|   | x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------------|

|   |  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

| Delaware                        |   | 41-2116508                           |
|---------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of |   | (I.R.S. Employer Identification No.) |
| Incorporation or Organization)  |   |                                 |

| Large accelerated filer  ̈                |   | Accelerated filer x                         |
|-----------------------------------------------|--------|---------------------------------------------|
|                                          |   |                                        |
| Non-accelerated filer  ̈                  |   | Smaller reporting company   ̈ |
| (Do not check if a smaller reporting company) |   |                                        |

----

|                                 | Page                                                                                        |
|--------------------------------------|---------------------------------------------------------------------------------------------|
|                                 |                                                                                        |
| PART I -  Financial Information |                                                                                        |
|                                 |                                                                                        |   |
| Item 1.                              | Financial Statements                                                                        | 3 |
|                                 |                                                                                        |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   31 |
|                                 |                                                                                        |   |
| Item 3.                              | Quantitative and Qualitative Disclosures about Market Risk                                  |   41 |
|                                 |                                                                                        |   |
| Item 4.                              | Controls and Procedures                                                                     |   42 |
|                                 |                                                                                        |   |
| PART II -  Other Information    |                                                                                        |
|                                 |                                                                                        |   |
| Item 1.                         | Legal Proceedings                                                                           | 43 |
|                                 |                                                                                        |   |
| Item 1A.                             | Risk Factors                                                                                |   43 |
|                                 |                                                                                        |   |
| Item 6.                              | Exhibits                                                                                    |   44 |
|                                 |                                                                                        |   |
| Signatures                           |   46                                                                                   |

----

|                                                                                             |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                             |   | June 30,           |    |   | June 30,         |   |   | June 30, |   |   | June 30, |   |
|                                                                                             |   | 2011               |    |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                                                             |   |               |    |   |             |   |   |   |   |   |   |   |
| Revenues:                                                                                        |   |               |    |   |             |   |   |   |   |   |   |   |
| Service revenues                                                                                 |   | $                  | 13,377  |   |             | $      | 12,908 |   |   | $ | 27,576 |   |   | $ | 25,362 |   |
| Subscriber equipment sales                                                                       |   |               | 5,622   |   |             |   | 4,714 |   |   |   | 9,677 |   |   |   | 7,831 |   |
| Total revenues                                                                                   |   |               | 18,999  |   |             |   | 17,622 |   |   |   | 37,253 |   |   |   | 33,193 |   |
| Operating expenses:                                                                              |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |   |               | 7,291   |   |             |   | 6,974 |   |   |   | 14,353 |   |   |   | 14,592 |   |
| Cost of subscriber equipment sales                                                               |   |               | 3,998   |   |             |   | 3,537 |   |   |   | 6,872 |   |   |   | 6,049 |   |
| Reduction in the value of assets                                                                 |   |               | 161     |   |             |   | — |   |   |   | 446 |   |   |   | — |   |
| Marketing, general, and administrative                                                           |   |               | 11,572  |   |             |   | 10,122 |   |   |   | 21,754 |   |   |   | 18,334 |   |
| Depreciation, amortization, and accretion                                                        |   |               | 12,795  |   |             |   | 5,973 |   |   |   | 23,406 |   |   |   | 11,863 |   |
| Total operating expenses                                                                         |   |               | 35,817  |   |             |   | 26,606 |   |   |   | 66,831 |   |   |   | 50,838 |   |
| Loss from operations                                                                             |   |               | (16,818 | )      |             |   | (8,984 | ) |   |   | (29,578 | ) |   |   | (17,645 | ) |
| Other income (expense):                                                                          |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                                  |   |               | 2       |   |             |   | 157 |   |   |   | 11 |   |   |   | 339 |   |
| Interest expense, net of amounts capitalized                                                     |   |               | (1,157  | )      |             |   | (1,182 | ) |   |   | (2,378 | ) |   |   | (2,592 | ) |
| Derivative gain (loss)                                                                           |   |               | 3,861   |   |             |   | (8,073 | ) |   |   | 10,296 |   |   |   | (33,035 | ) |
| Other                                                                                            |   |               | 125     |   |             |   | (1,132 | ) |   |   | 1,304 |   |   |   | (1,859 | ) |
| Total other income (expense)                                                                     |   |               | 2,831   |   |             |   | (10,230 | ) |   |   | 9,233 |   |   |   | (37,147 | ) |
| Loss before income taxes                                                                         |   |               | (13,987 | )      |             |   | (19,214 | ) |   |   | (20,345 | ) |   |   | (54,792 | ) |
| Income tax expense                                                                               |   |               | 81      |   |             |   | 35 |   |   |   | 189 |   |   |   | 99 |   |
| Net loss                                                                                         |   | $                  | (14,068 | )      |             | $      | (19,249 | ) |   | $ | (20,534 | ) |   | $ | (54,891 | ) |
| Loss per common share:                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   | $                  | (0.05   | )      |             | $      | (0.07 | ) |   | $ | (0.07 | ) |   | $ | (0.20 | ) |
| Diluted                                                                                          |   |               | (0.05   | )      |             |   | (0.07 | ) |   |   | (0.07 | ) |   |   | (0.20 | ) |
| Weighted-average shares outstanding:                                                             |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   |               | 294,963 |   |             |   | 282,080 |   |   |   | 294,013 |   |   |   | 278,752 |   |
| Diluted                                                                                          |   |               | 294,963 |   |             |   | 282,080 |   |   |   | 294,013 |   |   |   | 278,752 |   |

----

|                                                                                                                                                                                    |   | (Unaudited)   |      |   | (Audited)             |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|-----------------------|--------|
|                                                                                                                                                                                    |   | June 30, 2011 |      |   | December 31,2010 |   |
| ASSETS                                                                                                                                                                                  |   |          |      |   |                  |   |
| Current assets:                                                                                                                                                                         |   |          |      |   |                  |   |
| Cash and cash equivalents                                                                                                                                                               |   | $             | 24,088    |   |                  | $      | 33,017 |   |
| Restricted cash                                                                                                                                                                         |   |          | —   |   |                  |   | 2,064 |   |
| Accounts receivable, net of allowance of $7,546 (2011) and $5,971 (2010)                                                                                                                |   |          | 15,406    |   |                  |   | 13,671 |   |
| Inventory                                                                                                                                                                               |   |          | 55,715    |   |                  |   | 55,635 |   |
| Advances for inventory                                                                                                                                                                  |   |          | 9,367     |   |                  |   | 9,431 |   |
| Prepaid expenses and other current assets                                                                                                                                               |   |          | 14,735    |   |                  |   | 5,061 |   |
| Total current assets                                                                                                                                                                    |   |          | 119,311   |   |                  |   | 118,879 |   |
| Property and equipment, net                                                                                                                                                             |   |          | 1,178,599 |   |                  |   | 1,150,470 |   |
| Restricted cash                                                                                                                                                                         |   |          | 41,919    |   |                  |   | 34,276 |   |
| Deferred financing costs                                                                                                                                                                |   |          | 59,251    |   |                  |   | 59,870 |   |
| Intangible and other assets, net                                                                                                                                                        |   |          | 17,272    |   |                  |   | 23,313 |   |
| Total assets                                                                                                                                                                            |   | $             | 1,416,352 |   |                  | $      | 1,386,808 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                              |   |          |      |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                    |   |          |      |   |                  |   |   |   |
| Current maturities of long-term debt                                                                                                                                                    |   | $             | 16,711    |   |                  | $      | — |   |
| Accounts payable                                                                                                                                                                        |   |          | 32,113    |   |                  |   | 26,434 |   |
| Accrued expenses                                                                                                                                                                        |   |          | 28,163    |   |                  |   | 48,162 |   |
| Payables to affiliates                                                                                                                                                                  |   |          | 180       |   |                  |   | 710 |   |
| Deferred revenue                                                                                                                                                                        |   |          | 19,038    |   |                  |   | 19,150 |   |
| Total current liabilities                                                                                                                                                               |   |          | 96,205    |   |                  |   | 94,456 |   |
|                                                                                                                                                                                    |   |          |      |   |                  |   |   |   |
| Long-term debt                                                                                                                                                                          |   |          | 690,255   |   |                  |   | 664,543 |   |
| Employee benefit obligations                                                                                                                                                            |   |          | 4,654     |   |                  |   | 4,727 |   |
| Derivative liabilities                                                                                                                                                                  |   |          | 53,024    |   |                  |   | 60,819 |   |
| Deferred revenue                                                                                                                                                                        |   |          | 4,127     |   |                  |   | 3,875 |   |
| Other non-current liabilities                                                                                                                                                           |   |          | 17,626    |   |                  |   | 22,970 |   |
| Total non-current liabilities                                                                                                                                                           |   |          | 769,686   |   |                  |   | 756,934 |   |
| Stockholders’ equity:                                                                                                                                                             |   |          |      |   |                  |   |   |   |
| Preferred Stock of $0.0001 par value; 100,000,000 shares authorized and none issued and outstanding at June 30, 2011 and December 31, 2010:                                             |   |          |      |   |                  |   |   |   |
| Series A Preferred Convertible Stock of $0.0001 par value;  One share authorized and  none issued and outstanding at June 30, 2011 and December 31, 2010                 |   |          | —   |   |                  |   | — |   |
| Voting Common Stock of $0.0001 par value; 865,000,000 shares authorized; 293,103,000 and 290,683,000 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively |   |          | 29        |   |                  |   | 29 |   |
| Nonvoting Common Stock of $0.0001 par value; 135,000,000 shares authorized and 19,276,000 shares issued and outstanding at June 30, 2011 and December 31, 2010                          |   |          | 2         |   |                  |   | 2 |   |
| Additional paid-in capital                                                                                                                                                              |   |          | 772,039   |   |                  |   | 736,455 |   |
| Accumulated other comprehensive loss                                                                                                                                                    |   |          | (275      | )      |                  |   | (268 | ) |
| Retained deficit                                                                                                                                                                        |   |          | (221,334  | )      |                  |   | (200,800 | ) |
| Total stockholders’ equity                                                                                                                                                        |   |          | 550,461   |   |                  |   | 535,418 |   |
| Total liabilities and stockholders’ equity                                                                                                                                        |   | $             | 1,416,352 |   |                  | $      | 1,386,808 |   |

