Sirius Xm News

SIRIUS XM Radio Chosen as New Corporate Name
Combined Company Has Over 18.5 Million Subscribers, Annualized Second Quarter Revenue Exceeding $2.4 Billion
Company to Offer Consumers Best of Both Services, While Maximizing Significant Efficiencies
SIRIUS XM Reiterates Financial Guidance; Expects 2009 Synergies of $400 million and 2009 Adjusted EBITDA of over $300 Million

SIRIUS Satellite Radio and XM Satellite Radio today
announced that they have completed their merger, resulting in the
nation’s premier radio company. The new company plans to change its
corporate name to SIRIUS XM Radio Inc. The combined company’s stock
will continue to be traded on the Nasdaq Global Select Market under the
symbol “SIRI.”

SIRIUS XM Radio begins day one with over 18.5 million subscribers,
making it the second-largest radio company, based upon revenue, in the
country; and, based upon subscribers, the second largest subscription
media business in the U.S. With under 10% penetration of the home and
car market, the opportunity for continued growth is significant.

“I
am delighted to announce the completion of this exciting merger between
SIRIUS and XM,” said Mel Karmazin, CEO of SIRIUS XM Radio. “We have
worked diligently to close this transaction and we look forward to
integrating our best-in-class management teams and operations so we can
begin delivering on our promise of more choices and lower prices for
subscribers.”

“Every one of our constituencies is a winner. Combined, SIRIUS XM
Radio will deliver superior value to our shareholders. By offering more
compelling packages and the best content in audio entertainment, we are
well positioned for increased subscriber growth. Our laser focus on
subscribers will continue and listeners can be assured that there will
be no disruption in service. We also believe that the completion of the
merger will eliminate any confusion that has been lingering in the
marketplace,” added Karmazin.

XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM.

Competitive New Options for Consumers

SIRIUS
XM Radio broadcasts more than 300 channels of programming, including
exclusive radio offerings from Howard Stern, Oprah, Opie & Anthony
and Martha Stewart, among others. SIRIUS XM Radio will offer these
expanded options to consumers through arrangements with the world’s
leading automakers and its relationships with nationwide retailers.

As
a result of the merger, SIRIUS XM Radio will also be able to offer
consumers new packages in audio entertainment, including the first-ever
a la carte programming option in subscription media. In addition to two
a la carte options, the new packages will include: “Best of Both,”
giving subscribers the option to access certain programming from the
other network; discounted Family Friendly packages; and tailored
packages including “Mostly Music” and “News, Talk and Sports.” The
first of the new packages will be available in the early Fall.

“One
of the most exciting benefits of this transaction is the ability to
offer subscribers the option of expanding their subscriptions to
include the Best of Both services. Given the respective popularity of
exclusive programming on both SIRIUS and XM, we expect many subscribers
will upgrade their current subscription,” said Karmazin.

“The
upside potential for both consumers and shareholders is huge. Consumers
have the ease of adding premier programming without purchasing a new
device. For shareholders, this kind of organic growth is a key part of
the company’s future and the success we expect to see,” said Karmazin.

As
promised when the merger was first announced, existing radios will
continue to work and every subscriber has the option of maintaining
their current service package.

Benefits for Shareholders Begin Immediately, Integration Already Under Way

SIRIUS XM Radio expects to
begin realizing the synergies expected from this transaction immediately.

“In
addition to realizing significant potential revenue growth, the
management team will move quickly to capitalize on the synergies that
many analysts have predicted for this combination. We expect to begin
achieving those synergies without sacrificing any of the world-class
programming and marketing we are known for,” said Karmazin.

The
company today also reiterated guidance for the combined SIRIUS XM
Radio. Based upon a preliminary analysis, the combined company expects
to realize total synergies, net of the costs to achieve such synergies,
of approximately $400 million in 2009; to post adjusted EBITDA
exceeding $300 million in 2009; and to achieve positive free cash flow,
before satellite capital expenditures, for the full year 2009. The
company also expects that both synergies and adjusted EBITDA will
continue growing beyond 2009.

“We have all the
tools necessary to begin executing as a combined company with high
aspirations for subscriber growth and greater financial performance in
part from the significant synergies that we begin realizing literally
today — on Day One. We are moving quickly to integrate the
operations,” said Karmazin.

The corporate headquarters will be
located in New York, NY and XM Satellite Radio, the company’s
wholly-owned subsidiary, will remain headquartered in Washington, DC.

