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STRATEGIS SAYS MSS RISKS SQUEEZE

WASHINGTON, D.C.-The Strategis Group projected the number of people who use cellular
service will increase from 285 million today, to 700 million by 2003, leaving the world’s mobile satellite service
operators scrambling for new subscribers.

The challenge before MSS operators will be to target those markets
unserved by cellular systems, and to structure the pricing of MSS and satellite handsets such that global roamers can
justify using them, said The Strategis Group.

The Washington, D.C.-based firm added the Asia-Pacific region is
expected to have the largest subscriber base, accounting for more than one-third of the world’s total. At the country
level, China, Brazil, the United States and Russia will serve as the industry’s largest markets.

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