite consumer products including the SPOT Satellite GPS Messenger™ and flexible airtime service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational consumers. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.  All SPOT products described in Globalstar or SPOT LLC press releases are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.

The Globalstar, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8183

For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com

Safe Harbor Language for Globalstar Releases

This press release contains certain statements such as, "Proceeds of this financing are expected to be used to meet the Company's capital expenditure needs, including the procuring and deploying its second-generation constellation and other operating costs.," that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding the Company's ability to develop and expand its business, its anticipated capital spending (including for future satellite procurements and launches), its ability to manage costs, its ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in its industry on the Company and its competitors, its anticipated future revenues, its anticipated financial resources, its expectations about the future operational performance of its satellites (including their projected operational lives), the expected strength of and growth prospects for the Company's existing customers and the markets that it serve, commercial acceptance of its new Simplex products, including its SPOT satellite GPS messenger TM products, problems relating to the ground-based facilities operated by the Company or its independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this release regarding matters that are not historical facts, involve predictions.

Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Globalstar undertakes no obligation to update any such statements. Additional information on factors that could influence the Company's financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

CONTACT: For further media information:
         Globalstar, Inc.
         Dean Hirasawa
         (985) 335-1505
         Dean.hirasawa@globalstar.com

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