----

|                                                                                                   |   | Six Months Ended |    |
|--------------------------------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                                                   |   | June 30,2011     |    |   | June 30,2010 |   |
|                                                                                                   |   |             |    |   |   |   |
| Cash flows from operating activities:                                                                  |   |             |    |   |   |   |
|                                                                                                   |   |             |    |   |   |   |
| Net loss                                                                                               |   | $                | (20,534 | ) |   | $ | (54,891 | ) |
| Adjustments to reconcile net loss to net cash from operating activities:                               |   |             |    |   |   |   |   |   |
| Depreciation, amortization, and accretion                                                              |   |             | 23,406  |   |   |   | 11,863 |   |
| Change in fair value of derivative assets and liabilities                                              |   |             | (10,296 | ) |   |   | 33,035 |   |
| Stock-based compensation expense (benefit)                                                             |   |             | 1,554   |   |   |   | (810 | ) |
| Amortization of deferred financing costs                                                               |   |             | 1,798   |   |   |   | 1,649 |   |
| Loss on equity method investee                                                                         |   |             | 210     |   |   |   | 723 |   |
| Foreign currency and other, net                                                                        |   |             | 1,156   |   |   |   | (128 | ) |
| Changes in operating assets and liabilities:                                                           |   |             |    |   |   |   |   |   |
| Accounts receivable                                                                                    |   |             | (2,920  | ) |   |   | (1,489 | ) |
| Inventory                                                                                              |   |             | 964     |   |   |   | 2,731 |   |
| Prepaid expenses and other current assets                                                              |   |             | 159     |   |   |   | 35 |   |
| Other assets                                                                                           |   |             | (996    | ) |   |   | (714 | ) |
| Accounts payable                                                                                       |   |             | 711     |   |   |   | (358 | ) |
| Payables to affiliates                                                                                 |   |             | (530    | ) |   |   | 155 |   |
| Accrued expenses and employee benefit obligations                                                      |   |             | (1,123  | ) |   |   | 390 |   |
| Other non-current liabilities                                                                          |   |             | 858     |   |   |   | 817 |   |
| Deferred revenue                                                                                       |   |             | 98      |   |   |   | 760 |   |
| Net cash from operating activities                                                                     |   |             | (5,485  | ) |   |   | (6,232 | ) |
| Cash flows from investing activities:                                                                  |   |             |    |   |   |   |   |   |
| Second-generation satellites, ground and related launch costs                                          |   |             | (57,907 | ) |   |   | (128,616 | ) |
| Property and equipment additions                                                                       |   |             | (1,242  | ) |   |   | (3,117 | ) |
| Investment in businesses                                                                               |   |             | (500    | ) |   |   | (1,108 | ) |
| Restricted cash                                                                                        |   |             | (5,579  | ) |   |   | 2,064 |   |
| Net cash from investing activities                                                                     |   |             | (65,228 | ) |   |   | (130,777 | ) |
| Cash flows from financing activities:                                                                  |   |             |    |   |   |   |   |   |
| Proceeds from exercise of warrants and stock options                                                   |   |             | 525     |   |   |   | 4,385 |   |
| Borrowings from Facility Agreement                                                                     |   |             | 16,330  |   |   |   | 151,024 |   |
| Proceeds from the issuance of 5.0% convertible notes                                                   |   |             | 38,000  |   |   |   | — |   |
| Proceeds from the contribution to the debt service reserve account                                     |   |             | 7,643   |   |   |   | — |   |
| Payment of deferred financing costs                                                                    |   |             | (1,044  | ) |   |   | — |   |
| Net cash from financing activities                                                                     |   |             | 61,454  |   |   |   | 155,409 |   |
| Effect of exchange rate changes on cash                                                                |   |             | 330     |   |   |   | 907 |   |
| Net (decrease) increase in cash and cash equivalents                                                   |   |             | (8,929  | ) |   |   | 19,307 |   |
| Cash and cash equivalents, beginning of period                                                         |   |             | 33,017  |   |   |   | 67,881 |   |
| Cash and cash equivalents, end of period                                                               |   | $                | 24,088  |   |   | $ | 87,188 |   |
| Supplemental disclosure of cash flow information:                                                      |   |             |    |   |   |   |   |   |
| Cash paid for:                                                                                         |   |             |    |   |   |   |   |   |
| Interest                                                                                               |   | $                | 17,033  |   |   | $ | 8,769 |   |
| Income taxes                                                                                           |   | $                | 65      |   |   | $ | 85 |   |
| Supplemental disclosure of non-cash financing and investing activities:                                |   |             |    |   |   |   |   |   |
| Reduction in accrued second-generation satellites and launch costs                                     |   | $                | 8,788   |   |   | $ | 71,604 |   |
| (Reduction) increase in capitalized accrued interest for second-generation satellites and launch costs |   | $                | (4,872  | ) |   | $ | 1,973 |   |
| Capitalization of the accretion of debt discount and amortization of prepaid finance costs             |   | $                | 11,809  |   |   | $ | 11,531 |   |
| Payments made in Common Stock                                                                          |   | $                | 2,573   |   |   | $ | 1,811 |   |
| Reduction in assets and liabilities due to note conversion                                             |   | $                | 1,538   |   |   | $ | 7,685 |   |
| Conversion of convertible notes into common stock                                                      |   | $                | 1,000   |   |   | $ | 4,235 |   |
| Conversion of contingent equity account derivative liability to equity                                 |   | $                | 5,955   |   |   | $ | 11,940 |   |
| Value of warrants issued in connection with the contingent equity account loan fee                     |   | $                | 8,318   |   |   | $ | 8,510 |   |
| Recognition of a beneficial conversion feature on long-term debt                                       |   | $                | 17,100  |   |   | $ | — |   |
| Value of warrants issued in connection with raising capital and debt                                   |   | $                | 8,081   |   |   | $ | — |   |

----

----

----

|                                        |   | June 30, |      |   | December 31, |   |
|---------------------------------------------|--------|----------|-----------|--------|-------------------|--------|
|                                        |   | 2011     |      |   | 2010              |   |
| Globalstar System:                          |   |     |      |   |              |   |
| Space component                             |   | $        | 387,269   |   |              | $      | 171,888 |   |
| Ground component                            |   |     | 50,439    |   |              |   | 49,818 |   |
| Construction in progress:                   |   |     |      |   |              |   |   |   |
| Space component                             |   |     | 757,207   |   |              |   | 933,806 |   |
| Ground component                            |   |     | 70,161    |   |              |   | 60,350 |   |
| Other                                       |   |     | 1,929     |   |              |   | 2,794 |   |
| Internally developed and purchased software |   |     | 15,364    |   |              |   | 14,141 |   |
| Equipment                                   |   |     | 12,116    |   |              |   | 11,480 |   |
| Land and buildings                          |   |     | 4,488     |   |              |   | 4,359 |   |
| Leasehold improvements                      |   |     | 1,427     |   |              |   | 1,406 |   |
|                                        |   |     | 1,300,400 |   |              |   | 1,250,042 |   |
| Accumulated depreciation                    |   |     | (121,801  | )      |              |   | (99,572 | ) |
|                                        |   | $        | 1,178,599 |   |              | $      | 1,150,470 |   |

|                                                                                               |   | Contract |      |
|----------------------------------------------------------------------------------------------------|--------|----------|-----------|
|                                                                                               |   | Price    |      |
| Thales Alenia second-generation satellites (Phase 1 and 2) and satellite operations control center |   | $        | 638,598   |   |
| Arianespace launch services                                                                        |   |     | 216,000   |   |
| Launch insurance                                                                                   |   |     | 39,903    |   |
| Hughes next-generation ground component                                                            |   |     | 104,375   |   |
| Oceus Networks next-generation ground network                                                      |   |     | 28,253    |   |
| Total                                                                                              |   | $        | 1,027,129 |   |

----

|                       |   | As of    |    |
|----------------------------|--------|---------------|---------|
|                       |   | June 30, 2011 |    |   | December 31, 2010 |   |
|                       |   |          |    |   |   |   |
| Total Interest Capitalized |   | $             | 147,824 |   |   | $ | 122,222 |   |

|                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-------------------------------------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                |   | June 30, 2011           |   |   | June 30, 2010         |   |   | June 30, 2011 |   |   | June 30, 2010 |   |
|                                |   |                         |   |   |                       |   |   |   |   |   |   |   |
| Current Period Interest Capitalized |   | $                            | 13,079 |   |                       | $      | 11,934 |   |   | $ | 25,602 |   |   | $ | 23,102 |   |

|                 |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------|--------|------------------------------|--------|--------|----------------------------|--------|
|                 |   | June 30, 2011           |   |   | June 30, 2010         |   |   | June 30, 2011 |   |   | June 30, 2010 |   |
|                 |   |                         |   |   |                       |   |   |   |   |   |   |   |
| Depreciation Expense |   | $                            | 11,656 |   |                       | $      | 5,973 |   |   | $ | 21,472 |   |   | $ | 11,863 |   |

----

|                                     |   | As of   |    |
|------------------------------------------|--------|--------------|---------|
|                                     |   | June 30,2011 |    |   | December 31,2010 |   |
| Facility Agreement                       |   | $            | 575,967 |   |   | $ | 559,637 |   |
| 5.00% Convertible Senior Unsecured Notes |   |         | 11,316  |   |   |   | — |   |
| 8.00% Convertible Senior Unsecured Notes |   |         | 23,133  |   |   |   | 21,014 |   |
| 5.75% Convertible Senior Unsecured Notes |   |         | 61,175  |   |   |   | 58,465 |   |
| Subordinated Loan                        |   |         | 35,375  |   |   |   | 25,427 |   |
|                                     |   |         | 706,966 |   |   |   | 664,543 |   |
| Less current portion                     |   |         | 16,711  |   |   |   | — |   |
| Total long-term debt                     |   | $            | 690,255 |   |   | $ | 664,543 |   |

----

| Debt                          |   | $      | 11,316 |   |
|-------------------------------|--------|--------|--------|--------|
| Fair value of 5.0% Warrants   |   |   | 8,081  |   |
| Beneficial Conversion Feature |   |   | 17,100 |   |
| Contingent Put Feature        |   |   | 1,503  |   |
| Face Value of 5.0% Notes      |   | $      | 38,000 |   |

