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TerreStar Demonstrates First Satellite IMS VOIP Call in Comneon Test Lab

Today, at the 2009 International CES, TerreStar Networks Inc. and Comneon, a leading supplier of protocol stack software for mobile communications, announced that the integrated satellite-terrestrial multi-mode handset designed by EB (Elektrobit Corporation) for TerreStar has successfully demonstrated VOIP connectivity using satellite simulation in a Comneon test lab.

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TerreStar expects to be North America’s first integrated satellite-terrestrial communications network to utilize an IP Multimedia Subsystem (IMS) to deliver ubiquitous access and personalized applications and services over wireless devices, such as mobile phones and personal digital assistants (PDAs). The TerreStar handset uses the Comneon IMS Device Framework as a client solution for its next generation integrated mobile satellite and terrestrial communications network.

TerreStar is planning to launch the world’s most powerful commercial communications satellite in June 2009 and is finalizing development of its first-of-its-kind multi-mode integrated satellite-terrestrial handset – together with its design partners EB and Comneon, a fully owned subsidiary of Infineon technologies. This integrated platform is designed to enable mobile voice, data and video services over a reliable and secure satellite-terrestrial mobile broadband network to government, emergency responders, enterprise and consumers interested in “anywhere” coverage throughout the United States and Canada.

Comneon’s portable IMS terminal framework, executable across a wide variety of operating systems and processor architectures, will allow TerreStar to provide users increased flexibility and ease of access to mobile applications – across a large number of terminal types and diverse customer segments.

“Comneon is a key contributor to our handset ecosystem, and is creating innovative solutions that will help us bring to market an end-to end, state-of-the-art device and feature-set,” said David Marshack, Senior Vice President for Product and Device Technology. “TerreStar plans to use this technology to deliver maximum flexibility, reliability and performance.”

“We are proud to help make the TerreStar vision of a fully integrated satellite-terrestrial multi-mode handset a reality,” said Christian Mucke, Managing Director of Comneon. “Comneon’s leadership and experience in mobile software solutions, innovation and operational capabilities can help enable TerreStar to deploy the first integrated satellite and terrestrial broadband network. This will help bring ubiquitous IP applications and services to mobile customers in North America.”

FOR HANDSET DEMONSTRATIONS: TERRESTAR IS OFFERING APPOINTMENTS FOR DEMONSTRATIONS, ON JANUARY 7 OR 8, AT CES OF THE GSM VOICE/DATA CAPABILITIES ON THE TERRESTAR INTEGRATED SATELLITE-TERRESTRIAL SMARTPHONE PDA—TO ARRANGE A DEMO, PLEASE CONTACT DIDI BLACKWOOD AT +1.202.494.6464. TerreStar will demonstrate critical applications – Web browsing and Voice over Internet Protocol (VoIP) calling using the industry’s first-ever dual-mode satellite-terrestrial HSPA reference design PDA form factor.

About Comneon

Comneon is a leading supplier of protocol stack software for mobile communications. Comneon licenses its software to a wide range of customers, including large and small semiconductor companies, established network operators, and some of the leading mobile terminal manufacturers. As a fully owned subsidiary of Infineon Technologies AG, Comneon also provides software for Infineon’s mobile phone platforms. Further information is available at http://www.comneon.com.

About TerreStar Networks Inc.

TerreStar Networks (http://www.terrestar.com), a majority owned subsidiary of TerreStar Corporation (NASDAQ: TSTR), expects to offer wholesale mobile voice, data and video service services and plans to offer a reliable and secure satellite-terrestrial mobile broadband network to government, emergency responders, enterprise and consumer users interested in “anywhere” coverage throughout North America.