Alcatel-Lucent to Develop Satellite Base Station Sub-Systems for SkyTerra and TerreStar to Support 3G Satellite Communications

SkyTerra and TerreStar Networks jointly announced an agreement today for the development of innovative mobile network technology that integrates Qualcomm’s EV-DO-based satellite communications technology into an Alcatel-Lucent base station. The satellite-adapted EV-DO base stations -- developed by Alcatel-Lucent -- will form key components of SkyTerra’s and TerreStar’s integrated satellite-terrestrial networks designed to offer uninterrupted voice and data service coverage throughout North America.

Under the agreement, Alcatel-Lucent will work with SkyTerra and TerreStar to develop satellite base station sub-systems, or S-BSS, based on Qualcomm’s Satellite DO technology, a satellite-adapted implementation of CDMA/EV-DO. These base stations will support seamless connectivity between satellite and terrestrial networks for users of next-generation, satellite-capable devices.

TerreStar and SkyTerra previously announced an agreement with Qualcomm under which Qualcomm is integrating this satellite and cellular communication technology in select multi-mode mobile chipsets.

The next-generation networks being developed by SkyTerra and TerreStar will enable ubiquitous mobile communications coverage from anywhere in North America using mass-market devices costing about the same as today’s cellular devices.

"The S-BSS being developed by Alcatel-Lucent is a central and critical component of SkyTerra’s next-generation network,” said Brian Deobald, SkyTerra VP of Technology and Product Development. "For the first time, satellite communications will be able to achieve economies of scale traditionally enjoyed in the cellular marketplace. We are pleased to rely on Alcatel-Lucent’s proven expertise in communications technology to enable Qualcomm’s Satellite DO chipset technology in an innovative satellite base station.”

David Marshack, SVP Product & Device Technology at TerreStar Networks, added, "We look forward to the robust product line the Alcatel-Lucent S-BSS together with the Qualcomm chip enables TerreStar to bring to market. This solution helps us achieve our goal of providing a combined satellite terrestrial solution to government, public safety and enterprise users who require anytime anywhere communications in a compact form factor. We believe this combined solution is a game changer for our industry.”

"As the leader in CDMA/EV-DO technology, Alcatel-Lucent is helping pave the way for a new dimension in mobile communications using next-generation satellite networks,” said Robert Vrij, president of Alcatel-Lucent’s Americas business. "Through the integration of 3G technology and satellite networks Alcatel-Lucent is enabling SkyTerra and TerreStar Networks to bring high-quality mobile voice and data coverage to hard-to-reach, underserved areas throughout North America.”

About SkyTerra Communications (www.skyterra.com)

SkyTerra Communications (OTCBB: SKYT) delivers mobile wireless voice and data services primarily for public safety, security, fleet management and asset tracking in the U.S. and Canada. The company’s next-generation integrated satellite-terrestrial communications network is expected to provide seamless, transparent and ubiquitous wireless coverage of the United States and Canada to conventional handsets. When completed, the network will support communications in a variety of market segments, including public safety, homeland security, telematics, transportation and entertainment, by providing a platform for interoperable, user-friendly and feature-rich voice and high-speed data services.

About TerreStar Networks Inc.

TerreStar Networks (www.terrestar.com), a majority owned subsidiary of TerreStar Corporation (NASDAQ: TSTR), plans to offer a reliable and secure satellite terrestrial mobile broadband network that will provide voice, data and video services dedicated to helping solve the critical communication and business continuity challenges faced by government, emergency responders, enterprise businesses and rural communities. TerreStar expects to offer next generation mobile communications through a network of partners and service providers to users who need "anywhere" coverage throughout the United States and Canada.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com.

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