2007 Revenue Increases 45% to $922 Million
Highest Annual Gross Subscriber Additions in Satellite Radio History
Full-Year Self-Pay Monthly Churn of 1.6%

Achieves Positive Free Cash Flow for Fourth Quarter and Second Half 2007

SIRIUS Satellite Radio today announced full year and
fourth quarter 2007 financial results driven by the highest annual
gross subscriber additions in satellite radio history. The company also
reported positive free cash flow for the fourth quarter and for the
second half of 2007.

“In 2007, SIRIUS achieved our financial goals and solidified our
position as one of the fastest growing media companies in the world,”
said Mel Karmazin, CEO of SIRIUS. “Revenue grew 45% to $922.1 million
driven by 4.2 million gross subscriber additions – an annual record for
satellite radio. More importantly, SIRIUS demonstrated positive
operating leverage in the business through solid cost control by
limiting growth in total expenses, excluding non-cash items, to under
9% for the year. SIRIUS achieved positive free cash flow for the second
half of the year and $75.9 million in positive free cash flow for the
fourth quarter 2007.”

“The pending merger with XM will offer unprecedented choice for
consumers and create tremendous value for stockholders. We have made a
very strong case for the merger to the government, received broad
support from leading organizations and prominent individuals, and we
look forward to a fast positive ruling from the government.”

SIRIUS ended 2007 with 8,321,785 subscribers, up 38% from 6,024,555
subscribers at the end of 2006. Retail subscribers increased 15% in
2007 to 4,640,709 from 4,041,826 at the end of 2006. OEM subscribers
increased 87% in 2007 to 3,665,632 from 1,959,009 at the end of 2006.
During the fourth quarter 2007, SIRIUS added 654,309 net subscribers
and, according to the NPD Group, SIRIUS achieved a 68% share of
aftermarket satellite radio sales, its highest ever share.

Total revenue for 2007 increased to $922.1 million, up 45% from 2006
total revenue of $637.2 million. Fourth quarter 2007 total revenue
increased 29% to $249.8 million from fourth quarter 2006 revenue of
$193.4 million. Average monthly revenue per subscriber (or “ARPU”) was
$10.46 in 2007 and $10.05 for the fourth quarter 2007. Average self-pay
monthly churn was 1.6% in 2007 and all-in average monthly churn for
2007 was 2.2%. For the fourth quarter 2007 average self-pay monthly
churn was 1.7% and all-in churn was 2.3%. SAC per gross subscriber
addition was $101 for 2007 improving 11% over 2006′s SAC per gross
subscriber addition of $114. In the fourth quarter 2007, SAC per gross
subscriber addition was $90.

SIRIUS reported a net loss of ($565.3) million, or ($0.39) per share,
for 2007, an improvement of 49% over the 2006 net loss of ($1.1)
billion, or ($0.79) per share. For the fourth quarter 2007 the net loss
was ($166.2) million, or ($0.11) per share, as compared with the fourth
quarter 2006 net loss of ($245.6) million, or ($0.17) per share.

The adjusted loss from operations for 2007 improved to ($327.4)
million, as compared to the adjusted loss from operations of ($513.1)
million in 2006. For the fourth quarter 2007, the adjusted loss from
operations was ($107.2) million, an improvement of 36% as compared with
the ($166.8) million adjusted loss from operations in the fourth
quarter 2006.

SIRIUS reported a full-year 2007 free cash flow loss of ($218.6), a 56%
improvement over the 2006 free cash flow loss of ($500.7) million. The
company posted positive free cash flow in the fourth quarter of 2007 of
$75.9 million, up 150% from the $30.4 million in positive free cash
flow reported in the fourth quarter of 2006. For the first time in the
company’s history, SIRIUS also posted positive free cash flow of $8.1
million for the second half of the year.

2008 OUTLOOK

Following approval of the pending merger by the government, SIRIUS will provide guidance for 2008.

2007 HIGHLIGHTS

SIRIUS extended its exclusive relationship with Ford until 2016. The
agreement covers all Ford brands. In addition, the Ford and Mercury
brands are targeting approximately 70% factory penetration of SIRIUS
radios beginning with the 2009 model year vehicles.

In February 2008, SIRIUS also extended its exclusive agreement with
Chrysler LLC until 2017. This agreement covers all Chrysler LLC brands.
Chrysler included SIRIUS radios as a factory- installed feature in more
than 70% of its 2008 model year vehicles.

The company also recently launched the critically acclaimed, SIRIUS
Travel Link service, at the LA and Detroit auto shows. SIRIUS Travel
Link is expected to be offered in 2008 on select Ford, Lincoln and
Mercury brand vehicles. SIRIUS Travel Link offers real-time traffic
data with speed/flow and incident information, national weather
information, fuel prices, sports scores and movie listings.

