TerreStar Corporation, EB (Elektrobit) and Flextronics Agree on Manufacturing Services for TerreStar GENUS, the First Satellite-Terrestrial Smartphone

OULU, Finland, RESTON, Virginia and SINGAPORE, December 2 - Elektrobit Inc, a subsidiary of EB, Elektrobit Corporation (OMX: EBC1V),
a leading developer of cutting-edge embedded technology solutions for
automotive and wireless industries, and mobile communications provider
TerreStar Corporation (Nasdaq: TSTR), have expanded their relationship to
include EB's provision of turnkey product delivery services to TerreStar for
the TerreStar(TM) GENUS(TM) Smartphone, an EB design. EB has sub-contracted
with leading Electronics Manufacturing Services (EMS) provider Flextronics
(Nasdaq: FLEX), to help provide these product delivery services.

The TerreStar GENUS Smartphone is an innovative mobile device that
combines 3G terrestrial wireless capability with satellite voice and data
services - all in a standard smartphone size and form factor. The TerreStar
GENUS provides an enhanced end-user experience by leveraging the Windows
Mobile(R) 6.5 operating system, rich smartphone functionality and premium
features, such as a touchscreen, WiFi, Bluetooth(R), GPS and a QWERTY
keyboard, with satellite ubiquity and security. The TerreStar GENUS can be
used throughout the United States, Puerto Rico, the U.S. Virgin Islands and
offshore coastal waters, and is intended to work as a user's everyday
cellular smartphone, with satellite access capability as a secondary option,
when needed.

To provide TerreStar the agreed product delivery services, EB has
sub-contracted with Flextronics for comprehensive electronics manufacturing
services, forward and reverse logistics, and aftermarket services support.
This partnership will provide TerreStar with cost efficient manufacturing and
complete supply chain visibility for the TerreStar GENUS Smartphone. By
working with EB and its partner network, TerreStar can align its business
objectives with device demand and an ongoing logistics and product lifecycle
strategy.

"We remain committed to transforming the mobile experience by bringing
the next generation of handheld solutions to market that will provide true
mobile convergence and ubiquitous voice, data and video access across
cellular and satellite connectivity options," said Steve AuBuchon,
TerreStar's vice president of product management. "Partnering with EB and
Flextronics was a strategic move, as each brings extensive expertise from
across the wireless value chain to enable TerreStar to quickly and
cost-effectively meet its aggressive go-to-market initiatives."

Flextronics was chosen for its proven track record of delivering cost
effective manufacturing and logistics services to OEMs of mobile devices.
They will manufacture and provide support services initially from its
Linkoping, Sweden location.

"We understand TerreStar's need to assemble the right set of product
delivery business assets to enable them to bring this new category of
integrated satellite-terrestrial devices to market," said Francois Barbier,
president Global Operations, Flextronics. "Our goal is to work closely with
EB to ensure TerreStar has an efficient supply chain; offering operational
advantages based on fewer touch points and lower cost. Our SBS (Special
Business Solutions) organization enables our Customers to utilize Flextronics
scalability to support future business growth. This is another great win for
our SBS team."

The terms of today's agreement with TerreStar highlight EB's newly
announced business model to offer complete products leveraging manufacturing
partners. This service is in addition to EB's current service offering:
pairing EB's technology assets and advanced research and development services
with third party components to engineer creative wireless ecosystems.

"We are pleased to expand our long-standing relationship with TerreStar
to include product delivery services, as we continually look to offer as much
value as possible in every business relationship we engage in," said Jani
Lyrintzis, vice president, Wireless Solutions, EB. "Together with our
partners, we are working to deliver the first satellite-terrestrial
smartphone to one of the world's most recognized mobile operators."

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.terrestar.com.

About TerreStar Networks Inc.

TerreStar Networks (www.terrestar.com), a majority owned subsidiary of
TerreStar Corporation (NASDAQ: TSTR), plans to offer a reliable, secure and
resilient satellite terrestrial mobile broadband network that will provide
voice, data and video services dedicated to helping solve the critical
communication and business continuity challenges faced by government,
emergency responders, enterprise businesses and rural communities. TerreStar
expects to offer next generation mobile communications through a network of
partners and service providers to users who need "anywhere" coverage
throughout the United States.

About Flextronics

Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics
is a leading Electronics Manufacturing Services (EMS) provider focused on
delivering complete design, engineering and manufacturing services to
automotive, computing, consumer, industrial, infrastructure, medical and
mobile OEMs. Flextronics helps customers design, build, ship, and service
electronics products through a network of facilities in 30 countries on four
continents. This global presence provides design and engineering solutions
that are combined with core electronics manufacturing and logistics services,
and vertically integrated with components technologies, to optimize customer
operations by lowering costs and reducing time to market. For more
information, please visit www.flextronics.com.

About EB (Elektrobit Corporation)

EB creates advanced technology and turns it into enriching end-user
experiences. EB is specialized in demanding embedded software and hardware
solutions for wireless and automotive industries. The net sales for the year
2008 totalled MEUR 172.3. Elektrobit Corporation is listed on NASDAQ OMX
Helsinki. www.elektrobit.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.

Windows Mobile is a registered trademark of Microsoft Corporation.
Bluetooth is a registered trademark of Bluetooth SIG.

    For more information, please contact:

    Kelly Adams, Director, Marketing and Communications
    TerreStar Networks
    Mobile: +1-703-483-7966
    Email: Kelly.Adams@terrestar.com

    Mari Kahkonen, Director, Marketing
    EB Wireless Solutions
    Mobile: +358-40-344-5348
    Email: mari.kahkonen@elektrobit.com

    Renee Brotherton
    Flextronics, Vice President, Corporate Communications
    Phone: +1-408-576-7189
    Email: renee.brotherton@flextronics.com

    Chris Fallon
    Ruder Finn for TerreStar Networks, EB
    Phone: +1 212-715-1691
    Email: fallonc@ruderfinn.com

Kelly Adams, Director, Marketing and Communications, TerreStar Networks, +1-703-483-7966, Kelly.Adams at terrestar.com; Mari Kahkonen, Director, Marketing, EB Wireless Solutions, +358-40-344-5348, mari.kahkonen at elektrobit.com; Renee Brotherton, Flextronics, Vice President, Corporate Communications, +1-408-576-7189, renee.brotherton at flextronics.com; Chris Fallon, Ruder Finn for TerreStar Networks, EB, +1-212-715-1691, fallonc at ruderfinn.com