----

----

|                                                       |   | As of                       |   |
|-----------------------------------------------------------------|--------|----------------------------------|--------|
|                                                            |   | June 30, 2011               |   | December 31, 2010 |   |
|                                                       |   | Balance SheetLocation       |   | Fair Value |   | Balance SheetLocation |   | Fair Value |   |
| Interest rate cap                                          |   | Intangible and other assets, net |   | $ | 739 |   | Intangible and other assets, net |   | $ | 1,000 |   |
| Compound embedded conversion option with 8.00% Notes            |   | Derivative liabilities           |   |   | (18,433 | ) | Derivative liabilities |   |   | (23,008 | ) |
| Warrants issued with 8.00% Notes                                |   | Derivative liabilities           |   |   | (24,710 | ) | Derivative liabilities |   |   | (29,924 | ) |
| Warrants issued in conjunction with contingent equity agreement |   | Derivative liabilities           |   |   | (8,378 | ) | Derivative liabilities |   |   | (7,887 | ) |
| Contingent put feature embedded in the 5.0% Notes               |   | Derivative liabilities           |   |   | (1,503 | ) | Derivative liabilities |   |   | — |   |
| Total                                                           |   |                             |   | $ | (52,285 | ) |   |   | $ | (59,819 | ) |

|                                                       |   | Three months ended June 30,                                                    |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                            |   | 2011                                                                           |   | 2010 |   |
|                                                            |   | Location of gain (loss)recognizedin Statement ofOperations |   | Amount of gain(loss)recognizedon Statement ofOperations |   | Location of Lossrecognized inStatement ofOperations |   | Amount of Lossrecognizedon Statement ofOperations |   |
| Interest rate cap                                     |   | Derivative gain (loss)                                                         |   | $ | (408 | )  | Derivative gain (loss) |   | $ | (2,117 | ) |
| Compound embedded conversion option with 8.00% Notes            |   | Derivative gain (loss)                                                         |   |   | 1,304 |   | Derivative gain (loss) |   |   | (3,589 | ) |
| Warrants issued with 8.00% Notes                                |   | Derivative gain (loss)                                                         |   |   | 2,112 |   | Derivative gain (loss) |   |   | (697 | ) |
| Warrants issued in conjunction with contingent equity agreement |   | Derivative gain (loss)                                                         |   |   | 853 |   | Derivative gain (loss) |   |   | (1,670 | ) |
| Total                                                           |   |                                                                           |   | $ | 3,861 |   |   |   | $ | (8,073 | ) |

----

|                                                       |   | Six months ended June 30,                                                      |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                            |   | 2011                                                                           |   | 2010 |   |
|                                                            |   | Location of gain (loss)recognizedin Statement ofOperations |   | Amount of gain(loss)recognizedon Statement ofOperations |   | Location of Lossrecognized inStatement ofOperations |   | Amount of Lossrecognizedon Statement ofOperations |   |
| Interest rate cap                                     |   | Derivative gain (loss)                                                         |   | $ | (261 | )  | Derivative gain (loss) |   | $ | (5,285 | ) |
| Compound embedded conversion option with 8.00% Notes            |   | Derivative gain (loss)                                                         |   |   | 4,039 |   | Derivative gain (loss) |   |   | (11,109 | ) |
| Warrants issued with 8.00% Notes                                |   | Derivative gain (loss)                                                         |   |   | 4,651 |   | Derivative gain (loss) |   |   | (13,028 | ) |
| Warrants issued in conjunction with contingent equity agreement |   | Derivative gain (loss)                                                         |   |   | 1,867 |   | Derivative gain (loss) |   |   | (3,613 | ) |
| Total                                                           |   |                                                                           |   | $ | 10,296 |   |   |   | $ | (33,035 | ) |

----

|                                                 |   | Fair Value Measurements at June 30, 2011 using |    |
|------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                 |   | (Level 1)                                                          |    |   | (Level 2) |   |   | (Level 3) |   |   | Total Balance |   |
| Other assets:                                        |   |                                                                    |    |   |   |   |   |   |   |   |   |   |
| Interest rate cap                                    |   | $                                                                       | — |   |   | $ | 739 |   |   | $ | — |   |   | $ | 739 |   |
| Total other assets measured at fair value            |   | $                                                                       | — |   |   | $ | 739 |   |   | $ | — |   |   | $ | 739 |   |
|                                                 |   |                                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities:                                   |   |                                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liability for contingent consideration               |   | $                                                                       | — |   |   | $ | — |   |   | $ | (6,272 | ) |   | $ | (6,272 | ) |
| Compound embedded conversion option with 8.00% Notes |   |                                                                    | — |   |   |   | — |   |   |   | (18,433 | ) |   |   | (18,433 | ) |
| Warrants issued with 8.00% Notes                     |   |                                                                    | — |   |   |   | — |   |   |   | (24,710 | ) |   |   | (24,710 | ) |
| Warrants issued with contingent equity agreement     |   |                                                                    | — |   |   |   | — |   |   |   | (8,378 | ) |   |   | (8,378 | ) |
| Contingent put feature embedded in 5.0% Notes        |   |                                                                    | — |   |   |   | — |   |   |   | (1,503 | ) |   |   | (1,503 | ) |
| Total other liabilities measured at fair value       |   | $                                                                       | — |   |   | $ | — |   |   | $ | (59,296 | ) |   | $ | (59,296 | ) |

----

|                                                 |   | Fair Value Measurements at December 31, 2010 using |    |
|------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------|
|                                                 |   | (Level 1)                                                              |    |   | (Level 2) |   |   | (Level 3) |   |   | Total Balance |   |
| Other assets:                                        |   |                                                                        |    |   |   |   |   |   |   |   |   |   |
| Interest rate cap                                    |   | $                                                                           | — |   |   | $ | 1,000 |   |   | $ | — |   |   | $ | 1,000 |   |
| Total other assets measured at fair value            |   | $                                                                           | — |   |   | $ | 1,000 |   |   | $ | — |   |   | $ | 1,000 |   |
|                                                 |   |                                                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities:                                   |   |                                                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liability for contingent consideration               |   | $                                                                           | — |   |   | $ | — |   |   | $ | (6,019 | ) |   | $ | (6,019 | ) |
| Compound embedded conversion option with 8.00% Notes |   |                                                                        | — |   |   |   | — |   |   |   | (23,008 | ) |   |   | (23,008 | ) |
| Warrants issued with 8.00% Notes                     |   |                                                                        | — |   |   |   | — |   |   |   | (29,924 | ) |   |   | (29,924 | ) |
| Warrants issued with contingent equity agreement     |   |                                                                        | — |   |   |   | — |   |   |   | (7,887 | ) |   |   | (7,887 | ) |
| Total other liabilities measured at fair value       |   | $                                                                           | — |   |   | $ | — |   |   | $ | (66,838 | ) |   | $ | (66,838 | ) |

----

| Balance at March 31, 2011                                  |   | $      | (59,725 | )      |
|------------------------------------------------------------|--------|--------|---------|--------|
| Issuance of contingent equity warrant liability            |   |   | (8,313  | )      |
| Issuance of contingent put feature embedded in 5.0% Notes  |   |   | (1,503  | )      |
| Derivative adjustment related to conversions and exercises |   |   | 564     |   |
| Contingent consideration                                   |   |   | (542    | )      |
| Contingent equity warrant liability reclassed to equity    |   |   | 5,955   |   |
| Unrealized gain, included in derivative gain (loss)        |   |   | 4,268   |   |
| Balance at June 30, 2011                                   |   | $      | (59,296 | )      |
|                                                       |   |   |    |   |
| Balance at December 31, 2010                               |   | $      | (66,838 | )      |
| Issuance of contingent equity warrant liability            |   |   | (8,313  | )      |
| Issuance of contingent put feature embedded in 5.0% Notes  |   |   | (1,503  | )      |
| Derivative adjustment related to conversions and exercises |   |   | 1,100   |   |
| Contingent consideration                                   |   |   | (253    | )      |
| Contingent equity warrant liability reclassed to equity    |   |   | 5,955   |   |
| Unrealized gain, included in derivative gain (loss)        |   |   | 10,556  |   |
| Balance at June 30, 2011                                   |   | $      | (59,296 | )      |

| Balance at March 31, 2010                                  |   | $      | (70,387 | )      |
|------------------------------------------------------------|--------|--------|---------|--------|
| Issuance of contingent equity warrant liability            |   |   | (8,510  | )      |
| Derivative adjustment related to conversions and exercises |   |   | 5,842   |   |
| Contingent equity liability reclassed to equity            |   |   | 11,940  |   |
| Unrealized gain, included in derivative gain (loss)        |   |   | (5,503  | )      |
| Balance at June 30, 2010                                   |   | $      | (66,618 | )      |
|                                                       |   |   |    |   |
| Balance at December 31, 2009                               |   | $      | (49,755 | )      |
| Issuance of contingent equity warrant liability            |   |   | (8,510  | )      |
| Derivative adjustment related to conversions and exercises |   |   | 7,004   |   |
| Contingent equity liability reclassed to equity            |   |   | 11,940  |   |
| Unrealized gain, included in derivative gain (loss)        |   |   | (27,297 | )      |
| Balance at June 30, 2010                                   |   | $      | (66,618 | )      |

----

|                                                     |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|----------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                     |   | 2011                       |   |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
|                                                     |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Purchases of services, equipment, and other transactions |   | $                          | 101    |   |                     | $      | 90 |   |   | $ | 238 |   |   | $ | 696 |   |

|                               |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                               |   | 2011                       |   |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
|                               |   |                       |   |   |                     |   |   |   |   |   |   |   |
| General and administrative expense |   | $                          | 59     |   |                     | $      | 30 |   |   | $ | 89 |   |   | $ | 81 |   |
| Non-cash expenses                  |   |                       | 42     |   |                     |   | 42 |   |   |   | 84 |   |   |   | 84 |   |
|    Total            |   | $                          | 101    |   |                     | $      | 72 |   |   | $ | 173 |   |   | $ | 165 |   |

----

|                                                                                                       |   | Three months ended |   |   | Six months ended |   |
|------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                                                       |   | June 30,           |   |   | June 30,         |   |
|                                                                                                       |   | 2011               |   |   | 2010             |   |   | 2011 |   |   | 2010 |   |
| Accumulated other comprehensive loss, March 31, 2011 and 2010 and December 31, 2010 and 2009, respectively |   | $                  | (22    | )      |             | $      | (651 | ) |   | $ | (268 | ) |   | $ | (1,718 | ) |
| Other comprehensive income (loss):                                                                         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments                                                                   |   |               | (253   | )      |             |   | (635 | ) |   |   | (7 | ) |   |   | 432 |   |
| Accumulated other comprehensive loss, June 30, 2011 and 2010, respectively                                 |   | $                  | (275   | )      |             | $      | (1,286 | ) |   | $ | (275 | ) |   | $ | (1,286 | ) |

|                                                         |   | Three months ended |    |   | Six months ended |   |
|--------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                         |   | June 30,           |    |   | June 30,         |   |
|                                                         |   | 2011               |    |   | 2010             |   |   | 2011 |   |   | 2010 |   |
| Grants of restricted stock awards and restricted stock units |   |               | — |   |             |   | 544 |   |   |   | — |   |   |   | 1,260 |   |
| Grants of options to purchase common stock                   |   |               | 936     |   |             |   | — |   |   |   | 1,365 |   |   |   | 450 |   |
| Total                                                        |   |               | 936     |   |             |   | 544 |   |   |   | 1,365 |   |   |   | 1,710 |   |

