Monday, September 15, 2008

TerreStar Sells Remaining Interest in SkyTerra for $123 MM

TerreStar Corporation sold its remaining 29,926,074 shares of non-voting common stock of SkyTerra Communications for a total of approximately $123 million in a series of transactions.

"We are pleased that this working capital and increased liquidity helps stabilize our financial position into 2010 -- especially in the face of today's tight credit markets," said William M. Freeman, Chairman of the Board, TerreStar. "With the proceeds of this transaction, we have the opportunity to strengthen the fundamentals of TerreStar, to develop and implement additional revenue generation opportunities with key partners and to ultimately enhance shareholder value."

"TerreStar plans to empower its partners and customers to offer a reliable and secure mobile broadband network to homeland defense and public safety organizations, rural and under-served markets, maritime industry, machine-to-machine communications providers, and to consumer focused voice, data and video businesses interested in ‘anywhere' coverage throughout North America," said Jeffrey Epstein, President, TerreStar. "This additional cash infusion will help us deliver our vision of the nation's first IP-enabled integrated satellite-terrestrial mobile broadband network."

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