Globalstar Announces Results for Third Quarter 2012

Globalstar Announces Results for Third Quarter 2012

  *Reports fourth consecutive quarter of positive Adjusted EBITDA; $6.6
    million improvement compared to the third quarter of 2011
  *Initiates fourth launch campaign with launch scheduled in February 2013
  *Successfully uploaded software patch to second-generation satellite as
    satellite begins preliminary service – all other previously launched
    second-generation satellites in service
  *Signed agreement with Thales Alenia Space ("Thales") for the purchase of
    six additional second-generation satellites
  *Filed Petition for Rulemaking with the Federal Communications Commission
    ("FCC") on November 13th

COVINGTON, La., Nov. 14, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc.
(Nasdaq:GSAT) today announced its financial results for the three-month period
ended September 30, 2012.


"Globalstar made significant operational and financial progress over the
quarter and throughout the last year as demonstrated by the substantial
improvement in the Company's operating results," said Jay Monroe, Chairman and
CEO of Globalstar, Inc. "We continue to see consecutive quarter over quarter
growth in Adjusted EBITDA even prior to the full restoration of our
constellation. The increases experienced during 2012 exemplify the benefits of
our cost improvement initiatives, while leveraging improved coverage rates as
our constellation continues to be deployed. We are particularly pleased with
the growth in our Duplex service revenue during 2012 and expect this trend to
continue as we complete the deployment of our second-generation constellation.
Our customers are enjoying improved service quality, usage on the system has
grown significantly and we are encouraged by the continued migration of our
duplex customers to higher rate plans."


Revenue was $20.5 million for the third quarter of 2012 compared to $18.2
million for the third quarter of 2011, an increase of approximately $2.3
million, or 13%. Growth in service revenue and subscriber equipment sales
accounted for $1.1 million and $1.2 million of the increase, respectively.

Service revenue was $15.3 million for the third quarter of 2012 compared to
$14.2 million for the third quarter of 2011. The primary driver for the
increase in service revenue was SPOT service revenue, which grew by $1.6
million, or 33%, for the three months ended September 30, 2012 compared to the
three months ended September 30, 2011. Consistent with patterns to date this
year, Duplex service revenue was slightly lower in the third quarter of 2012
compared to the same period in 2011, but increased by approximately 11%
compared to the second quarter of 2012. The sequential increase in Duplex
service revenue quarter over quarter is due primarily to improvements in call
connection rates and the impact of subscriber upgrades to higher revenue

Subscriber equipment sales were $5.2 million for the third quarter of 2012
compared to $4.0 million for the third quarter of 2011. Simplex equipment
sales increased 85% due to the expanding applications of the Company's
low-cost M2M asset tracking and monitoring devices. Duplex equipment sales
increased 164% as subscribers have begun to once again rely upon Globalstar's
voice and data service offerings, recognizing their competitive advantages
from a cost and performance perspective. These increases were offset by
decreases in SPOT equipment sales due to unusually high sales volumes in the
third quarter of 2011 resulting from the release of new SPOT products in 2011.

Adjusted EBITDA

Globalstar reported Adjusted EBITDA of $3.1 million for the three months ended
September 30, 2012 compared to negative Adjusted EBITDA of $3.5 million for
the third quarter 2011. This represented an increase of $6.6 million over the
third quarter of 2011. The improvement in Adjusted EBITDA resulted from an
increase in revenue of $2.4 million and a decrease in operating expenses of
$5.4 million (excluding EBITDA adjustments^[1]). The decrease of approximately
29% in operating expenses was due largely to the implementation of operational
improvements and streamlining initiatives introduced in late 2011. The Company
reported expense reductions in the quarter throughout all of its major
operating areas. Year to date 2012 Adjusted EBITDA is $7.3 million, an
improvement of $15.4 million over the same period in 2011.

Net Loss

The Company reported a net loss of $41.2 million for the three months ended
September 30, 2012 compared to a net loss of $0.7 million for the third
quarter of 2011. This loss was due primarily to the impact of non-cash
derivative gains and losses in the third quarter of 2012 compared to the third
quarter of 2011 and an increase in depreciation expense as the Company placed
into service additional second-generation satellites during the last 12


During and immediately following the quarter, the Company also reported the
following accomplishments:


