Globalstar Announces 2012 Fourth Quarter and Annual Results

Globalstar Announces 2012 Fourth Quarter and Annual Results

  *Year-over-year Adjusted EBITDA improved by $16.2 million
  *Total revenue increased 10% in fourth quarter and 5% in 2012 from prior
    year periods
  *Concluded fourth launch campaign with successful launch of additional
    second-generation satellites on February 6, 2013
  *Completed comment cycle for Petition for Rulemaking with the Federal
    Communications Commission ("FCC") in January 2013

COVINGTON, La., March 14, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc.
(OTCBB:GSAT) today announced its financial results for the three-month and
twelve-month periods ended December 31, 2012.


Jay Monroe, Chairman and CEO of Globalstar, commented, "We recorded our fifth
consecutive quarter of positive Adjusted EBITDA, driving profitability
improvement in a seasonally slow quarter. By leveraging operational
improvements, which have been our focus during the launch of our
second-generation constellation, we are turning the corner financially. We are
now well positioned to drive further profitability as we complete the
deployment of the world's first Low Earth Orbit second-generation
constellation and complete the restoration of our industry leading Duplex
service. Globalstar is now ready to reclaim its position as the world's
leading provider of global Mobile Satellite Services ("MSS") to consumer,
public safety, government and enterprise customers. We are extremely proud of
all we have accomplished this past year."


Revenue was $19.1 million for the fourth quarter of 2012 compared to $17.4
million for the fourth quarter of 2011, an increase of approximately $1.7
million, or 10%. This increase was due primarily to higher service revenue
resulting from growth in the Company's average SPOT subscriber base of 21%.

Service revenue was $15.3 million for the fourth quarter of 2012 compared to
$13.6 million for the fourth quarter of 2011. The primary driver for this
increase was from the SPOT business, which grew service revenue by $1.1
million, or 20%. Duplex service revenue and Simplex service revenue also
increased 14% and 18%, respectively. The improvement in Duplex service revenue
was driven by an increase in ARPU to $18.49, an improvement of 23% over the
fourth quarter of 2011. Driving this increase was the significant improvement
in Globalstar's network performance, which supported higher subscriber rate
plans and increased usage throughout 2012.

Subscriber equipment sales were relatively flat for the fourth quarter of 2012
compared to the fourth quarter of 2011. Duplex and Simplex equipment sales
increased slightly, while sales of SPOT equipment decreased due to higher
demand in 2011 from certain product releases early in that year.

Net Loss

The Company reported a net loss of $19.0 million for the three months ended
December 31, 2012 compared to a net loss of $33.7 million for the fourth
quarter of 2011. This improvement was due primarily to the impact of non-cash
derivative gains in the fourth quarter of 2012 compared to losses in the
fourth quarter of 2011, offset by an increase in depreciation expense as the
Company placed additional satellites into service throughout 2012.

Adjusted EBITDA

Adjusted EBITDA was $2.5 million for the three months ended December 31, 2012
compared to $1.6 million for the fourth quarter of 2011. The improvement in
Adjusted EBITDA resulted from an increase in revenue, partially offset by an
increase in operating expenses (excluding EBITDA adjustments^1) as the Company
prepared for the FCC regulatory process and invested in sales and marketing


Since October 1, 2012, Globalstar achieved the following:


  *Successfully completed the fourth launch campaign for additional
    second-generation satellites on February 6, 2013 with its launch services
    provider, Arianespace. Throughout 2012, Globalstar placed all previously
    launched second-generation satellites into commercial service. The
    improved service levels helped increase total Duplex minutes of use for
    the year by 17%.
  *Completed the initial in-orbit systems performance review for all
    satellites launched in February and placed the first two satellites into
    commercial service in March. The remaining satellites are expected to be
    placed into service over the next few months.