----

----

|                               |   | Three months endedJune 30, |   |   | Six months endedJune 30, |   |
|------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                               |   | 2011                                 |   |   | 2010                               |   |   | 2011 |   |   | 2010 |   |
| Service:                           |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| United States                      |   | $                                    | 8,413  |   |                               | $      | 8,086 |   |   | $ | 17,992 |   |   | $ | 15,763 |   |
| Canada                             |   |                                 | 2,807  |   |                               |   | 2,925 |   |   |   | 5,404 |   |   |   | 5,821 |   |
| Europe                             |   |                                 | 1,134  |   |                               |   | 793 |   |   |   | 2,052 |   |   |   | 1,505 |   |
| Central and South America          |   |                                 | 950    |   |                               |   | 1,007 |   |   |   | 1,952 |   |   |   | 2,084 |   |
| Others                             |   |                                 | 73     |   |                               |   | 97 |   |   |   | 176 |   |   |   | 189 |   |
| Total service revenue              |   | $                                    | 13,377 |   |                               | $      | 12,908 |   |   | $ | 27,576 |   |   | $ | 25,362 |   |
| Subscriber equipment:              |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| United States                      |   |                                 | 3,614  |   |                               |   | 3,193 |   |   |   | 6,062 |   |   |   | 5,355 |   |
| Canada                             |   |                                 | 1,039  |   |                               |   | 849 |   |   |   | 1,733 |   |   |   | 1,373 |   |
| Europe                             |   |                                 | 518    |   |                               |   | 423 |   |   |   | 917 |   |   |   | 600 |   |
| Central and South America          |   |                                 | 445    |   |                               |   | 245 |   |   |   | 737 |   |   |   | 497 |   |
| Others                             |   |                                 | 6      |   |                               |   | 4 |   |   |   | 228 |   |   |   | 6 |   |
| Total subscriber equipment revenue |   | $                                    | 5,622  |   |                               | $      | 4,714 |   |   | $ | 9,677 |   |   | $ | 7,831 |   |
| Total revenue                      |   | $                                    | 18,999 |   |                               | $      | 17,622 |   |   | $ | 37,253 |   |   | $ | 33,193 |   |

|                      |   | June 30, |      |   | December 31, |   |
|---------------------------|--------|----------|-----------|--------|-------------------|--------|
|                      |   | 2011     |      |   | 2010              |   |
| Long-lived assets:        |   |     |      |   |              |   |
| United States             |   | $        | 1,171,601 |   |              | $      | 1,142,618 |   |
| Central and South America |   |     | 4,406     |   |              |   | 5,125 |   |
| Canada                    |   |     | 361       |   |              |   | 437 |   |
| Europe                    |   |     | 160       |   |              |   | 142 |   |
| Others                    |   |     | 2,071     |   |              |   | 2,148 |   |
| Total long-lived assets   |   | $        | 1,178,599 |   |              | $      | 1,150,470 |   |

----

|                                                                                             |   |                 |    |   |         |   |    | Non-         |   |   |         |   |   |         |    |
|--------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                             |   | Parent               |    |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |
|                                                                                             |   | Company              |    |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                                                             |   |  (In thousands) |    |
| Revenues:                                                                                        |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |
| Service revenues                                                                                 |   | $                    | 6,843   |   |         | $      | 10,035  |         |   | $      | 4,177        |   |   | $            | (7,678  | ) |   | $ | 13,377 |   |
| Subscriber equipment sales                                                                       |   |                 | 138     |   |         |   | 4,703   |         |   |   | 2,130        |   |   |         | (1,349  | ) |   |   | 5,622 |   |
|  Total revenues                                                                             |   |                 | 6,981   |   |         |   | 14,738  |         |   |   | 6,307        |   |   |         | (9,027  | ) |   |   | 18,999 |   |
| Operating expenses:                                                                              |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |   |                 | 2,690   |   |         |   | 2,430   |         |   |   | 3,161        |   |   |         | (990    | ) |   |   | 7,291 |   |
| Cost of subscriber equipment sales                                                               |   |                 | 800     |   |         |   | 3,414   |         |   |   | 1,150        |   |   |         | (1,366  | ) |   |   | 3,998 |   |
| Reduction in the value of assets                                                                 |   |                 | — |   |         |   | 161     |         |   |   | —      |   |   |         | — |   |   |   | 161 |   |
| Marketing, general and administrative                                                            |   |                 | 2,582   |   |         |   | 6,306   |         |   |   | 2,684        |   |   |         | — |   |   |   | 11,572 |   |
| Depreciation, amortization, and accretion                                                        |   |                 | 5,690   |   |         |   | 9,889   |         |   |   | 3,953        |   |   |         | (6,737  | ) |   |   | 12,795 |   |
|  Total operating expenses                                                                   |   |                 | 11,762  |   |         |   | 22,200  |         |   |   | 10,948       |   |   |         | (9,093  | ) |   |   | 35,817 |   |
| (Loss) gain from operations                                                                      |   |                 | (4,781  | )      |         |   | (7,462  | )            |   |   | (4,641       | )      |   |         | 66      |   |   |   | (16,818 | ) |
|  Other income (expense):                                                                    |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                                                                  |   |                 | 253     |   |         |   | — |         |   |   | —      |   |   |         | (251    | ) |   |   | 2 |   |
| Interest expense, net of amounts capitalized                                                     |   |                 | (917    | )      |         |   | — |         |   |   | (496         | )      |   |         | 256     |   |   |   | (1,157 | ) |
| Derivative gain (loss)                                                                           |   |                 | 3,861   |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 3,861 |   |
| Equity in subsidiary earnings                                                                    |   |                 | (12,882 | )      |         |   | (2,119  | )            |   |   | —      |   |   |         | 15,001  |   |   |   | — |   |
| Other                                                                                            |   |                 | 400     |   |         |   | (183    | )            |   |   | (34          | )      |   |         | (58     | ) |   |   | 125 |   |
|  Total other income (expense)                                                               |   |                 | (9,285  | )      |         |   | (2,302  | )            |   |   | (530         | )      |   |         | 14,948  |   |   |   | 2,831 |   |
| Loss before income taxes                                                                         |   |                 | (14,066 | )      |         |   | (9,764  | )            |   |   | (5,171       | )      |   |         | 15,014  |   |   |   | (13,987 | ) |
| Income tax expense                                                                               |   |                 | 2       |   |         |   | 24      |         |   |   | 55           |   |   |         | — |   |   |   | 81 |   |
| Net (loss) gain                                                                                  |   | $                    | (14,068 | )      |         | $      | (9,788  | )            |   | $      | (5,226       | )      |   | $            | 15,014  |   |   | $ | (14,068 | ) |

----

|                                                                                             |   |                 |    |   |         |   |    | Non-         |   |   |         |   |   |         |    |
|--------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                             |   | Parent               |    |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |
|                                                                                             |   | Company              |    |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                                                             |   |  (In thousands) |    |
| Revenues:                                                                                        |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |
| Service revenues                                                                                 |   | $                    | 13,573  |   |         | $      | 19,632  |         |   | $      | 8,130        |   |   | $            | (13,759 | ) |   | $ | 27,576 |   |
| Subscriber equipment sales                                                                       |   |                 | 409     |   |         |   | 7,662   |         |   |   | 3,642        |   |   |         | (2,036  | ) |   |   | 9,677 |   |
|  Total revenues                                                                             |   |                 | 13,982  |   |         |   | 27,294  |         |   |   | 11,772       |   |   |         | (15,795 | ) |   |   | 37, 253 |   |
| Operating expenses:                                                                              |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |   |                 | 5,007   |   |         |   | 4,841   |         |   |   | 6,498        |   |   |         | (1,993  | ) |   |   | 14,353 |   |
| Cost of subscriber equipment sales                                                               |   |                 | 1,887   |   |         |   | 5,760   |         |   |   | 1,285        |   |   |         | (2,060  | ) |   |   | 6,872 |   |
| Reduction in the value of assets                                                                 |   |                 | 285     |   |         |   | 161     |         |   |   | —      |   |   |         | — |   |   |   | 446 |   |
| Marketing, general and administrative                                                            |   |                 | 4,863   |   |         |   | 11,490  |         |   |   | 5,401        |   |   |         | — |   |   |   | 21,754 |   |
| Depreciation, amortization, and accretion                                                        |   |                 | 10,021  |   |         |   | 18,225  |         |   |   | 7,065        |   |   |         | (11,905 | ) |   |   | 23,406 |   |
|  Total operating expenses                                                                   |   |                 | 22,063  |   |         |   | 40,477  |         |   |   | 20,249       |   |   |         | (15,958 | ) |   |   | 66,831 |   |
| (Loss) gain from operations                                                                      |   |                 | (8,081  | )      |         |   | (13,183 | )            |   |   | (8,477       | )      |   |         | 163     |   |   |   | (29,578 | ) |
|  Other income (expense):                                                                    |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                                                                  |   |                 | 514     |   |         |   | — |         |   |   | 4            |   |   |         | (507    | ) |   |   | 11 |   |
| Interest expense, net of amounts capitalized                                                     |   |                 | (1,919  | )      |         |   | — |         |   |   | (974         | )      |   |         | 515     |   |   |   | (2,378 | ) |
| Derivative gain (loss)                                                                           |   |                 | 10,296  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 10,296 |   |
| Equity in subsidiary earnings                                                                    |   |                 | (21,914 | )      |         |   | (3,844  | )            |   |   | —      |   |   |         | 25,758  |   |   |   | — |   |
| Other                                                                                            |   |                 | 598     |   |         |   | (364    | )            |   |   | 1,229        |   |   |         | (159    | ) |   |   | 1,304 |   |
|  Total other income (expense)                                                               |   |                 | (12,425 | )      |         |   | (4,208  | )            |   |   | 259          |   |   |         | 25,607  |   |   |   | 9,233 |   |
| Loss before income taxes                                                                         |   |                 | (20,506 | )      |         |   | (17,391 | )            |   |   | (8,218       | )      |   |         | 25,770  |   |   |   | (20,345 | ) |
| Income tax expense                                                                               |   |                 | 28      |   |         |   | 23      |         |   |   | 138          |   |   |         | — |   |   |   | 189 |   |
| Net (loss) gain                                                                                  |   | $                    | (20,534 | )      |         | $      | (17,414 | )            |   | $      | (8,356       | )      |   | $            | 25,770  |   |   | $ | (20,534 | ) |