  *In mid-October 2012, the Company, in partnership with Thales, successfully
    uploaded a software patch to remedy a momentum wheel issue on one of its
    second-generation satellites. This satellite has now begun to process call
    traffic and Globalstar's satellite operations team anticipates this
    satellite to be placed back into full service by the end of November. All
    other second-generation satellites are already providing full high-quality
    Duplex service.
  *Globalstar and Arianespace initiated the campaign for the fourth launch of
    six satellites scheduled for February 2013.Four of the six satellites
    have arrived at the Baikonur Cosmodrome and launch preparations are
  *The Company and satellite manufacturer Thales announced the signing of a
    contract for the manufacture and delivery of six additional satellites for
    the Globalstar second-generation constellation. These satellites, which
    are subject to financing, are expected to be delivered and launched in
    2015. They will augment the first 24 second-generation satellites, of
    which the final six satellites are scheduled to be launched in February
    2013, and will continue to ensure long-term industry-leading mobile
    satellite voice and data services to Globalstar customers around the


  *The Company announced on November 13, 2012 that it filed a Petition for
    Rulemaking with the FCC to obtain the regulatory flexibility necessary to
    use its licensed Mobile Satellite Services ("MSS") spectrum terrestrially
    to support mobile broadband applications throughout the U.S.
  *In its petition, Globalstar proposes pro-investment, pro-consumer reforms
    that will enable it to make the kind of innovative, efficient use of
    spectrum that the Commission seeks to help meet the growing demand of
    broadband usage in the U.S.

New Head of Global Sales and Marketing

  *In preparation for its re-emergence as the leading provider of affordable
    high quality and highly reliable mobile satellite services, the Company
    appointed Frank J. Bell as President of Global Sales and Marketing for the
    Company effective October 1, 2012.Mr. Bell comes to Globalstar with
    decades of wireless industry experience having held senior executive
    positions for companies such as Sprint and MetroPCS, among others.He is
    responsible for Globalstar's global sales and marketing operations,
    worldwide customer care, international gateway operator (IGO) partners and
    for all aspects of the Company's worldwide revenue growth.

^[1] Refer to the Company's Reconciliation of GAAP Net loss to Adjusted EBITDA
presented later in this release for EBITDA adjustments.

"Our low-cost satellite constellation, the new and truly innovative proposed
spectrum use outlined in the FCC filing yesterday and our pipeline of new
consumer products provide the key value drivers for our business," added
Monroe. "The successful upload of our momentum wheel software solution
provides an added level of assurance that any potential future momentum wheel
problems will not impact the operations of our second-generation
constellation. One year ago, we said we would successfully solve this issue,
and we have.We are proud to have made such progress on our business plan and
look forward to capitalizing on the opportunities inherent in all of our value
drivers as we continue to execute quarter after quarter."

Third Quarter 2012 Conference Call

The earnings conference call scheduled for today, November 14, 2012 at 5:00
p.m. Eastern Time, will discuss the third quarter results for 2012.

Details are as follows:
Earnings Call: November 14, 2012 at 5:00 p.m. ET
              Dial: 888.895.5271 (US and Canada), 847.619.6547
              (International) and confirmation number 33654888
               A replay of the earnings call will be available for a limited
Audio Replay:  time and can be heard after 7:30 p.m. ET on November 14, 2012.
               Dial: 888.843.7419 (US and Canada), 630.652.3042
               (International) and pass code 33654888#

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, flexible airtime service packages
and the SPOT family of mobile satellite consumer products including the SPOT
Satellite GPS Messenger™. 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 users. Globalstar data solutions are ideal for various
asset and personal tracking, data monitoring and SCADA applications.Note that
all SPOT products described in this press release 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.

For more information regarding Globalstar, please visit Globalstar's web site

The Globalstar, Inc. logo is available at

Safe Harbor Language for Globalstar Releases

This press release contains certain statements such as, "We are proud to have
made such progress on our business plan and look forward to capitalizing on
the opportunities inherent in all of our value drivers as we continue to
execute quarter after quarter," 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 our ability to develop and expand
our business, our anticipated capital spending (including for future satellite
procurements and launches), our ability to manage costs, our 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 our industry on us and our competitors, our anticipated
future revenues, our anticipated financial resources, our expectations about
the future operational performance of our satellites (including their
projected operational lives), the expected strength of and growth prospects
for our existing customers and the markets that we serve, commercial
acceptance of our new Simplex products, including our SPOT satellite GPS
messenger ^TM products, problems relating to the ground-based facilities
operated by us or by 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 we undertake no obligation to update
any such statements. Additional information on factors that could influence
our financial results is included in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

