XM Satellite Radio Surpasses Four Million Subscribers

XM Satellite Radio Surpasses Four Million Subscribers

More Than 70 Percent of Satellite Radio Subscribers Have XM

WASHINGTON, May 16 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ:XMSR), the nation's leading satellite radio provider, announced today that it exceeded four million subscribers last week, extending its significant leadership position in the satellite radio industry.

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"By adding one million new subscribers in less than five months, XM is clearly the fastest-growing satellite radio company," said Hugh Panero, president and CEO of XM Satellite Radio. "Our tremendous subscriber growth is a testament to XM's ever-increasing momentum and we look forward to hitting our target of 5.5 million subscribers by the year's end.

"XM has continued to increase its subscriber base at an impressive rate since its launch. It took 23 months for XM to reach its first one million subscribers. It took eight more months to reach our second million, six months to hit three million, and less than five months to exceed four million," Panero said.

XM is one of the fastest-growing entertainment media ever. As a mass medium, XM has reached four million subscribers in less time than cable television or online subscription services -- two of the nation's most successful subscriber businesses. Consumers have also adopted XM faster than CD players, MP3 players, cell phones, personal computers, local radio, broadcast TV, satellite TV, or digital video recorders, according to data from Consumer Electronics Association (CEA) Market Research. More than 70 percent of satellite radio subscribers have XM.

"XM remains focused on providing compelling content, developing innovative radios and expanding our distribution channels at retail outlets and automobile dealerships -- an approach that has successfully led us to four million subscribers, and one we will continue to pursue to 20 million subscribers by 2010 and beyond," said Panero.

About XM Satellite Radio

XM is America's number one satellite radio service with more than four million subscribers. Broadcasting live daily from studios in Washington, D.C., New York City and Nashville at the Country Music Hall of Fame, XM's 2005 lineup includes more than 150 digital channels of choice from coast to coast: 67 commercial-free music channels, featuring hip hop to opera, classical to country, bluegrass to blues; 64 channels of premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM Satellite Radio is the satellite radio leader in sports programming, offering thousands of live sporting events every year. XM is the official satellite radio network for Major League Baseball, NASCAR, the Indy Racing League, the PGA TOUR, and the college sports conferences ACC, Pac-10, and Big Ten. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 120 different vehicle models for 2005. XM also is available in Avis, National, and Alamo rental cars. XM is the exclusive in-flight entertainment service for AirTran Airways, and will soon be available on JetBlue flights. Consumers can experience XM over the Internet through XM Radio Online at http://listen.xmradio.com/. Soon, XM and America Online will launch the world's largest combined digital radio network to be promoted to an audience of 100 million consumers online. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-4-05. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

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Source: XM Satellite Radio

CONTACT: David Butler of XM Satellite Radio, +1-202-380-4317, or
david.butler@xmradio.com

Web site: http://www.xmradio.com/
http://listen.xmradio.com/

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