SIRIUS also launched SIRIUS Backseat TV in select 2008 model year
Chrysler and Dodge vehicles. It is the first ever live in-vehicle rear
seat entertainment featuring three channels of children’s programming.

In 2007, SIRIUS also introduced the Stiletto 2, the company’s second
satellite radio to provide live reception in portable mode. The
Stiletto 2 allows users to capture, store and replay live SIRIUS
content and MP3/WMA files.

SPORTS, MUSIC, TALK AND ENTERTAINMENT LEADER

2007 was an unprecedented year for new and exclusive programming from
SIRIUS including: the first full year of NASCAR coverage, the launch of
the Grateful Dead channel, Siriusly Sinatra, E Street Radio with Bruce
Springsteen, African-American political commentator Mark Thompson,
Barbara Walters new exclusive radio show (her first call-in show ever),
and The Foxxhole presented by Jamie Foxx. SIRIUS also announced the
upcoming launch of “Doctor Radio” Powered by NYU Medical Center, an
exclusive, pioneering, 24/7 radio channel featuring easily accessible
information on health, wellness, and medical issues, brought to you by
world-class doctors.

SIRIUS reaffirmed its position as the leading provider of sports radio
programming, broadcasting play-by-play action from more than 350
professional and college teams. SIRIUS is the only company to air every
NFL game, every NASCAR race and every NBA game. For Super Bowl XLII,
SIRIUS offered expanded coverage carrying twelve live broadcasts of the
game in eight different languages. SIRIUS also airs European soccer,
college sports, the Wimbledon Championships, every game of the NCAA^? Division I Men’s Basketball Championship, Arena Football League, World Cup skiing, National Lacrosse League and horse racing.

In 2007, SIRIUS became the Official Satellite Radio Partner of NASCAR
and introduced unprecedented coverage of the sport that includes live
broadcasts of every NASCAR race, additional Driver2Crew Chatter^? channels that carry

in-car audio of NASCAR’s top drivers, and SIRIUS NASCAR Radio, channel
128, the only 24-hour radio channel dedicated entirely to NASCAR.

SIRIUS launched a new all-sports channel, SIRIUS Sports Central,
channel 123, which features exclusive talk programs as well as Sporting
News Radio programming. SIRIUS also collaborated with ESPN on a new,
enhanced ESPN- dedicated channel showcasing an exclusive ESPN The
Magazine talk show, and for the first time on national radio, exclusive
simulcasts of some of ESPN’s television shows, including SportsCenter.

RESULTS OF OPERATIONS

The discussion of operating expenses below excludes the effects of
stock- based compensation. SIRIUS believes this presentation improves
the transparency of disclosure and is consistent with the way operating
results are evaluated by management.

FOURTH QUARTER 2007 VERSUS FOURTH QUARTER 2006

For the fourth quarter of 2007, SIRIUS recognized total revenue of
$249.8 million compared to $193.4 million for the fourth quarter of
2006. This 29.2%, or $56.4 million, increase in revenue was driven by a
$60.4 million increase in subscriber revenue resulting from the net
increase in subscribers of 2,297,230 from the fourth quarter of 2006.

The company’s adjusted loss from operations decreased $59.6 million to
($107.2) million for the fourth quarter of 2007 from ($166.8) million
for the fourth quarter of 2006 (refer to the reconciliation table of
net loss to adjusted loss from operations). This decrease was driven by
the increase in total revenue of $56.4 million and a $3.2 million
decrease in expenses.

Satellite and transmission expenses decreased $2.4 million to $4.8
million for the fourth quarter of 2007 compared to $7.2 million for the
fourth quarter of 2006 as a result of sales of certain satellite parts
and lower maintenance and utility expenses in the fourth of quarter
2007.

Programming and content expenses increased $4.2 million to $60.0
million for the fourth quarter of 2007 from $55.8 million for the
fourth quarter of 2006. The increase was primarily attributable to
license fees associated with new programming agreements including
NASCAR and compensation-related costs.

Revenue share and royalties increased $35.7 million, or 169.2%, to
$56.8 million for the fourth quarter of 2007 from $21.1 million for the
fourth quarter of 2006. This increase was primarily attributable to the
determination of the royalty rate in December 2007 under the statutory
license covering the performance of sound recordings. The 2007 royalty
rate of 6% of gross revenue resulted in royalty expense of
approximately $48.1 million, of which approximately $25.9 million was
recorded in the fourth quarter. The growth in the company’s revenues
and increase in the company’s OEM subscriber base also contributed to
the increase in revenue share and royalties.

Customer service and billing expenses increased $3.4 million to $29.1
million for the fourth quarter of 2007 from $25.7 million for the
fourth quarter of 2006. The increase was primarily attributable to
higher call center operating costs necessary to accommodate the
increase in the company’s subscriber base. Customer service and billing
expenses per average subscriber per month declined 23.1% to $1.23 for
the fourth quarter of 2007 from $1.60 for the fourth quarter of 2006.

