TerreStar Announces
Cost Reduction Measures - Maintains Business Strategy
(22 April 2008) TerreStar Corporation
today announced that its majority owned subsidiary TerreStar Networks Inc. is
implementing certain cost reduction measures including a headcount reduction of
79 management and non-management positions across the
company.
This reduction will account for savings of
approximately 45 percent in base salary expense and includes the four
executives who resigned April 16, 2008.
"We believe these cost reduction
measures are a realistic and appropriate response to the current economic
environment and are in keeping with the prudent capital and financing plan we
have mapped out," said Jeffrey Epstein, TerreStar President. "By taking these
actions, we strengthen our financial position while maintaining our focus on
launching our satellite, developing an integrated 4G handset and delivering on
our strategic vision of creating the nation's first integrated
satellite-terrestrial mobile communications network (MSS/ATC)."
With
these expense reduction measures, the Company expects to be internally funded
into mid-FY2009.
About TerreStar Corporation
TerreStar
Corporation is the controlling shareholder of TerreStar Networks Inc. and
TerreStar Global Ltd., and a shareholder of SkyTerra
Communications.
About TerreStar Networks Inc.
TerreStar, a
majority-owned subsidiary of TerreStar Corporation, plans to build, own and
operate North America's first 4G integrated mobile satellite and terrestrial
communications network that will provide universal access and tailored
applications throughout North America over conventional wireless devices.
TerreStar expects to be the first to offer customer-designed products and
applications over a fully optimised 4G IP network.
Statement under the
Private Securities Litigation Reform Act:
This press release may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act, with respect to the strategy of TerreStar Corporation,
its plans, and the transactions described in this press release. Such
statements generally include words such as could, can, anticipate, believe,
expect, seek, pursue, proposed, potential and similar words and terms in
connection with future results. We assume no obligation to update or supplement
such forward-looking statements.
(source: TerreStar Networks)
