LONDON, May 25 /PRNewswire/ --

TerreStar Europe Limited, an indirect, majority-owned subsidiary of
TerreStar Corporation (Nasdaq: TSTR), announced that it has brought an action
against the European Commission before the Court of First Instance in
Luxembourg, seeking the annulment of the Decision of 13 May 2009 selecting
two operators of pan-European mobile satellite services (MSS) in the EU.

TerreStar Europe believes that a prompt and narrowly focused review by
the Court can address the Commission's mistake without interfering with the
Commission's goals for this process. The Commission's Decision excluded
TerreStar Europe on a technicality at a preliminary stage of the selection
procedure. The action argues that the Commission misread TerreStar Europe's
submission, finding an inconsistency where none existed. In addition, the
Commission failed to investigate the supposed inconsistency -- and notably
failed to review the clarifications voluntarily submitted by TerreStar
Europe, which fully explained the issue.

TerreStar Europe asked the Court to rule on this case quickly and to
suspend the Decision until the Court issues its ruling. TerreStar Europe
believes that it serves no one's interest for the resolution of the selection
and authorization of S-Band MSS systems to be unduly delayed.

About TerreStar Europe Limited:

TerreStar Europe Limited, an indirect, majority-owned subsidiary of
TerreStar Corporation (Nasdaq: TSTR), plans to develop the first
next-generation mobile satellite integrated with terrestrial communications
networks that will provide universal access and tailored applications
throughout Europe over conventionally-sized wireless devices.

About TerreStar Corporation:

TerreStar Corporation is the controlling shareholder of TerreStar
Networks Inc. and TerreStar Global Ltd. For additional information on
TerreStar Corporation, please visit the company's website at
www.terrestarcorp.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 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.

For enquiries:
    TerreStar Europe Limited
    +44-845-226-4348
    info@terrestar.eu