----

|                                                                                             |   |                 |    |   |         |   |    | Non-         |   |   |         |   |   |         |    |
|--------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                             |   | Parent               |    |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |
|                                                                                             |   | Company              |    |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                                                             |   |  (In thousands) |    |
| Revenues:                                                                                        |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |
| Service revenues                                                                                 |   | $                    | 2,739   |   |         | $      | 8,877   |         |   | $      | 4,089        |   |   | $            | (2,797  | ) |   | $ | 12,908 |   |
| Subscriber equipment sales                                                                       |   |                 | 112     |   |         |   | 3,681   |         |   |   | 1,703        |   |   |         | (782    | ) |   |   | 4,714 |   |
| Total revenues                                                                                   |   |                 | 2,851   |   |         |   | 12,558  |         |   |   | 5,792        |   |   |         | (3,579  | ) |   |   | 17,622 |   |
| Operating expenses:                                                                              |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |   |                 | 1,967   |   |         |   | 2,606   |         |   |   | 3,346        |   |   |         | (945    | ) |   |   | 6,974 |   |
| Cost of subscriber equipment sales                                                               |   |                 | 1,838   |   |         |   | 3,005   |         |   |   | (489         | )      |   |         | (817    | ) |   |   | 3,537 |   |
| Marketing, general and administrative                                                            |   |                 | 3,117   |   |         |   | 6,653   |         |   |   | 410          |   |   |         | (58     | ) |   |   | 10,122 |   |
| Depreciation, amortization, and accretion                                                        |   |                 | 802     |   |         |   | 5,014   |         |   |   | 2,072        |   |   |         | (1,915  | ) |   |   | 5,973 |   |
| Total operating expenses                                                                         |   |                 | 7,724   |   |         |   | 17,278  |         |   |   | 5,339        |   |   |         | (3,735  | ) |   |   | 26,606 |   |
| (Loss) gain from operations                                                                      |   |                 | (4,873  | )      |         |   | (4,720  | )            |   |   | 453          |   |   |         | 156     |   |   |   | (8,984 | ) |
| Other income (expense):                                                                          |   |                 |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                                                                  |   |                 | 383     |   |         |   | — |         |   |   | 1            |   |   |         | (227    | ) |   |   | 157 |   |
| Interest expense, net of amounts capitalized                                                     |   |                 | (1,083  | )      |         |   | — |         |   |   | (320         | )      |   |         | 221     |   |   |   | (1,182 | ) |
| Derivative loss, net                                                                             |   |                 | (8,073  | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (8,073 | ) |
| Equity in subsidiary earnings                                                                    |   |                 | (4,920  | )      |         |   | (1,160  | )            |   |   | —      |   |   |         | 6,080   |   |   |   | — |   |
| Other                                                                                            |   |                 | (666    | )      |         |   | 350     |         |   |   | (705         | )      |   |         | (111    | ) |   |   | (1,132 | ) |
| Total other income (expense)                                                                     |   |                 | (14,359 | )      |         |   | (810    | )            |   |   | (1,024       | )      |   |         | 5,963   |   |   |   | (10,230 | ) |
| Loss before income taxes                                                                         |   |                 | (19,232 | )      |         |   | (5,530  | )            |   |   | (571         | )      |   |         | 6,119   |   |   |   | (19,214 | ) |
| Income tax expense                                                                               |   |                 | 17      |   |         |   | 51      |         |   |   | (33          | )      |   |         | — |   |   |   | 35 |   |
| Net (loss) gain                                                                                  |   | $                    | (19,249 | )      |         | $      | (5,581  | )            |   | $      | (538         | )      |   | $            | 6,119   |   |   | $ | (19,249 | ) |

----

|                                                                                             |   |                |    |   |         |   |    | Non-         |   |   |         |   |   |         |    |
|--------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                             |   | Parent              |    |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |
|                                                                                             |   | Company             |    |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                                                             |   | (In thousands) |    |
| Revenues:                                                                                        |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |
| Service revenues                                                                                 |   | $                   | 5,294   |   |         | $      | 17,393  |         |   | $      | 8,287        |   |   | $            | (5,612  | ) |   | $ | 25,362 |   |
| Subscriber equipment sales                                                                       |   |                | 126     |   |         |   | 6,389   |         |   |   | 2,792        |   |   |         | (1,476  | ) |   |   | 7,831 |   |
| Total revenues                                                                                   |   |                | 5,420   |   |         |   | 23,782  |         |   |   | 11,079       |   |   |         | (7,088  | ) |   |   | 33,193 |   |
| Operating expenses:                                                                              |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |   |                | 4,045   |   |         |   | 5,246   |         |   |   | 7,161        |   |   |         | (1,860  | ) |   |   | 14,592 |   |
| Cost of subscriber equipment sales                                                               |   |                | 795     |   |         |   | 5,333   |         |   |   | 1,404        |   |   |         | (1,483  | ) |   |   | 6,049 |   |
| Marketing, general and administrative                                                            |   |                | 6,113   |   |         |   | 10,712  |         |   |   | 1,575        |   |   |         | (66     | ) |   |   | 18,334 |   |
| Depreciation, amortization, and accretion                                                        |   |                | 1,592   |   |         |   | 9,975   |         |   |   | 4,175        |   |   |         | (3,879  | ) |   |   | 11,863 |   |
| Total operating expenses                                                                         |   |                | 12,545  |   |         |   | 31,266  |         |   |   | 14,315       |   |   |         | (7,288  | ) |   |   | 50,838 |   |
| (Loss) gain from operations                                                                      |   |                | (7,125  | )      |         |   | (7,484  | )            |   |   | (3,236       | )      |   |         | 200     |   |   |   | (17,645 | ) |
| Other income (expense):                                                                          |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                                                                  |   |                | 763     |   |         |   | — |         |   |   | 2            |   |   |         | (426    | ) |   |   | 339 |   |
| Interest expense, net of amounts capitalized                                                     |   |                | (2,274  | )      |         |   | (1      | )            |   |   | (741         | )      |   |         | 424     |   |   |   | (2,592 | ) |
| Derivative loss, net                                                                             |   |                | (33,035 | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (33,035 | ) |
| Equity in subsidiary earnings                                                                    |   |                | (11,304 | )      |         |   | (3,040  | )            |   |   | —      |   |   |         | 14,344  |   |   |   | — |   |
| Other                                                                                            |   |                | (1,882  | )      |         |   | 629     |         |   |   | (486         | )      |   |         | (120    | ) |   |   | (1,859 | ) |
| Total other income (expense)                                                                     |   |                | (47,732 | )      |         |   | (2,412  | )            |   |   | (1,225       | )      |   |         | 14,222  |   |   |   | (37,147 | ) |
| Loss before income taxes                                                                         |   |                | (54,857 | )      |         |   | (9,896  | )            |   |   | (4,461       | )      |   |         | 14,422  |   |   |   | (54,792 | ) |
| Income tax expense                                                                               |   |                | 34      |   |         |   | 51      |         |   |   | 14           |   |   |         | — |   |   |   | 99 |   |
| Net (loss) gain                                                                                  |   | $                   | (54,891 | )      |         | $      | (9,947  | )            |   | $      | (4,475       | )      |   | $            | 14,422  |   |   | $ | (54,891 | ) |

----

|                                                   |                 |   |         |   | Non-         |   |        |   |         |   |    |   |
|--------------------------------------------------------|----------------------|--------|--------------|--------|--------------|--------|-------------|--------|--------------|--------|---------|--------|
|                                                   | Parent               |   | Guarantor    |   | Guarantor    |   |        |   |         |   |    |   |
|                                                   | Company              |   | Subsidiaries |   | Subsidiaries |   | Elimination |   | Consolidated |   |
|                                                   |  (In thousands) |   |
| ASSETS                                                 |                 |
| Current assets:                                        |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |
| Cash and cash equivalents                              |                 | $      | 22,330       |   |         | $      | 534         |   |         | $      | 1,224   |   |   | $ | — |   |   | $ | 24,088 |   |
| Accounts receivable                                    |                 |   | 2,303        |   |         |   | 6,346       |   |         |   | 6,757   |   |   |   | — |   |   |   | 15,406 |   |
| Intercompany receivables                               |                 |   | 496,282      |   |         |   | 337,260     |   |         |   | 4,838   |   |   |   | (838,380 | ) |   |   | — |   |
| Inventory                                              |                 |   | 94           |   |         |   | 7,418       |   |         |   | 48,203  |   |   |   | — |   |   |   | 55,715 |   |
| Advances for inventory                                 |                 |   | —      |   |         |   | 15          |   |         |   | 9,352   |   |   |   | — |   |   |   | 9,367 |   |
| Prepaid expenses and other current assets              |                 |   | 11,802       |   |         |   | 325         |   |         |   | 2,608   |   |   |   | — |   |   |   | 14,735 |   |
| Total current assets                                   |                 |   | 532,811      |   |         |   | 351,898     |   |         |   | 72,982  |   |   |   | (838,380 | ) |   |   | 119,311 |   |
|                                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Property and equipment, net                            |                 |   | 1,027,744    |   |         |   | 74,155      |   |         |   | 79,605  |   |   |   | (2,905 | ) |   |   | 1,178,599 |   |
| Restricted cash                                        |                 |   | 41,919       |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 41,919 |   |
| Intercompany notes receivable                          |                 |   | 50,907       |   |         |   | —     |   |         |   | — |   |   |   | (50,907 | ) |   |   | — |   |
| Investment in subsidiaries                             |                 |   | (70,011      | )      |         |   | (22,248     | )      |         |   | — |   |   |   | 92,259 |   |   |   | — |   |
| Deferred financing costs                               |                 |   | 59,178       |   |         |   | —     |   |         |   | 73      |   |   |   | — |   |   |   | 59,251 |   |
| Intangible and other assets, net                       |                 |   | 2,717        |   |         |   | 4,946       |   |         |   | 9,609   |   |   |   | — |   |   |   | 17,272 |   |
| Total assets                                      |                 | $      | 1,645,265    |   |         | $      | 408,751     |   |         | $      | 162,269 |   |   | $ | (799,933 | ) |   | $ | 1,416,352 |   |
|                                                   |                 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY             |                 |
| Current liabilities:                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Current portion of long-term debt                      |                 | $      | 16,711       |   |         | $      | —     |   |         | $      | — |   |   | $ | — |   |   | $ | 16,711 |   |
| Accounts payable                                       |                 |   | 5,594        |   |         |   | 3,396       |   |         |   | 23,123  |   |   |   | — |   |   |   | 32,113 |   |
| Accrued expenses                                       |                 |   | 10,042       |   |         |   | 9,752       |   |         |   | 8,369   |   |   |   | — |   |   |   | 28,163 |   |
| Intercompany payables                                  |                 |   | 304,425      |   |         |   | 414,734     |   |         |   | 119,221 |   |   |   | (838,380 | ) |   |   | — |   |
| Payables to affiliates                                 |                 |   | 180          |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 180 |   |
| Deferred revenue                                       |                 |   | 4,827        |   |         |   | 13,271      |   |         |   | 940     |   |   |   | — |   |   |   | 19,038 |   |
| Total current liabilities                              |                 |   | 341,779      |   |         |   | 441,153     |   |         |   | 151,653 |   |   |   | (838,380 | ) |   |   | 96,205 |   |
|                                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Long-term debt                                         |                 |   | 690,255      |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 690,255 |   |
| Employee benefit obligations                           |                 |   | 4,654        |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 4,654 |   |
| Intercompany notes payable                             |                 |   | —      |   |         |   | —     |   |         |   | 50,907  |   |   |   | (50,907 | ) |   |   | — |   |
| Derivative liabilities                                 |                 |   | 53,024       |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 53,024 |   |
| Deferred revenue                                       |                 |   | 3,649        |   |         |   | 478         |   |         |   | — |   |   |   | — |   |   |   | 4,127 |   |
| Other non-current liabilities                          |                 |   | 1,443        |   |         |   | 3,611       |   |         |   | 12,572  |   |   |   | — |   |   |   | 17,626 |   |
|  Total non-current liabilities                    |                 |   | 753,025      |   |         |   | 4,089       |   |         |   | 63,479  |   |   |   | (50,907 | ) |   |   | 769,686 |   |
| Stockholders’ equity                             |                 |   | 550,461      |   |         |   | (36,491     | )      |         |   | (52,863 | )      |   |   | 89,354 |   |   |   | 550,461 |   |
|  Total liabilities and stockholders’ equity |                 | $      | 1,645,265    |   |         | $      | 408,751     |   |         | $      | 162,269 |   |   | $ | (799,933 | ) |   | $ | 1,416,352 |   |

