XM Satellite Radio and Starbucks Hear Music to Launch New CD Series

XM Satellite Radio and Starbucks Hear Music to Launch New CD Series

First CD in the Series Debuts on August 3 and Features Exclusive, New Recordings From Tracy Chapman, Jewel and Jason Mraz

SEATTLE and WASHINGTON, July 26 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ:XMSR), the nation's leading satellite radio provider with more than 4.4 million subscribers, and Starbucks (NASDAQ:SBUX) Hear Music today announced that they will further expand their relationship with the launch of a new proprietary series of multi-artist music compilation CDs. Co-produced by XM and Hear Music, the debut CD in the series, Hear Music(TM) XM Radio Sessions, Vol. 1, features newly recorded, never-before-heard tracks from both established and emerging artists. The CD will be available exclusively at Starbucks Company-operated locations in the U.S. and Canada and online at http://www.starbucks.com/hearmusic beginning August 3, 2005.

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Hear Music(TM) XM Radio Sessions, Vol. 1 starts the series with an impressive collection of exclusive, previously unreleased tracks from a diverse group of artists. The CD features new, alternate recordings of two original songs apiece from acclaimed artists Tracy Chapman, Jewel and Jason Mraz. In addition, all three singer-songwriters contribute a cover song to the album, with Chapman interpreting the Ben E. King classic "Stand By Me," Jewel updating Nina Simone's "The Other Woman," and Mraz taking on Bjork's "Unravel." The disc also offers two songs apiece from up-and-coming WEA artists James Blunt and the John Butler Trio.

Each compilation in the series will feature exclusive tracks culled from special sessions with a revolving roster of established and emerging artists across a wide range of genres. The project is reflective of XM and Starbucks Hear Music's commitment to supporting emerging artists and more deeply exploring the work of established acts.

"The debut of our first CD, co-produced with our partner Starbucks and their Hear Music group, is a significant milestone for the XM-Starbucks relationship," said XM Satellite Radio President and CEO Hugh Panero. "The Hear Music(TM) XM Radio Sessions CD series offers consumers another way to experience XM's great music content, further extends the XM brand and provides additional revenue opportunities."

"With this new CD series, we are realizing the potential of our alliance with XM Satellite Radio to create compelling, exclusive content for Starbucks customers," said Ken Lombard, president, Starbucks Entertainment. "We look forward to continuing to collaborate with XM, the leading satellite radio provider, to help transform the way music fans discover and acquire music."

The debut CD in the series, Hear Music(TM) XM Radio Sessions Vol. 1, is being offered for $14.95 in the U.S. and $18.95 in Canada.

The Hear Music(TM) XM Radio Sessions CD series is the latest project in a comprehensive content and marketing alliance between XM Satellite Radio and Starbucks. In October 2004, XM launched Hear Music(TM) (XM Channel 75), one of 67 commercial-free XM music channels. The Hear Music(TM) channel exposes XM subscribers to a wide range of new and established artists across a variety of music genres, including artists from the diverse Hear Music catalog. XM programming from the Hear Music(TM) channel can be heard in more than 4,600 Starbucks Company-operated locations in the U.S. Starbucks customers can learn more about XM Satellite Radio and the Hear Music(TM) channel through in-store materials including informational brochures, point-of-purchase displays and online at http://www.starbucks.com/hearmusic and http://www.xmradio.com/.

Complete Hear Music XM Radio Sessions, Vol. 1 Track Listing:

1. Give Me One Reason -- Tracy Chapman
2. Baby Can I Hold You -- Tracy Chapman
3. Stand By Me -- Tracy Chapman
4. Intuition -- Jewel
5. Louisa and Her Blue Guitar -- Jewel
6. The Other Woman -- Jewel
7. Unravel -- Jason Mraz
8. The Boy's Gone -- Jason Mraz
9. Plain Jane -- Jason Mraz
10. Peaches & Cream -- John Butler Trio
11. Zebra -- John Butler Trio
12. High -- James Blunt
13. Wisemen -- James Blunt

About Starbucks Hear Music

Founded in 1990, and acquired by Starbucks Coffee Company in 1999, Starbucks Hear Music is the voice of music at Starbucks. Starbucks Hear Music is dedicated to creating a new and convenient way for consumers to discover, experience and acquire all genres of great music through its CD compilations and music programming for Starbucks coffeehouses worldwide, as well as its innovative partnerships with other music labels to produce, market and distribute both exclusive and non-exclusive music. In 2004, Starbucks Hear Music launched a 24-hour digital music channel with XM Satellite Radio (XM Channel 75), the Starbucks Hear Music(TM) Coffeehouse in Santa Monica where customers can select from over 15,000 CDs or burn their own custom mixes, and the Starbucks Hear Music(TM) media bars, a service that offers custom CD burning at select Starbucks retail locations in Seattle and Austin. Starbucks Hear Music(TM) CDs are featured at Hear Music and Starbucks retail locations, as well as online at http://www.starbucks.com/hearmusic.

About XM Satellite Radio

XM is America's number one satellite radio service with more than 4.4 million subscribers. Broadcasting live daily from studios in Washington, DC, 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: commercial-free music channels, premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information. 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's industry-leading products are available at consumer electronics retailers nationwide. 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; Starbucks Entertainment

CONTACT: Anne-Taylor Griffith, +1-202-380-4151, or Michael Jensen,
+1-626-585-9575, both of XM Satellite Radio; or Elisa Wiefel,
+1-323-202-1069, for Starbucks Entertainment; or Emily Glassman of Starbucks
Entertainment, +1-206-318-7933

Web site: http://www.xmradio.com/
http://www.starbucks.com/hearmusic

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