Effective after the close of the market yesterday, trading in XMSR common stock on the Nasdaq Global Select Market ceased.

This is all great news but I would like to hear from Mel about the stock that is down to $1.70 as we speak.

Shares to facilitate hedging for XM Exchangeable Note Offering
Shares will not be considered outstanding for accounting purposes

SIRIUS Satellite Radio Inc. announced today the
commencement of an offering of shares of its common stock. The common
stock being offered represent shares of SIRIUS common stock that SIRIUS
will be lending to affiliates of Morgan Stanley & Co. Incorporated
and UBS Investment Bank, the share borrowers, pursuant to share lending
agreements between SIRIUS and each of the share borrowers. It is
estimated that, based on current market values, approximately
$375,000,000 of SIRIUS common stock will be sold in a fixed-price
public offering described below, and up to approximately $65,000,000 of
SIRIUS common stock will be sold as described below from time to time
at prevailing market or negotiated prices. The exact number of shares
of SIRIUS common stock to be offered will depend on the terms of the
concurrent offering of exchangeable senior subordinated notes described
below and the hedging to be conducted by investors in such notes. While
the borrowed shares will be considered issued and outstanding for
corporate law purposes, SIRIUS believes that under U.S. generally
accepted accounting principles currently in effect, the borrowed shares
will not be considered outstanding for the purpose of computing and
reporting earnings (loss) per share because the borrowed shares are
required to be returned to SIRIUS.

The
common stock offering is being conducted concurrently with a private
offering by XM Satellite Radio Inc. of $550 million aggregate principal
amount of Exchangeable Senior Subordinated Notes due 2014 (”Notes”)
which will be exchangeable into shares of SIRIUS common stock. The
terms of the Notes, including the interest rate and exchange ratio,
will be determined at the time that such offering is priced. The Notes
have not been registered under the Securities Act or any state
securities laws and may not be offered or sold in the United States or
to U.S. person absent registration or an applicable exemption from the
registration requirements of applicable securities laws.

In
connection with the common stock offering, SIRIUS will enter into a
share lending agreement with each of the share borrowers, pursuant to
which SIRIUS will lend shares to the share borrowers. The share
borrowers will sell a portion of the borrowed shares in a fixed-price
public offering expected to close concurrently with the Notes offering.
After the closing of the fixed- price offering, the share borrowers
will offer and sell the remaining borrowed shares in one or more
registered public offerings at prevailing market or negotiated prices.
Over the same period that the share borrowers sell the remaining
borrowed shares, the share borrowers or their affiliates expect to
purchase at least an equal number of shares of SIRIUS common stock on
the open market and/or enter into derivative transactions providing it
with a synthetic long position equal to such number of shares. SIRIUS
will not receive any proceeds from the sale of its common stock by the
share borrowers other than a nominal loan fee equal to $0.001 per share
issued to the share borrowers. The share borrowers will be required to
return the borrowed shares pursuant to the share lending agreements
following the maturity date of the Notes or their earlier retirement.

Morgan
Stanley & Co. Incorporated and UBS Investment Bank will act as sole
underwriters for the sale of the borrowed shares. A prospectus can be
obtained by contacting Morgan Stanley & Co. Incorporated, 180
Varick Street, New York, NY 10014; Attention: Prospectus Department or
by email at prospectus@morganstanley.com or by contacting UBS
Investment Bank, Attention: Prospectus Department, 299 Park Avenue, New
York, NY 10171, (888) 827-7275.

This press release shall not
constitute an offer to sell or a solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.

– Revenue of $283 Million, Up 25% Year Over Year
– Total Subscribers of More Than 8.9 Million, Up 25% Year Over Year
– Adjusted Loss from Operations Improves 70% Year Over Year

SIRIUS Satellite Radio today announced preliminary
second quarter 2008 financial results, including a 25% increase in
revenue to $283 million, total subscribers in excess of 8.9 million and
a 70% decrease in its adjusted loss from operations.

As of June 30, 2008, SIRIUS had 8.924 million subscribers, an
increase of 25% from June 30, 2007 subscribers of 7.143 million. Retail
subscribers increased 7% in the second quarter 2008 to 4.677 million
from 4.365 million in the second quarter 2007. OEM subscribers
increased 53% in the second quarter 2008 to 4.247 million from 2.778
million in the second quarter 2007. Total gross subscriber additions
for the quarter ended June 30, 2008 were 1.029 million, compared to
1.002 million for the quarter ended June 30, 2007 and 1.003 million for
the quarter ended March 31, 2008. During the second quarter 2008 SIRIUS
added 279,820 new net subscribers, consisting of 246,221 from the OEM
channel and 33,599 from the retail channel.