----

|                                                   |                 |   |         |   | Non-         |   |        |   |         |   |    |   |
|--------------------------------------------------------|----------------------|--------|--------------|--------|--------------|--------|-------------|--------|--------------|--------|---------|--------|
|                                                   | Parent               |   | Guarantor    |   | Guarantor    |   |        |   |         |   |    |   |
|                                                   | Company              |   | Subsidiaries |   | Subsidiaries |   | Elimination |   | Consolidated |   |
|                                                   |  (In thousands) |   |
| ASSETS                                                 |                 |
| Current assets:                                        |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |
| Cash and cash equivalents                              |                 | $      | 32,288       |   |         | $      | (766        | )      |         | $      | 1,495   |   |   | $ | — |   |   | $ | 33,017 |   |
| Restricted cash                                        |                 |   | 2,064        |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 2,064 |   |
| Accounts receivable                                    |                 |   | 4,351        |   |         |   | 5,105       |   |         |   | 4,215   |   |   |   | — |   |   |   | 13,671 |   |
| Intercompany receivables                               |                 |   | 424,903      |   |         |   | 313,857     |   |         |   | 10,527  |   |   |   | (749,287 | ) |   |   | — |   |
| Inventory                                              |                 |   | 33           |   |         |   | 8,105       |   |         |   | 47,497  |   |   |   | — |   |   |   | 55,635 |   |
| Advances for inventory                                 |                 |   | —      |   |         |   | 44          |   |         |   | 9,387   |   |   |   | — |   |   |   | 9,431 |   |
| Prepaid expenses and other current assets              |                 |   | 2,011        |   |         |   | 497         |   |         |   | 2,553   |   |   |   | — |   |   |   | 5,061 |   |
| Total current assets                                   |                 |   | 465,650      |   |         |   | 326,842     |   |         |   | 75,674  |   |   |   | (749,287 | ) |   |   | 118,879 |   |
|                                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Property and equipment, net                            |                 |   | 1,056,380    |   |         |   | 86,276      |   |         |   | 10,856  |   |   |   | (3,042 | ) |   |   | 1,150,470 |   |
| Restricted cash                                        |                 |   | 34,276       |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 34,276 |   |
| Intercompany notes receivable                          |                 |   | 45,166       |   |         |   | —     |   |         |   | — |   |   |   | (45,166 | ) |   |   | — |   |
| Investment in subsidiaries                             |                 |   | (49,142      | )      |         |   | (18,040     | )      |         |   | — |   |   |   | 67,182 |   |   |   | — |   |
| Deferred financing costs                               |                 |   | 59,797       |   |         |   | —     |   |         |   | 73      |   |   |   | — |   |   |   | 59,870 |   |
| Intangible and other assets, net                       |                 |   | 2,915        |   |         |   | 6,100       |   |         |   | 14,298  |   |   |   | — |   |   |   | 23,313 |   |
| Total assets                                      |                 | $      | 1,615,042    |   |         | $      | 401,178     |   |         | $      | 100,901 |   |   | $ | (730,313 | ) |   | $ | 1,386,808 |   |
|                                                   |                 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY             |                 |
| Current liabilities:                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Current portion of long-term debt                      |                 | $      | —      |   |         | $      | —     |   |         | $      | — |   |   | $ | — |   |   | $ | — |   |
| Accounts payable                                       |                 |   | 19,787       |   |         |   | 3,020       |   |         |   | 3,627   |   |   |   | — |   |   |   | 26,434 |   |
| Accrued expenses                                       |                 |   | 30,027       |   |         |   | 9,682       |   |         |   | 8,453   |   |   |   | — |   |   |   | 48,162 |   |
| Intercompany payables                                  |                 |   | 287,462      |   |         |   | 391,597     |   |         |   | 70,228  |   |   |   | (749,287 | ) |   |   | — |   |
| Payables to affiliates                                 |                 |   | 709          |   |         |   | 1           |   |         |   | — |   |   |   | — |   |   |   | 710 |   |
| Deferred revenue                                       |                 |   | 6,461        |   |         |   | 11,615      |   |         |   | 1,074   |   |   |   | — |   |   |   | 19,150 |   |
| Total current liabilities                              |                 |   | 344,446      |   |         |   | 415,915     |   |         |   | 83,382  |   |   |   | (749,287 | ) |   |   | 94,456 |   |
|                                                   |                 |   |         |   |         |   |        |   |         |   |    |   |   |   |   |   |   |   |   |   |
| Long-term debt                                         |                 |   | 664,543      |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 664,543 |   |
| Employee benefit obligations                           |                 |   | 4,727        |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 4,727 |   |
| Intercompany notes payable                             |                 |   | —      |   |         |   | —     |   |         |   | 45,166  |   |   |   | (45,166 | ) |   |   | — |   |
| Derivative liabilities                                 |                 |   | 60,819       |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 60,819 |   |
| Deferred revenue                                       |                 |   | 3,875        |   |         |   | —     |   |         |   | — |   |   |   | — |   |   |   | 3,875 |   |
| Other non-current liabilities                          |                 |   | 1,214        |   |         |   | 4,594       |   |         |   | 17,162  |   |   |   | — |   |   |   | 22,970 |   |
|  Total non-current liabilities                    |                 |   | 735,178      |   |         |   | 4,594       |   |         |   | 62,328  |   |   |   | (45,166 | ) |   |   | 756,934 |   |
| Stockholders’ equity                             |                 |   | 535,418      |   |         |   | (19,331     | )      |         |   | (44,809 | )      |   |   | 64,140 |   |   |   | 535,418 |   |
|  Total liabilities and stockholders’ equity |                 | $      | 1,615,042    |   |         | $      | 401,178     |   |         | $      | 100,901 |   |   | $ | (730,313 | ) |   | $ | 1,386,808 |   |

----

|                                                               |   |                |    |   |         |   |    | Non-         |   |   |         |   |   |         |    |
|--------------------------------------------------------------------|--------|---------------------|---------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                               |   | Parent              |    |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |
|                                                               |   | Company             |    |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                               |   | (In thousands) |    |
|                                                               |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |
| Net cash provided by (used in) operating activities                |   | $                   | (7,313  | )      |         | $      | 2,290   |         |   | $      | (462         | )      |   | $            | — |   |   | $ | (5,485 | ) |
|                                                               |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cash flows from investing activities:                              |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Second-generation satellites, ground and related launch costs      |   |                | (57,907 | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (57,907 | ) |
| Property and equipment additions                                   |   |                | (113    | )      |         |   | (990    | )            |   |   | (139         | )      |   |         | — |   |   |   | (1,242 | ) |
| Investment in businesses                                           |   |                | (500    | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (500 | ) |
| Restricted cash                                                    |   |                | (5,579  | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (5,579 | ) |
|                                                               |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Net cash from investing activities                                 |   |                | (64,099 | )      |         |   | (990    | )            |   |   | (139         | )      |   |         | — |   |   |   | (65,228 | ) |
|                                                               |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cash flows from financing activities:                              |   |                |    |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Proceeds from exercise of warrants and stock options               |   |                | 525     |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 525 |   |
| Borrowings from Facility Agreement                                 |   |                | 16,330  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 16,330 |   |
| Proceeds from the issuance of 5.0% convertible notes               |   |                | 38,000  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 38,000 |   |
| Proceeds from the contribution to the debt service reserve account |   |                | 7,643   |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 7,643 |   |
| Payment of deferred financing costs                                |   |                | (1,044  | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (1,044 | ) |
| Net cash provided by financing activities                          |   |                | 61,454  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 61,454 |   |
| Effect of exchange rate changes on cash and cash equivalents       |   |                | — |   |         |   | — |         |   |   | 330          |   |   |         | — |   |   |   | 330 |   |
| Net increase (decrease) in cash and cash equivalents               |   |                | (9,958  | )      |         |   | 1,300   |         |   |   | (271         | )      |   |         | — |   |   |   | (8,929 | ) |
| Cash and cash equivalents at beginning of period                   |   |                | 32,288  |   |         |   | (766    | )            |   |   | 1,495        |   |   |         | — |   |   |   | 33,017 |   |
| Cash and cash equivalents at end of period                         |   | $                   | 22,330  |   |         | $      | 534     |         |   | $      | 1,224        |   |   | $            | — |   |   | $ | 24,088 |   |