Regulatory Reform for Terrestrial Authority

  *On November 13, 2012, Globalstar filed a Petition for Rulemaking with the
    FCC to obtain the regulatory flexibility necessary to use the Company's
    licensed MSS spectrum terrestrially to support mobile broadband
    applications throughout the United States. The FCC received public comment
    on the petition in January.
  *Globalstar sponsored a well-attended webinar regarding the benefits of its
    Terrestrial Low Power Service, entitled "Globalstar's New "Wi-Fi" Super
    Highway," where the Company discussed the significant consumer benefits of
    its unique technological capabilities.


Results of Operations

Revenue increased 5% to $76.3 million during 2012 compared to $72.8 million
for 2011. Service revenue for 2012 increased 4% to $57.5 million compared to
$55.4 million in 2011. Excluding one-time nonrecurring revenue of $2.0 million
recognized in the first quarter of 2011 from the termination of Globalstar's
Open Range agreement, service revenue increased 8% or $4.1 million. Net loss
increased $57.3 million during 2012 to $112.2 million due primarily to
non-cash items, including a reduction in derivative gains and an increase in
depreciation expense, as well as an accrual for a contract termination charge
and an increase in interest expense. Adjusted EBITDA during 2012 was $9.8
million, an improvement of $16.2 million from 2011. This improvement was due
to a combination of growth in both service and equipment revenue, as well as
reductions in the Company's operating costs. Globalstar continues to benefit
from lower operating costs largely as a result of the implementation of
operational improvement initiatives in late 2011.


The holders of the Company's 5.75% Convertible Senior Notes ("5.75% Notes")
have the right to surrender their 5.75% Notes for purchase by Globalstar on
April 1, 2013 at an aggregate purchase price of $71.8 million, payable in
cash. Globalstar currently lacks the liquidity to purchase the 5.75% Notes if
they are tendered for purchase. Globalstar is currently negotiating with the
note holders to restructure the terms of the 5.75% Notes, but the resolution
of this matter is uncertain.

Mr. Monroe concluded, "With the full deployment of our second-generation
constellation and our FCC Petition for Rulemaking progressing without
significant opposition, this year we are focusing on maximizing the value of
the Company's satellite and spectrum assets. The process of launching our
second-generation satellites is behind us, and we are placing greater focus
and investing additional resources toward our sales and marketing efforts to
support the roll-out of several exciting new consumer and commercial products
as well as Duplex's return to full service. On March 1st, we adopted new
service plans that recalibrate our pricing as Duplex is reintroduced while
preserving the sharply favorable cost savings and enhanced value proposition
that this service offers relative to competitors. We will also look forward to
working with the FCC and seeing the spectrum rulemaking process through to
completion. Our strategic goal for 2013 is to exit the year with increasing
momentum in our financial results, propelled by Duplex, to drive further
growth in 2014 and beyond."

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

Fourth Quarter 2012 Conference Call

The earnings conference call scheduled for today, March 14, 2013 at 5:00 p.m.
Eastern Time, will discuss the fourth quarter results for 2012.

Details are as follows: 
Earnings Call:          March 14, 2013 at 5:00 p.m. ET
                      Dial: 888.895.5271 (US and Canada), 847.619.6547
                      (International) and confirmation number 34382373
AudioReplay:          A replay of the earnings call will be available
                        for a limited time and can be
                      heard after 7:30 p.m. ET on March 14, 2013.
                        Dial:888.843.7419(US and
                      Canada),630.652.3042(International) and pass

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 raise additional
capital to pay or restructure our obligations as they come due, develop and
expand our business, pay for 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.