Second
quarter 2008 average monthly self-pay customer churn rate was 1.6%,
down from 2.1% in first quarter 2008. The second quarter 2008
conversion rate is estimated to be approximately 48%, up from the first
quarter 2008 conversion rate of approximately 47%.

Total
revenue for the second quarter 2008 is expected to be approximately
$283 million, an increase of 25% from the second quarter 2007 total
revenue of $226 million. Operating expenses, excluding depreciation and
stock based compensation, are expected to remain approximately flat in
the second quarter 2008 as compared to the second quarter 2007. Second
quarter 2008 adjusted loss from operations is expected to be
approximately $24 million, an improvement of 70% from the adjusted loss
from operations of $79 million in the second quarter 2007.

There are reports that Kevin Martin (The FCC’s Chairman) will be taking a trip to Asia mid-June.

They are saying this will not affect any decisions made by the FCC during the time he is gone…but do you really believe that or anything the FCC has to say?

I guess we will not be hearing about the merger until July now. By then I’m sure something else will pop up and it will be delayed another month!

Don’t you just love the FCC?

Here is a link to the source:
http://www.thedeal.com/dealscape/2008/06/will_martins_itinerary_delay_x.php

The U.S. Federal Communications will act soon on Sirius Satellite
Radio’s proposed purchase of rival XM Satellite Radio, the chairman of
the FCC said on Thursday.

In an interview on CNBC television, FCC Chairman Kevin Martin said
the XM-Sirius deal raised difficult regulatory issues. But he noted the
companies had agreed to concessions and said the agency “will hopefully
be able to do something on it soon.”

The merger would bring entertainers such as Oprah Winfrey and shock
jock Howard Stern under the same banner. It has been criticized as
anti-competitive by the traditional radio industry, and by some U.S.
lawmakers.

Antitrust authorities at the Justice Department approved the
combination in March after concluding it would not harm consumers. The
department said satellite radio companies face stiff competition from
traditional AM/FM radio, high-definition radio, MP3 players and audio
delivered by mobile phones.

Read the rest here.

Video Here.

I’m sure soon means 3-4 months to the FCC. It would be nice to hear the news by the end of the month.

‘Radio R.E.M.’ will premiere in conjunction with band’s new studio album ‘Accelerate’
SIRIUS
channel will play music from R.E.M.’s three-decade career, exclusive
interviews with band members, and songs hand selected by R.E.M.’s
Michael Stipe, Peter Buck and Mike Mills

SIRIUS Satellite Radio announced today that R.E.M.
(Warner Bros. Records) will take over its Spectrum channel for an
entire week. Radio R.E.M. will launch in conjunction with the release
of the band’s 14th studio album Accelerate and feature music from
band’s expansive repertoire. The channel will premiere on Monday, March
31 at 7 am ET.

Radio R.E.M., hosted exclusively by band members Michael Stipe,
Peter Buck and Mike Mills, will include insights from the band on the
inspiration for each song on Accelerate, as well as conversations with
R.E.M. covering a variety of topics ranging from the state of the band
to their personal world views.

During the take over, listeners will hear songs from R.E.M.’s nearly
three-decade career as well as hand selected music from some of their favorite
artists.

Radio R.E.M. continues SIRIUS’ tradition of creating exclusive
limited run artist branded channels dedicated to iconic figures at the
top of their game. Recent limited run exclusive channels launched on
SIRIUS include Rolling Stones Radio, E Street Radio, JAY-Z Nation,
Duran Duran’s Red Carpet Radio and Garth Brooks Radio, among many
others.

To learn more about Radio R.E.M. please visit www.sirius.com or www.sirius.com/thespectrum.

Technorati Tags: radio R.E.M., Sirius Satellite Radio

All Infiniti Models to offer Factory-Equipped XM Radio and XM NavTraffic

XM, the nation’s leading provider of satellite radio,
announced that its award-winning real-time XM NavTraffic service will
be available on the all-new 2009 Infiniti FX. For the 2009 model year,
the entire lineup of Infiniti vehicles will feature standard XM Radio
and, when equipped with a navigation system, XM NavTraffic.