----

|                                                          |   |                |     |   |         |   |    | Non-         |   |   |         |   |   |         |    |   |   |
|---------------------------------------------------------------|--------|---------------------|----------|--------|--------------|--------|---------|--------------|--------|--------|--------------|--------|--------|--------------|---------|--------|--------|
|                                                          |   | Parent              |     |   | Guarantor    |   |    | Guarantor    |   |   |         |   |   |         |    |   |   |
|                                                          |   | Company             |     |   | Subsidiaries |   |    | Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|                                                          |   | (In thousands) |     |
|                                                          |   |                |     |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Net cash provided by (used in) operating activities           |   | $                   | (7,344   | )      |         | $      | 2,565   |         |   | $      | 560          |   |   | $            | (2,013  | )      |   | $ | (6,232 | ) |
|                                                          |   |                |     |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cash flows from investing activities:                         |   |                |     |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Second-generation satellites, ground and related launch costs |   |                | (128,616 | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (128,616 | ) |
| Property and equipment additions                              |   |                | (380     | )      |         |   | (2,657  | )            |   |   | (80          | )      |   |         | — |   |   |   | (3,117 | ) |
| Investment in businesses                                      |   |                | (1,108   | )      |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | (1,108 | ) |
| Restricted Cash                                               |   |                | 2,064    |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 2,064 |   |
| Net cash from investing activities                            |   |                | (128,040 | )      |         |   | (2,657  | )            |   |   | (80          | )      |   |         | — |   |   |   | (130,777 | ) |
|                                                          |   |                |     |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Cash flows from financing activities:                         |   |                |     |   |         |   |    |         |   |   |         |   |   |         |    |   |   |   |   |   |
| Proceeds from exercise of warrants                            |   |                | 4,385    |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 4,385 |   |
| Borrowings from Facility Agreement                            |   |                | 151,024  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 151,024 |   |
| Net cash provided by  financing activities          |   |                | 155,409  |   |         |   | — |         |   |   | —      |   |   |         | — |   |   |   | 155,409 |   |
| Effect of exchange rate changes on cash and cash equivalents  |   |                | —  |   |         |   | — |         |   |   | (1,106       | )      |   |         | 2,013   |   |   |   | 907 |   |
| Net increase (decrease) in cash and cash equivalents          |   |                | 20,025   |   |         |   | (92     | )            |   |   | (626         | )      |   |         | — |   |   |   | 19,307 |   |
| Cash and cash equivalents at beginning of period              |   |                | 65,910   |   |         |   | 484     |         |   |   | 1,487        |   |   |         | — |   |   |   | 67,881 |   |
| Cash and cash equivalents at end of period                    |   | $                   | 85,935   |   |         | $      | 392     |         |   | $      | 861          |   |   | $            | — |   |   | $ | 87,188 |   |

----

----

----

|   | • | two-way voice communication and data transmissions, which we call “Duplex,” between mobile or fixed devices; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | • | one-way data transmissions between a mobile or fixed device that transmits its location and other information and a central monitoring station, which includes the SPOT family and Simplex products. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Duplex two-way transmission products; |
|--------|---------|---------------------------------------|

|   | • | SPOT family of products (“SPOT”); and |
|--------|---------|---------------------------------------------------|

|   | • | Simplex one-way transmission products. |
|--------|---------|----------------------------------------|

|   | • | total revenue, which is an indicator of our overall business growth; |
|--------|---------|----------------------------------------------------------------------|

|   | • | subscriber growth and churn rate, which are both indicators of the satisfaction of our customers; |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | • | average monthly revenue per user, or ARPU, which is an indicator of our pricing and ability to obtain effectively long-term, high-value customers. We calculate ARPU separately for each of our Duplex, SPOT, Simplex, and IGO businesses; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | operating income and EBITDA, which is an indication of our financial performance; and |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | capital expenditures, which are an indicator of future revenue growth potential and cash requirements. |
|--------|---------|--------------------------------------------------------------------------------------------------------|

----

|              |   | Three months endedJune 30, 2011 |   |   | Three months endedJune 30, 2010 |   |   | Six months endedJune 30, 2011 |   |   | Six months endedJune 30, 2010 |   |
|------------------------|--------|-----------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                   |   | Revenue                                             |   |   | % of TotalRevenue                         |   |   | Revenue                                           |   |   | % of TotalRevenue                       |   |   | Revenue |   |   | % of TotalRevenue |   |   | Revenue |   |   | % of TotalRevenue |   |
|                   |   |                                                |   |   |                                                |   |   |                                              |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Revenues:      |   |                                                |   |   |                                                |   |   |                                              |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Duplex                 |   | $                                                   | 5,351  |   |                                                |   | 28     | %                                                 |   | $      | 6,077                                             |   |   |   | 35 | % |   | $ | 10,460 |   |   |   | 28 | % |   | $ | 12,088 |   |   |   | 36 | % |
| SPOT                   |   |                                                | 4,902  |   |                                                |   | 26     |                                              |   |   | 3,759                                             |   |   |   | 21 |   |   |   | 9,069 |   |   |   | 24 |   |   |   | 7,016 |   |   |   | 21 |   |
| Simplex                |   |                                                | 1,203  |   |                                                |   | 6      |                                              |   |   | 1,112                                             |   |   |   | 6 |   |   |   | 2,424 |   |   |   | 7 |   |   |   | 2,158 |   |   |   | 6 |   |
| IGO                    |   |                                                | 503    |   |                                                |   | 3      |                                              |   |   | 357                                               |   |   |   | 2 |   |   |   | 861 |   |   |   | 2 |   |   |   | 573 |   |   |   | 2 |   |
| Other                  |   |                                                | 1,418  |   |                                                |   | 7      |                                              |   |   | 1,603                                             |   |   |   | 9 |   |   |   | 4,762 |   |   |   | 13 |   |   |   | 3,527 |   |   |   | 11 |   |
| Total Service Revenues |   | $                                                   | 13,377 |   |                                                |   | 70     | %                                                 |   | $      | 12,908                                            |   |   |   | 73 | % |   | $ | 27,576 |   |   |   | 74 | % |   | $ | 25,362 |   |   |   | 76 | % |

|                      |   | Three months endedJune 30, 2011 |   |   | Three months endedJune 30, 2010 |   |    | Six months endedJune 30, 2011 |   |   | Six months endedJune 30, 2010 |   |
|--------------------------------|--------|-----------------------------------------------------|--------|--------|-----------------------------------------------------|--------|---------|---------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                           |   | Revenue                                             |   |   | % of TotalRevenue                         |   |    | Revenue                                           |   |   | % of TotalRevenue                       |   |   | Revenue |   |   | % of TotalRevenue |   |   | Revenue |   |   | % of TotalRevenue |   |
|                           |   |                                                |   |   |                                                |   |    |                                              |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment  Revenues: |   |                                                |   |   |                                                |   |    |                                              |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Duplex                         |   | $                                                   | 511    |   |                                                |   | 3       | %                                                 |   | $      | 577                                               |   |   |   | 3 | % |   | $ | 1,125 |   |   |   | 3 | % |   | $ | 1,055 |   |   |   | 3 | % |
| SPOT                           |   |                                                | 2,491  |   |                                                |   | 13      |                                              |   |   | 2,901                                             |   |   |   | 17 |   |   |   | 4,135 |   |   |   | 11 |   |   |   | 4,690 |   |   |   | 14 |   |
| Simplex                        |   |                                                | 2,479  |   |                                                |   | 13      |                                              |   |   | 915                                               |   |   |   | 5 |   |   |   | 3,658 |   |   |   | 10 |   |   |   | 1,815 |   |   |   | 6 |   |
| IGO                            |   |                                                | 160    |   |                                                |   | 1       |                                              |   |   | 158                                               |   |   |   | 1 |   |   |   | 560 |   |   |   | 1 |   |   |   | 246 |   |   |   | 1 |   |
| Other                          |   |                                                | (19    | )      |                                                |   | — |                                              |   |   | 163                                               |   |   |   | 1 |   |   |   | 199 |   |   |   | 1 |   |   |   | 25 |   |   |   | — |   |
| Total Equipment Revenues       |   | $                                                   | 5,622  |   |                                                |   | 30      | %                                                 |   | $      | 4,714                                             |   |   |   | 27 | % |   | $ | 9,677 |   |   |   | 26 | % |   | $ | 7,831 |   |   |   | 24 | % |

|                                          |   | Three months ended |    |   | Six months ended |   |
|-----------------------------------------------|--------|------------------------------|---------|--------|----------------------------|--------|
|                                          |   | June 30.                |    |   | June 30.              |   |
|                                          |   | 2011                         |    |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
| Average number of subscribers for the period: |   |                         |    |   |                       |   |   |   |   |   |   |   |
| Duplex                                        |   |                         | 94,515  |   |                       |   | 97,941 |   |   |   | 94,912 |   |   |   | 98,891 |   |
| SPOT                                          |   |                         | 170,769 |   |                       |   | 118,659 |   |   |   | 165,260 |   |   |   | 114,804 |   |
| Simplex                                       |   |                         | 128,610 |   |                       |   | 116,288 |   |   |   | 128,021 |   |   |   | 116,962 |   |
| IGO                                           |   |                         | 48,844  |   |                       |   | 62,389 |   |   |   | 50,436 |   |   |   | 62,851 |   |
|                                          |   |                         |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| ARPU (monthly):                               |   |                         |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Duplex                                        |   | $                            | 18.87   |   |                       | $      | 20.68 |   |   | $ | 18.37 |   |   | $ | 20.37 |   |
| SPOT                                          |   |                         | 9.57    |   |                       |   | 10.56 |   |   |   | 9.15 |   |   |   | 10.19 |   |
| Simplex                                       |   |                         | 3.12    |   |                       |   | 3.19 |   |   |   | 3.16 |   |   |   | 3.08 |   |
| IGO                                           |   |                         | 3.43    |   |                       |   | 1.91 |   |   |   | 2.85 |   |   |   | 1.52 |   |

|                          |   | June 30, |    |
|-------------------------------|--------|---------------|---------|
|                          |   | 2011          |    |   | 2010 |   |
| Ending number of subscribers: |   |          |    |   |   |   |
| Duplex                        |   |          | 93,944  |   |   |   | 98,754 |   |
| SPOT                          |   |          | 178,768 |   |   |   | 126,094 |   |
| Simplex                       |   |          | 124,728 |   |   |   | 118,541 |   |
| IGO                           |   |          | 48,389  |   |   |   | 60,978 |   |
| Other                         |   |          | 7,804   |   |   |   | 7,928 |   |
| Total                         |   |          | 453,633 |   |   |   | 412,295 |   |