GLOBALSTAR, INC.                                                           
(Dollars in thousands, except per share data)                             
                       Three Months Ended      Twelve Months Ended
                        December 31,            December 31,
                       2012        2011        2012         2011
Service revenues        $15,323   $13,623   $57,468    $55,397
Subscriber equipment    3,739      3,764      18,850      17,430
Total revenue           19,062     17,387     76,318      72,827
Operating expenses:                                        
Cost of services
(exclusive of
depreciation,           6,513      6,562      23,228      29,246
amortization, and
accretion shown
separately below)
Cost of subscriber      2,816      2,606      13,280      11,927
equipment sales
Cost of subscriber
equipment sales -       439        7,425      1,397       8,826
reduction in the value
of inventory
Marketing, general, and 7,774      8,432      34,339      42,436
Reduction in the value  --        94         7,218       3,578
of long-lived assets
Contract termination    --        --        22,048      --
amortization, and       20,524     14,537     69,801      50,049
Total operating         38,066     39,656     171,311     146,062
Loss from operations    (19,004)   (22,269)   (94,993)    (73,235)
Other income (expense):                                    
Interest income and
expense, net of amounts (8,090)    (1,210)    (21,486)    (4,809)
Derivative gain (loss)  9,535      (10,251)   6,974       23,839
Other                   (1,341)    (255)      (2,280)     (828)
Total other income      104        (11,716)   (16,792)    18,202
Loss before income      (18,900)   (33,985)   (111,785)   (55,033)
Income tax expense      52         (276)      413         (109)
Net loss                $(18,952) $(33,709) $(112,198) $(54,924)
Loss per common share:                                     
Basic                   $(0.05)   $(0.11)   $(0.29)    $(0.18)
Diluted                 (0.05)     (0.11)     (0.29)      (0.18)
Weighted-average shares outstanding                         
Basic                   424,180    312,867    388,453     299,144
Diluted                 424,180    312,867    388,453     299,144

(Dollars in thousands)
                     Three Months Ended December Twelve Months Ended December
                      31,                         31,
                     2012          2011          2012           2011
Net loss              $(18,952)   $(33,709)   $(112,198)   $(54,924)
Interest income and   8,090        1,210        21,486        4,809
expense, net
Derivative (gain)     (9,535)      10,251       (6,974)       (23,839)
Income tax expense    52           (276)        413           (109)
amortization, and     20,524       14,537       69,801        50,049
EBITDA                179          (7,987)      (27,472)      (24,014)
Reduction in the
value of long-lived   439          7,519        8,615         12,404
assets and inventory
Stock compensation    341          219          1,322         2,199
Research and          120          247          336           1,823
Severance             5            310          51            1,266
Foreign exchange and  1,341        306          2,280         879
other loss
Revenue recognized
from Open Range lease --          --          --           (1,976)
Thales arbitration    72           1,035        1,803         1,035
Contract termination  --          --          22,048        --
Write off of deferred --          --          833           --
financing costs
Adjusted EBITDA (1)   $2,497      $1,649      $9,816       $(6,384)

(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. The Company refined its calculation of Adjusted
EBITDA during 2012 and has excluded certain items from the previous periods
above to conform to the current period calculation.

GLOBALSTAR, INC.                                                                               
SCHEDULE OF SELECTED OPERATING METRICS                                                         
(Dollars in thousands, except subscriber and ARPU)                                             
           Three Months Ended December 31,         Twelve Months Ended December 31,
           2012                2011                2012                2011
           Service   Equipment Service   Equipment Service   Equipment Service   Equipment
Duplex      $4,755  $710    $4,164  $361    $18,438 $2,652  $19,778 $1,826
SPOT        6,868    1,110    5,743    1,757    25,227   4,997    19,753   7,932
Simplex     1,792    1,630    1,516    1,461    6,146    9,081    5,495    6,431
IGO         223      119      238      230      804      990      1,533    1,128
Other       1,685    170      1,962    (45)     6,853    1,130    8,838    113
           $15,323 $3,739  $13,623 $3,764  $57,468 $18,850 $55,397 $17,430
Duplex      85,734            92,567            88,189            93,963   
SPOT        238,487           197,890           221,911           177,247  
Simplex     185,137           138,275           164,459           136,037  
IGO         41,128            45,590            42,252            47,920   
ARPU (1)                                                                    
Duplex      $18.49           $14.99           $17.42           $17.54  
SPOT        9.60              9.67              9.47              9.29     
Simplex     3.23              3.65              3.11              3.37     
IGO         1.81              1.74              1.59              2.67     

(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: Investor contact information:
         Jody Burfening/Carolyn Capaccio
         (212) 838-3777

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