TerreStar Announces Ground Based Beam Forming Testing Success

RESTON, Va., Feb. 22 /PRNewswire-FirstCall/ -- Mobile communications provider TerreStar Networks Inc. (TerreStar), a majority-owned subsidiary of TerreStar Corporation (Nasdaq: TSTR), today announced that the initial on-orbit testing of Ground Based Beam Forming (GBBF) is complete.  The TerreStar GBBF system is the first two-way GBBF system to employ both ground based calibration and beam forming.  The system provides the flexibility to deploy over 500 spot beams and manage power and capacity as customer demand dictates.

"Stable, configurable beams are being formed and link performance is meeting our expectations for this phase," said Dennis Matheson, chief technology officer, TerreStar.  "We could not have made this tremendous progress without our dedicated partners Hughes Network Systems and Space Systems/Loral."

"Since the launch of our satellite, TerreStar-1, on July 1, 2009, TerreStar has continued to execute on its vision of offering ubiquitous, reliable and resilient mobile service -- virtually anywhere in North America," said Jeffrey Epstein, president & CEO, TerreStar. "Today's 'first' is another milestone on the path to deliver the next generation of mobile services."

In 2010, TerreStar remains focused on launching the world's first satellite terrestrial smartphone fusing the power of 2G/3G communications with a next-generation satellite to deliver mobile communications services to help solve the critical communications challenges faced by government, emergency responders, enterprises, and rural communities.  GBBF allows TerreStar to respond in emergency situations when terrestrial networks are unavailable by allocating power and capacity where and when it is needed most.  With today's announcement TerreStar is poised to launch commercial service in the first half of this year.

About TerreStar Networks Inc.

TerreStar Networks (www.terrestar.com), a majority owned subsidiary of TerreStar Corporation (Nasdaq: TSTR), plans to offer a reliable, secure and resilient 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.

Statement under the Private Securities Litigation Reform Act:

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.

SOURCE TerreStar Corporation

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