(Dollars in thousands, except per share data)
                                             Three Months Ended September 30,
                                             2012              2011
Service revenues                              $15,368         $14,198
Subscriber equipment sales                    5,169            3,989
Total revenue                                 20,537           18,187
Operating expenses:                                            
Cost of services (exclusive of depreciation,
amortization, and accretion shown separately  5,558            8,332
Cost of subscriber equipment sales            4,040            2,871
Cost of subscriber equipment sales -          660              979
reduction in the value of inventory
Marketing, general, and administrative        9,280            12,249
Reduction in the value of long-lived assets   --              3,038
Depreciation, amortization, and accretion     18,654           12,106
Total operating expenses                      38,192           39,575
Loss from operations                          (17,655)         (21,388)
Other income (expense):                                        
Interest income and expense, net of amounts   (6,565)          (1,232)
Derivative gain (loss)                        (16,473)         23,793
Other                                         (439)            (1,876)
Total other income (expense)                  (23,477)         20,685
Loss before income taxes                      (41,132)         (703)
Income tax expense (benefit)                  56               (22)
Net loss                                      $(41,188)       $(681)
Loss per common share:                                         
Basic                                         $(0.10)         $(0.00)
Diluted                                       (0.10)           (0.00)
Weighted-average shares outstanding                            
Basic                                         392,344          295,513
Diluted                                       392,344          295,513

(Dollars in thousands)
                                             Three Months Ended September 30,
                                             2012             2011
Net loss                                      $(41,188)      $(681)
Interest income and expense, net              6,565           1,232
Derivative (gain) loss                        16,473          (23,793)
Income tax expense (benefit)                  56              (22)
Depreciation, amortization, and accretion     18,654          12,106
EBITDA                                        560             (11,158)
Reduction in the value of long-lived assets   660             4,017
and inventory
Stock compensation                            323             455
Research and development                      46              634
Severance                                     (18)            668
Foreign exchange and other loss               439             1,876
Thales arbitration expenses                   224             --
Write off of deferred financing costs         833             --
Adjusted EBITDA (1)                           $3,067         $(3,508)

(1) EBITDA represents earnings before interest, income taxes, depreciation,
amortization, accretion and derivative (gains)/losses.Adjusted EBITDA
excludes non-cash compensation expense, reduction in the value of assets,
foreign exchange (gains)/losses, R&D costs associated with the development of
new consumer products, and certain other significant charges.Management uses
Adjusted EBITDA in order to manage the Company's business and to compare its
results more closely to the results of its peers. EBITDA and Adjusted EBITDA
do not represent and should not be considered as alternatives to GAAP
measurements, such as net income. These terms, as defined by us, may not be
comparable to a similarly titled measures used by other companies.

The Company uses Adjusted EBITDA as a supplemental measurement of its
operating performance because, by eliminating interest, taxes and the non-cash
items of depreciation and amortization, the Company believes it best reflects
changes across time in the Company's performance, including the effects of
pricing, cost control and other operational decisions.The Company's
management uses Adjusted EBITDA for planning purposes, including the
preparation of its annual operating budget.The Company believes that
Adjusted EBITDA also is useful to investors because it is frequently used by
securities analysts, investors and other interested parties in their
evaluation of companies in similar industries. As indicated, Adjusted EBITDA
does not include interest expense on borrowed money or depreciation expense on
our capital assets or the payment of income taxes, which are necessary
elements of the Company's operations.Because Adjusted EBITDA does not
account for these expenses, its utility as a measure of the Company's
operating performance has material limitations.Because of these limitations,
the Company's management does not view Adjusted EBITDA in isolation and also
uses other measurements, such as net income, revenues and operating profit, to
measure operating performance.

(Dollars in thousands, except subscriber and ARPU)
                   Three Months Ended September 30,
                   2012                2011
                   Service   Equipment Service   Equipment
Duplex              $4,993  $899    $5,154  $341
SPOT                6,552    1,300    4,941    2,040
Simplex             1,690    2,429    1,555    1,312
IGO                 199      355      434      338
Other               1,934    186      2,114    (42)
                   $15,368 $5,169  $14,198 $3,989
Average Subscribers                            
Duplex              87,819            93,516   
SPOT                231,310           185,903  
Simplex             173,781           130,259  
IGO                 41,567            48,106   
ARPU (1)                                       
Duplex              $18.95           $18.37  
SPOT                9.44              8.86     
Simplex             3.24              3.98     
IGO                 1.60              3.01     

(1) Average monthly revenue per user (ARPU) measures service revenues per
month divided by the average number of subscribers during that month.Average
monthly revenue per user as so defined may not be similar to average monthly
revenue per unit as defined by other companies in the Company's industry, is
not a measurement under GAAP and should be considered in addition to, but not
as a substitute for, the information contained in the Company's statement of
income.The Company believes that average monthly revenue per unit provides
useful information concerning the appeal of its rate plans and service
offerings and its performance in attracting and retaining high value

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

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