IMPORTANT STEP TOWARDS DELIVERING ON GOV. JIM DOUGLAS' E-STATE INITIATIVE

(Montpelier, VT.) - Lt. Governor Brian Dubie today announced a research and development agreement with TerreStar Networks Inc. (TerreStar) establishing a pilot project for the deployment and testing of TerreStar’s wireless broadband and telecommunications services to rural and underserved areas in Vermont. Virginia-based TerreStar is an innovative mobile satellite and terrestrial communications network provider, authorized to operate in the United States and Canada, and a majority owned subsidiary of Motient Corporation (MNCP).

Vermont’s Commissioner of Information & Innovation and Chief Information Officer (CIO) Thomas Murray will spearhead the pilot project, said the Lt. Governor.

Today, Dubie and the TerreStar team also briefed Gov. Jim Douglas on what the pilot project will mean for the State of Vermont and how it can enhance Douglas’ E-State Initiative to provide universal cellular and broadband coverage everywhere and anywhere within Vermont’s borders. They also discussed strategies to quantify costs, identify obstacles and measure the effectiveness of TerreStar’s next generation communications network at providing wireless broadband and other telecommunications services to rural and remote communities in Vermont.

The pilot project will not require state funds. Once in place, the network will be available for all voice and data service providers currently operating in Vermont, as well as new providers.

“Pilot projects that test new and emerging technologies, like this one with TerreStar, are crucial to overcoming the challenges Vermont has encountered to bringing wireless and broadband service to all Vermonters,” Lt. Governor Dubie said. “We’re grateful that TerreStar has chosen to conduct this important project in Vermont, and is making an investment to explore the feasibility of deploying their unique telecommunications network here.”

TerreStar (www.terrestar.com ) is an emerging mobile network operator that plans to build, own and operate North America's first 4G (4th Generation Communications System) integrated mobile satellite and terrestrial communications network that will provide universal access and tailored applications throughout North America over conventional wireless devices. The company is licensed to operate in both the US and Canada. TerreStar expects to be the first to offer customer-designed products and applications over a fully optimized 4G IP network.

“Thanks to the work done by the Governor Douglas, Lt. Governor Dubie and their team, Vermont is well positioned to become the nation’s first true ‘e-state’ by 2010,” said Robert H. Brumley, President and CEO of TerreStar. “TerreStar looks forward to working with the State of Vermont to understand how our unique telecommunications network can help deliver broadband and wireless communications to rural and underserved areas of Vermont.”

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