TerreStar Signs Technology Agreement with Qualcomm to Broaden Market Opportunity for Conventional-sized Integrated Satellite-Cellular Handsets and Devices

TerreStar Networks Inc., a majority-owned subsidiary of TerreStar Corporation (NASDAQ:TSTR), today announced that it has entered into an agreement with Qualcomm Incorporated (NASDAQ:QCOM) to develop integrated satellite-cellular communications technologies for conventional-sized mobile devices designed for government, public safety, enterprise and consumer users. This agreement broadens TerreStar’s existing development opportunities for advanced technologies and protocols that combine the ubiquity of a North American satellite footprint with the connectivity of terrestrial wireless networks across an all-IP broadband communications platform.

Under the agreement, Qualcomm will integrate satellite and cellular communications technology by developing a satellite protocol and including it in the firmware of select upcoming Qualcomm multi-mode baseband chips. Qualcomm also will support the S-Band frequencies — where TerreStar will operate — in select RF processors. As a result, satellite connectivity can be enabled in conventional-sized, mass-market wireless handsets and devices. The same mobile chipsets forming the heart of handsets and other devices will enable handset vendors to produce satellite-capable devices at comparable scale and cost.

The agreement follows Qualcomm’s previous agreements with other MSS providers, including Mobile Satellite Ventures and ICO Global Communications.

“Collaborating with Qualcomm and other MSS companies allows us to continue to innovate technologically while maintaining our strong financial position into 2010. This agreement provides more tools for our wholesale partners, government and commercial sales initiatives and opens up new markets for revenue generation,” said TerreStar President Jeffrey Epstein.

Epstein added, “As we move forward towards our expected satellite launch in June 2009, we plan to leverage our technological advances, key partnering agreements and our stable liquidity to establish a first-to-market advantage.”

The new chips are expected to be available beginning in 2010. Qualcomm will sell and support its integrated mobile satellite-terrestrial chipsets to mobile device vendors in the same manner it does today with terrestrial chipsets. This will enable terminal OEMs to provide a full range of handhelds and mobile computing devices capable of terrestrial connectivity with WCDMA and CDMA2000® technologies across the S-Band, as well as a wide range of existing mobile terrestrial bands.

“This agreement furthers TerreStar’s long-term objective of unlocking the value of MSS/ATC by bringing satellite-terrestrial enabled communications to the broader consumer market in an array of conventional wireless technologies,” said Dennis Matheson, TerreStar’s Chief Technology Officer. “We believe that this collaboration can help integrated devices achieve the economies of scale currently seen in the wireless marketplace and, together with our current device initiatives, we believe that we will be able to create the most flexible platform and service offering in the market.”

“Qualcomm is pleased to be working with TerreStar on development of this innovative satellite-terrestrial wireless technology,” said Peggy Johnson, Qualcomm’s executive vice president for Americas and India. “The planned inclusion of satellite capabilities in future mass-market wireless devices is an exciting development for the telecommunications industry.”

About TerreStar Corporation

TerreStar Corporation is the controlling shareholder of TerreStar Networks Inc. and TerreStar Global Ltd. For additional information on TerreStar Corporation, please visit the company's website at www.terrestarcorp.com.

About TerreStar Networks Inc.

A majority-owned subsidiary of TerreStar Corporation (NASDAQ:TSTR), TerreStar Networks, Inc. (www.terrestar.com) is operating as a wholesale mobile voice, data and video service provider and expects to offer a reliable and secure satellite-terrestrial mobile broadband network to government, public safety, enterprise and consumer users interested in “anywhere” coverage throughout North America.

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This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the strategy of TerreStar Corporation, its plans, and the transactions described in this press release. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, proposed, potential and similar words and terms in connection with future results. We assume no obligation to update or supplement such forward-looking statements.