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Monday, July 09, 2007

SIRIUS, XM Highlight Growing Momentum in Favor of Merger

SIRIUS, XM Highlight Growing Momentum in Favor of Merger

Strong and Diverse Public Support Demonstrates Merger is in the Public Interest

NEW YORK and WASHINGTON, July 9 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ:XMSR) and SIRIUS Satellite Radio (NASDAQ:SIRI) said today that the volume, diversity and strength of the public comments filed with the Federal Communications Commission (FCC) during its public comment period demonstrate persuasively that their merger is in the public interest and should be approved.

"The support for our merger is as diverse as the programming we provide," said Mel Karmazin, CEO of SIRIUS Satellite Radio. "The thousands of pro merger comments from organizations representing diverse populations and interests, individuals, businesses, and experts plainly demonstrate that the combination of SIRIUS and XM is in the public interest."

"These FCC comments strongly validate our contention that the merger will produce substantial public interest benefits," said Gary Parsons, Chairman of XM Satellite Radio. "These include greater programming choices, better prices, rigorous competition and more rapid innovation."

Since the FCC opened its docket on the merger, more than 3,500 individuals have filed in support of combining the two companies. The FCC docket also includes positive comments from 20 organizations and businesses, representing a broad spectrum of Americans. Among the most notable names are Circuit City, the NAACP and League of United Latin American Citizens, American Trucking Associations, National Council of Women's Organizations, League of Rural Voters and American Values.

The groups filing comments include a wide array of minority, women, religious and rural organizations who support the merger in part because of its capacity to strengthen the diverse programming satellite radio already provides for their members, and businesses and conservative organizations who tout the impact the merger will have on innovation and competition. Many of the comments also cite the combined company's plan to offer one or more new, lower priced services below $12.95, maintain current services at $12.95 and offer the best of both services at a modest premium over today's price. Others who commented noted the plan to offer a "block and rebate" feature, by which subscribers can opt out of certain channels they find objectionable and receive a credit on their monthly subscription.

These and other benefits have also been detailed in FCC filings by experts and think tanks including former FCC Commissioner Harold Furchtgott-Roth, former FCC Chief Economist Thomas Hazlett and the Competitive Enterprise Institute.

The merger also has received the editorial endorsement of leading newspapers including The Wall Street Journal, USA Today, LA Times and Washington Times.

The following organizations have made public comments in support of the XM-SIRIUS merger:

-- 60 Plus Association
-- African Methodist Episcopal Church, Dist. 2
-- American Trucking Associations
-- American Values
-- Americans for Tax Reform
-- Circuit City
-- Competitive Enterprise Institute
-- FamilyNet
-- Free State Foundation
-- Hispanic Federation
-- League of United Latin American Citizens
-- NAACP
-- National Black Chamber of Commerce
-- National Council of Women's Organizations
-- National Taxpayers Union
-- NY State Fed. of Hispanic Chambers
-- The Latino Coalition
-- Women Impacting Public Policy
-- League of Rural Voters
-- Women Involved in Farm Economics

The National Association of Broadcasters and its industry allies are expected to file comments today arguing satellite radio comprises its own distinct market and does not compete with terrestrial radio. However, the government filings and statements of numerous broadcast interests, including NAB and companies like Clear Channel, CBS, Spanish Broadcasting System, Entravision, Entercom, Univision, Citadel, Cox, Cumulus Media, Emmis Communications, Beasley and Westwood One, tell a much different story. For example:

"Our broadcasting businesses face increasing competition from new broadcast technologies, such as...satellite television and radio... These new technologies and alternative media platforms compete with our radio and television stations for audience share and advertising revenue, and in the case of some products, allow listeners and viewers to avoid traditional commercial advertisements." -Spanish Broadcasting System, Inc. (2006 Form 10- K, filed March 16, 2007)

"In 2006, we have satellite and Internet radio. And barely a day passes without the introduction of a new competing device or service. But we have news for our competitors: We will beat you -- as we have beaten those change agents in the past." -David K. Rehr, President and CEO, National Association of Broadcasters (2006 NAB Radio Show, September 21, 2006)

"Our broadcasting businesses face increasing competition from new broadcast technologies, such as broadband wireless and satellite television and radio, and new consumer products, such as portable digital audio players and personal digital video recorders." Clear Channel Communications (2005 Form 10-K; page 24)

SIRIUS and XM will file reply comments by the July 24 deadline. Following that, regulators (FCC and DOJ) will consider the merger. Pending regulatory approval, both companies expect to close on the merger by the end of 2007.

More information on the SIRIUS-XM merger can be found at http://www.siriusmerger.com/ or http://www.xmmerger.com/.

About SIRIUS

On February 19, 2007 SIRIUS and XM Satellite Radio entered into a merger agreement to combine the companies' businesses. Boards of both companies have approved the merger. The completion of the merger is subject to various closing conditions, including obtaining the approval of stockholders and XM's stockholders and receiving certain regulatory and anti-trust approvals, including from the Federal Communications Commission (FCC) and the Department of Justice (DOJ) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. SIRIUS believes that its merger with XM will close by the end of 2007.

SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR, NBA and NHL, and broadcasts live play-by-play games of the NFL, NBA and NHL, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 75 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS products for the car, truck, home, RV and boat are available in more than 25,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.

SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln, Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on http://www.sirius.com/ to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

About XM

XM (NASDAQ:XMSR) is America's number one satellite radio company with more than 8 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. 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/.

Important Additional Information Will be Filed with the SEC

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of SIRIUS and XM plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of SIRIUS and XM. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at http://www.sec.gov/. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC can also be obtained by directing a request to SIRIUS Satellite Radio Inc., 1221 Avenue of the Americas, New York, NY 10020, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and its proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on April 21, 2006, and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007 and its proxy statement for its 2006 annual meeting of shareholders, which was filed with the SEC on April 25, 2006. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC when they become available.


Source: SIRIUS Satellite Radio

CONTACT: Patrick Reilly, Media Relations of SIRIUS, +1-212-901-6646,
PReilly@siriusradio.com; Joele Frank or Eric Brielmann of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449, ebrielmann@joelefrank.com, both
for SIRIUS; or Nathaniel Brown, Media Relations, +1-212-708-6170,
Nathaniel.Brown@xmradio.com, or Chance Patterson, +1-202-380-4318,
Chance.Patterson@xmradio.com, both of XM

Web site:

http://www.sirius.com/
http://www.xmradio.com/
http://www.siriusmerger.com/
http://www.xmmerger.com/


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