----

----

----

|                                                 |   | Six Months EndedJune 30, 2011 |    |   | Six Months EndedJune 30, 2010 |   |
|------------------------------------------------------|--------|---------------------------------------------------|---------|--------|---------------------------------------------------|--------|
| Net cash used by operating activities                |   | $                                                 | (5,485  | )      |                                              | $      | (6,232 | ) |
| Net cash used in investing activities                |   |                                              | (65,228 | )      |                                              |   | (130,777 | ) |
| Net cash from financing activities                   |   |                                              | 61,454  |   |                                              |   | 155,409 |   |
| Effect of exchange rate changes on cash              |   |                                              | 330     |   |                                              |   | 907 |   |
|                                                 |   |                                              |    |   |                                              |   |   |   |
| Net increase (decrease) in cash and cash equivalents |   | $                                                 | (8,929  | )      |                                              | $      | 19,307 |   |

----

|                                          |   | PaymentsthroughJune 30, |   |   | Estimated Future Payments |   |
|----------------------------------------------------|--------|------------------------------|--------|--------|-------------------------------------|--------|
| Capital Expenditures                          |   | 2011                         |   |   | Remaining2011                       |   |   | First 6Months of2012 |   |   | Second 6Months of2012 |   |   | Thereafter |   |   | Total |   |
| Thales Alenia Second-Generation Satellites         |   | $                            | 610    |   |                                | $      | 13 |   |   | $ | 1 |   |   | $ | — |   |   | $ | — |   |   | $ | 624 |   |
| Thales Alenia Satellite Operations Control Centers |   |                         | 15     |   |                                |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 15 |   |
| Arianespace Launch Services                        |   |                         | 202    |   |                                |   | 14 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 216 |   |
| Launch Insurance                                   |   |                         | 22     |   |                                |   | 18 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 40 |   |
| Other Capital Expenditures and Capitalized Labor   |   |                         | 32     |   |                                |   | 3 |   |   |   | 1 |   |   |   | — |   |   |   | — |   |   |   | 36 |   |
| Total                                              |   | $                            | 881    |   |                                | $      | 48 |   |   | $ | 2 |   |   | $ | — |   |   | $ | — |   |   | $ | 931 |   |

----

|                                                                            |   | PaymentsthroughJune 30, |   |   | Estimated Future Payments |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|-------------------------------------|--------|
| Capital Expenditures                                                            |   | 2011                         |   |   | Remaining2011                       |   |   | First 6Months of2012 |   |   | Second 6Months of2012 |   |   | Thereafter |   |   | Total |   |
| Hughes next-generation ground component (including research and development expense) |   | $                            | 50     |   |                                | $      | 38 |   |   | $ | 6 |   |   | $ | 10 |   |   | $ | — |   |   | $ | 104 |   |
| Oceus Networks- next-generation ground network                                       |   |                         | 2      |   |                                |   | — |   |   |   | 10 |   |   |   | 11 |   |   |   | 5 |   |   |   | 28 |   |
| Total                                                                                |   | $                            | 52     |   |                                | $      | 38 |   |   | $ | 16 |   |   | $ | 21 |   |   | $ | 5 |   |   | $ | 132 |   |

----

| Principal and Interest Payments (1) |   | Remaining2011 |    |   | First 6Months of2012 |   |    | Second 6Months of2012 |   |   | Total Through2012 |   |
|---------------------------------------------------------|--------|---------------|---------|--------|--------------------------------|--------|---------|---------------------------------|--------|--------|------------------------|--------|
| Facility Agreement (2)                                  |   | $             | — |   |                           | $      | 32      |                            |   | $      | 25                     |   |   | $ | 57 |   |
| 5.00% Convertible Senior Unsecured Notes                |   |          | — |   |                           |   | — |                            |   |   | —                |   |   |   | — |   |
| 8.00% Convertible Senior Unsecured Notes                |   |          | — |   |                           |   | — |                            |   |   | —                |   |   |   | — |   |
| 5.75% Convertible Senior Unsecured Notes (3)            |   |          | 2       |   |                           |   | 2       |                            |   |   | 2                      |   |   |   | 6 |   |
| Subordinated Loan                                       |   |          | — |   |                           |   | — |                            |   |   | —                |   |   |   | — |   |
| Total                                                   |   | $             | 2       |   |                           | $      | 34      |                            |   | $      | 27                     |   |   | $ | 63 |   |

| (1) | All of the indebtedness may be accelerated upon default of related covenants. See “Note 4: Borrowings” of the Consolidated Financial Statements in this Report.  Amounts do not include principal to be paid in common stock or payment in kind interest. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Approximately $586 million of our debt bears interest at a floating rate and, accordingly, we estimated our interest costs in future years. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The Facility Agreement requires that we fund the 5.75% convertible note reserve account by March 1, 2012 equal to 50% and by March 1, 2013 equal to 100% of the notional purchase price of the 5.75% Notes to secure our obligations.  As of June 30, 2011, the estimated notional purchase price was $71.8 million, which we assume will be paid in 2013.  However, failure to fund this account if excess cash flow, as defined, is not available is not an event of default under the Facility Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | following the Contingent Equity release date, we maintain a minimum liquidity of $5.0 million; |
|--------|---------|------------------------------------------------------------------------------------------------|

----

|   | • | we achieve for each period the following minimum adjusted consolidated EBITDA (as defined in the Facility Agreement): |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

| Period          |   | Minimum Amount |                |
|-----------------|--------|---------------------|---------------------|
|            |   |                |                |
| 7/1/10-6/30/11  |   | $                   | (15.0) million |    |
| 1/1/11-12/31/11 |   | $                   | 2.5 million         |   |
| 7/1/11-6/30/12  |   | $                   | 17.5 million        |   |
| 1/1/12-12/31/12 |   | $                   | 55.0 million        |   |
| 7/1/12-6/30/13  |   | $                   | 65.0 million        |   |
| 1/1/13-12/31/13 |   | $                   | 78.0 million   |   |

|   | • | beginning with the period of July 1, 2011 through December 31, 2012, we maintain a minimum debt service coverage ratio of 1.00:1, gradually increasing to a ratio of 1.50:1 through 2019; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | beginning in 2012, we maintain a maximum net debt to adjusted consolidated EBITDA ratio of 9.90:1, gradually decreasing to 2.50:1 through 2019. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | to make payments to complete the procurement of 24 second-generation satellites; |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | to make payments related to our three remaining launches for the remaining 18 of the 24 second-generation satellites; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | • | to fund our working capital; |
|--------|---------|------------------------------|

|   | • | to fund repayment of our indebtedness, both principal and interest; |
|--------|---------|---------------------------------------------------------------------|

|   | • | to fund future operations; and |
|--------|---------|--------------------------------|

|   | • | to make payments to procure and deploy additional second-generation satellites and to upgrade our gateways and other ground facilities. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | • | cash on hand at June 30, 2011 ($24.1 million); |
|--------|---------|------------------------------------------------|

|   | • | cash from our Facility Agreement ($10.4 million was available at June 30, 2011); |
|--------|---------|----------------------------------------------------------------------------------|

----

|   | • | additional debt and equity offerings not yet arranged; |
|--------|---------|--------------------------------------------------------|

|   | • | cash available under our contingent equity account ($60.0 million was available at June 30, 2011); and |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | operating cash flows (if any). |
|--------|---------|--------------------------------|

|   | • | to make payments to procure and deploy our additional second-generation satellites and upgrading our gateways and other ground facilities; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | to fund our working capital and operations, including any growth in our business; and |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | to fund repayment of our indebtedness, both principal and interest, when due. |
|--------|---------|-------------------------------------------------------------------------------|

----

----

|   | • | whether we can maintain a sufficient number of our existing two-way communications service customers; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | whether we can introduce successfully new product and service offerings; and |
|--------|---------|------------------------------------------------------------------------------|

|   | • | whether we can continue to compete successfully against other mobile satellite service providers. |
|--------|---------|---------------------------------------------------------------------------------------------------|

----

| ExhibitNumber |   | Description                                                                                                                                                                                                        |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1           |   | Third Supplemental Indenture dated as of June 14, 2011 between Globalstar, Inc. and U.S. Bank, National Association (Exhibit 4.1 to Current Form on Form 8-K/A filed June 21, 2011)                                |
|          |   |                                                                                                                                                                                                               |
| 4.2           |   | Form of 5.0% Convertible Senior Unsecured Note (Exhibit 4.2 to Current Form on Form 8-K/A filed June 21, 2011)                                                                                                |
|          |   |                                                                                                                                                                                                               |
| 4.3           |   | Subsidiary Guaranty dated as of June 14, 2011 between Globalstar, Inc., certain of its subsidiaries and U.S. Bank, National Association  (Exhibit 4.3 to Current Form on Form 8-K/A filed June 21, 2011) |
|          |   |                                                                                                                                                                                                               |
| 4.4           |   | Form of Common Stock Purchase Warrant (Exhibit 4.4 to Current Form on Form 8-K/A filed June 21, 2011)                                                                                                              |
|          |   |                                                                                                                                                                                                               |
| 10.1          |   | Subscription Agreement dated June 14, 2011 (Exhibit 10.1 to Current Form on Form 8-K/A filed June 21, 2011)                                                                                                        |
|          |   |                                                                                                                                                                                                               |
| 10.2          |   | Voting Agreement dated June 14, 2011 among Thermo Funding Company LLC, its affiliates and the Company (Exhibit 10.2 to Current Form on Form 8-K/A filed June 21, 2011)                                             |
|          |   |                                                                                                                                                                                                               |
| 10.3          |   | Registration Rights Agreement dated June 14, 2011 (Exhibit 10.3 to Current Form on Form 8-K/A filed June 21, 2011)                                                                                                 |
|          |   |                                                                                                                                                                                                               |
| 31.1          |   | Section 302 Certification of Chief Executive Officer                                                                                                                                                               |
|          |   |                                                                                                                                                                                                               |
| 31.2          |   | Section 302 Certification of Chief Financial Officer                                                                                                                                                               |
|          |   |                                                                                                                                                                                                               |
| 32.1          |   | Section 906 Certification                                                                                                                                                                                          |

----

|                 |   | GLOBALSTAR, INC.                                  |
|----------------------|--------|---------------------------------------------------|
|                 |   |                                              |
|                 |   | By:                                               |
|                 |   | /s/ James Monroe III                              |
| Date: August 5, 2011 |   |                                              |
|                 |   | James Monroe III                                  |
|                 |   | Chief Executive Officer                           |
|                 |   |                                              |
|                 |   | By:                                               |
|                 |   | /s/ Dirk Wild                                     |
| Date: August 5, 2011 |   |                                              |
|                 |   | Dirk Wild                                         |
|                 |   | Senior Vice President and Chief Financial Officer |

----