Sales and marketing expenses decreased $20.0 million to $53.1 million
for the fourth quarter of 2007 from $73.1 million for the fourth
quarter of 2006. This decrease was primarily attributable to lower
consumer marketing and advertising and reduced cooperative marketing
spend with the company’s distributors compared to the year-ago fourth
quarter.

Subscriber acquisition costs (SAC) decreased $21.1 million, or 17.4%,
to $99.9 million for the fourth quarter of 2007 from $121.0 million for
the fourth quarter of 2006. This decrease was primarily attributable to
lower chipset subsidies and commissions and a higher mix of OEM gross
additions.

SAC per gross subscriber addition decreased 12.6% to $90 for the fourth
quarter of 2007 from $103 for the fourth quarter of 2006 driven by
lower product costs, offset by a higher mix of OEM gross additions.

General and administrative expenses increased $5.6 million to $27.0
million for the fourth quarter of 2007 from $21.4 million for the
fourth

quarter of 2006. The increase was primarily the result of higher legal fees and compensation-related costs.

Engineering, design and development expenses decreased $5.5 million to
$7.3 million for the fourth quarter of 2007 from $12.8 million for the
fourth quarter of 2006. This decrease was primarily attributable to
reduced OEM tooling and manufacturing upgrades associated with the
factory installation of SIRIUS radios in additional vehicle models.

SIRIUS reported a net loss of ($166.2) million, or ($0.11) per share,
for the fourth quarter of 2007 compared to a net loss of ($245.6)
million, or ($0.17) per share, for the fourth quarter of 2006. The
adjusted net loss per share, or net loss per share excluding
stock-based compensation, was ($0.10) per share for the fourth quarter
of 2007 as compared to an adjusted net loss per share of ($0.14) per
share for the fourth quarter of 2006 (refer to the reconciliation table
of net loss per share to adjusted net loss per share).

YEAR ENDED DECEMBER 31, 2007 VERSUS YEAR ENDED DECEMBER 31, 2006

For the year ended December 31, 2007, SIRIUS recognized total revenue
of $922.1 million compared with $637.2 million for the year ended
December 31, 2006. This 44.7%, or $284.9 million, increase in revenue
was primarily driven by a $279.5 million increase in subscriber revenue
resulting from the net increase in subscribers of 2,297,230 during
2007.

The company’s adjusted loss from operations decreased ($185.7) million
to ($327.4) million for the year ended December 31, 2007 from ($513.1)
million for the year ended December 31, 2006 (refer to the
reconciliation table of net loss to adjusted loss from operations).
This decrease was driven by a 44.7%, or $284.9 million, increase in
total revenue which more than offset the 8.6%, or $99.1 million,
increase in expenses.

Satellite and transmission expenses decreased $13.5 million to $25.7
million for the year ended December 31, 2007 from $39.2 million for the
year ended December 31, 2006 as a result of sales of certain satellite
parts and lower maintenance and utility expense in the fourth quarter
2007. In addition, the 2006 expenses include a $10.9 million
non-recurring impairment charge associated with certain satellite
long-lead time parts that were no longer needed.

Programming and content expenses increased $27.7 million to $226.4
million for the year ended December 31, 2007 from $198.7 million for
the year ended December 31, 2006. The increase was primarily
attributable to license fees associated with new programming
agreements, including NASCAR, and compensation-related costs.

Revenue share and royalties increased $76.8 million, or 109.9%, to
$146.7 million for the year ended December 31, 2007 from $69.9 million
for the year ended December 31, 2006. This increase was primarily
attributable to the determination of the royalty rate under the
statutory license covering the performance of sound recordings. The
2007 royalty rate of 6% of gross revenue resulted in royalty expense of
approximately $48.1 million, of which approximately $25.9 million was
recorded in the fourth quarter. The growth in the company’s revenues
and increase in the company’s OEM subscriber base also contributed to
the increase.

Customer service and billing expenses increased $17.4 million to $93.1
million for the year ended December 31, 2007 from $75.7 million for the
year ended December 31, 2006. The increase was primarily attributable
to higher call center operating costs and higher credit card fees
necessary to accommodate the increase in the company’s subscriber base.
Customer service and billing expenses per average subscriber per month
declined 19.7% to $1.10 for the year ended December 31, 2007 from $1.37
for the year ended December 31, 2006.

Sales and marketing expenses decreased $26.1 million to $158.0 million
for the year ended December 31, 2007 from $184.1 million for the year
ended December 31, 2006. This decrease was primarily attributable to
lower consumer marketing and advertising and reduced cooperative
marketing spend with the company’s distributors offset by higher
compensation-related costs.