XM NavTraffic, powered by NAVTEQ Traffic, is the nation’s leading
real- time traffic service that offers the most comprehensive
information and coast- to-coast updates every minute, ensuring that the
driver has the latest and most detailed information at his or her
fingertips. XM NavTraffic is now available in 80 major North American
markets.

In addition to the 2009 Infiniti FX, XM NavTraffic is also offered
as a standard feature on the Infiniti M, EX, G, G Coupe, M and QX
models when equipped with a Navigation System.

Infiniti has selected XM as its exclusive factory-installed
satellite radio provider, and every Infiniti model now makes XM Radio
available as a standard, factory-equipped feature.

“Beginning with the 2009 model year, Infiniti is delivering on its
commitment to offering the best in entertainment and technology in
every vehicle,” said Joe Verbrugge, senior vice president, automotive
partnerships and international operations, XM Satellite Radio.
“Infiniti buyers can now immediately begin to experience the variety of
XM’s more than 170 channels of music, sports, news, talk and
entertainment, along with the power of live, real time traffic data.”

XM NavTraffic feeds data on incidents, such as accidents and road
construction, directly to a vehicle’s GPS navigation system via XM’s
satellite and ground network. The driver is alerted to these incidents
through the navigation screen, allowing him or her to route around a
jam before getting caught in traffic. Where available, XM NavTraffic
provides real-time traffic information by using red, yellow and green
color codes to indicate high, medium and low congestion levels.

All XM-equipped models come with a three-month complimentary subscription

For more information on XM NavTraffic, visit: http://www.xmradio.com/navtraffic/

Technorati Tags: nissan infinity, xm navtraffic, satellite radio

The Catholic Channel to provide 24-hour coverage of the first U.S.
visit of His Holiness Pope Benedict XVI, with exclusive live shows
hosted by Cardinal Egan and others
SIRIUS will devote multiple channels to the Papal Visit, presenting
live event coverage and broadcasts, plus historic recordings

SIRIUS Satellite Radio announced today that it will
offer listeners nationwide unprecedented access when His Holiness Pope
Benedict XVI embarks on his first pastoral visit to the United States
from April 15-20, 2008.

SIRIUS’ The Catholic Channel (channel 159) will be the flagship for
coverage of the first visit to the U.S. by a Pope since 1999, providing
hourly updates with the latest news and information on the Pope’s
activities during his visit, live coverage of all the major events, and
more. SIRIUS, in addition to The Catholic Channel coverage, will
dedicate multiple channels to the Pope’s visit, to provide listeners
with simultaneous access to Papal events, commentary, and rare archival
recordings of Masses and speeches from historic Papal visits — which
will include, among others, Pope John Paul II’s 1995 address to the
United Nations General Assembly.

For information, log on to www.sirius.com/thecatholicchannel.

Technorati Tags: sirius, satellite radio, pope, 2008 papal visit

XM Satellite
Radio and SIRIUS Satellite Radio today announced
that the companies have agreed not to exercise their rights to terminate the
Merger Agreement until May 1, 2008.

The closing of the pending merger remains subject to satisfaction of all
applicable conditions, including approval from the Department of Justice and
the Federal Communications Commission.

Via http://biz.yahoo.com/prnews/080229/nyf044.html?.v=101

XM Satellite Radio has scheduled a conference call for Thursday, February 28, 2008, at 10:00 a.m. ET to announce and discuss its fourth quarter and full year 2007 financial results. Prior to the call, XM Radio’s fourth quarter and full year 2007 results will be posted to the Company’s Web site at http://www.xmradio.com/ and released to PR Newswire and First Call.

To listen to the conference call via telephone, please dial one of the following numbers approximately 10 minutes prior to the planned start of the call.

Call-in number: (877) 265-5808
Local call-in number: (706) 679-7931
Conference ID#: 35479749

The conference call can also be accessed through a live webcast on the Company’s Web site at http://www.xmradio.com/ (click on “Investor Info” link at the bottom of the page). The webcast of the call will also be archived on the Company’s Web site.

If you are unable to participate in the scheduled call, a replay of the conference call will be available after 11:30 a.m. ET on Thursday, February 28, 2008 until May 28, 2008.

Playback Numbers: (800) 642-1687
Local playback number: (706) 645-9291
Conference ID#: 35479749

Technorati Tags: xm radio, satellite radio, 4q finincial results