TerreStar Global Announces Capital Raise

TerreStar Global Ltd. ("TerreStar Global"), a majority-owned
subsidiary of TerreStar Corporation (formerly Motient Corporation)
("TerreStar"), announced today that it intends to offer securities in
a private offering. While neither the terms of the securities nor the
amount of the proposed financing have been determined, TerreStar
anticipates that the ultimate effect of the financing will be to
dilute its ownership interest in TerreStar Global to below 50%. There
can be no assurance that the financing will be completed. TerreStar
Global intends to use the net proceeds from the offering to commence
the construction of its satellite, TerreStar-EUR, to secure European 2
GHz MSS S-band spectrum through participation in the European
milestone review process, and for general corporate purposes.

TerreStar Global's private offering, which is subject to market
and other customary conditions, will be made within the United States
only to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act") and outside
the United States pursuant to Regulation S under the Securities Act.
The securities have not been registered under the Securities Act, or
the securities laws of any state or other jurisdiction, and may not be
offered or sold in the United States without registration or an
applicable exemption from the Securities Act.

This announcement is neither an offer to sell nor a solicitation
of an offer to buy TerreStar Global securities.

About TerreStar Global Ltd.

TerreStar Global Ltd., a majority-owned subsidiary of TerreStar
Corporation (formerly Motient Corporation), plans to develop, build
and operate an all internet protocol-based integrated satellite and
terrestrial communications network to provide mobile communication
services throughout Europe.

About TerreStar Corporation

TerreStar Corporation (formerly Motient Corporation) is the
controlling shareholder of TerreStar Networks Inc. and TerreStar
Global Ltd., and a shareholder of SkyTerra Communications and Mobile
Satellite Ventures LP. For additional information on TerreStar, please
visit the company's website at www.motient.com.

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, 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.