Subscriber acquisition costs decreased $14.9 million to $404.8 million
for the year ended December 31, 2007 from $419.7 million for the year
ended December 31, 2006. This decrease was primarily attributable to
lower chipset

subsidies and commission costs offset by higher OEM hardware subsidies and a higher mix of OEM gross additions.

SAC per gross subscriber addition decreased 11.4% to $101 for the year
ended December 31, 2007 from $114 for the year ended December 31, 2006.
The improvement was driven by lower product costs offset by a higher
mix of OEM gross additions.

General and administrative expenses increased $31.5 million to $111.5
million for the year ended December 31, 2007 from $80.0 million for the
year ended December 31, 2006. The increase was primarily a result of
higher legal fees and compensation-related costs.

Engineering, design and development expenses decreased $20.9 million to
$37.8 million for the year ended December 31, 2007 from $58.7 million
for the year ended December 31, 2006. This decrease was primarily
attributable to reduced OEM tooling and manufacturing upgrades
associated with the factory installation of SIRIUS radios in additional
vehicle models offset by higher compensation-related costs.

SIRIUS reported a net loss of ($565.3) million, or ($0.39) per share,
for the year ended December 31, 2007, including a ($0.05) per share
impact from stock-based compensation, compared with a net loss of
($1.1) billion, or ($0.79) per share, for the year ended December 31,
2006, including a ($0.01) per share impact from the impairment loss and
($0.31) per share impact from stock-based compensation. The adjusted
net loss per share, or net loss per share excluding stock-based
compensation, was ($0.34) for the year ended December 31, 2007 compared
with an adjusted net loss per share excluding the impairment loss and
stock based compensation of ($0.47) for the year ended December 31,
2006 (refer to the reconciliation table of net loss per share to
adjusted net loss per share).

                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                           SUBSCRIBER DATA, METRICS                    AND OTHER NON-GAAP FINANCIAL MEASURES               (Dollars in thousands, unless otherwise stated)                                 (Unaudited)    Subscribers Data:                               For the Three Months       For the Years                                Ended December 31,      Ended December 31,                                2007        2006        2007          2006

Beginning subscribers    7,667,476   5,119,308   6,024,555     3,316,560    Net additions              654,309     905,247   2,297,230     2,707,995      Ending subscribers     8,321,785   6,024,555   8,321,785     6,024,555

Retail                 4,640,709   4,041,826   4,640,709     4,041,826      OEM                    3,665,632   1,959,009   3,665,632     1,959,009      Hertz                     15,444      23,720      15,444        23,720    Ending subscribers       8,321,785   6,024,555   8,321,785     6,024,555

Additions      Retail                   211,962     559,312     598,883     1,576,463      OEM                      444,244     348,935   1,706,623     1,135,316      Hertz                     (1,897)     (3,000)     (8,276)       (3,784)    Net additions              654,309     905,247   2,297,230     2,707,995

Metrics:                               For the Three Months        For the Years                                Ended December 31,      Ended December 31,                                2007        2006        2007          2006    Gross subscriber     additions               1,194,014   1,234,576   4,183,901     3,758,163    Deactivated subscribers    539,705     329,329   1,886,671     1,050,168    Average monthly churn     (1)(6)                        2.3%        2.0%        2.2%          1.9%    SAC per gross subscriber     addition (3)(6)               $90        $103        $101          $114    Customer service and     billing expenses per     average subscriber     (3)(6)                      $1.23       $1.60       $1.10         $1.37    Total revenue             $249,816    $193,380    $922,066      $637,235    Free cash flow (4)(6)      $75,921     $30,409   $(218,624)    $(500,715)

Monthly ARPU:      Average monthly       subscriber revenue per       subscriber before       the effects of Hertz       subscribers and       rebates                  $10.19      $10.48      $10.24        $10.63      Effects of Hertz       subscribers                0.04        0.05        0.05          0.05      Effects of rebates         (0.59)      (0.14)      (0.23)        (0.23)      Average monthly       subscriber revenue per       subscriber                 9.64       10.39       10.06         10.45      Average monthly net       advertising revenue       per subscriber             0.41        0.53        0.40          0.56      ARPU                      $10.05      $10.92      $10.46        $11.01

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                           SUBSCRIBER DATA, METRICS              AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED               (Dollars in thousands, unless otherwise stated)                                 (Unaudited)

Adjusted Loss from Operations:

For the Three Months       For the Years                                Ended December 31,      Ended December 31,                                 2007       2006         2007        2006

Net loss                 $(166,223)  $(245,597)  $(565,252)  $(1,104,867)      Impairment loss                -           -           -        10,917      Depreciation              27,638      27,495     106,780       105,749      Stock-based       compensation             14,896      42,625      78,900       437,918      Other income and       expense                  15,699       8,512      49,727        35,078      Income tax expense           770         156       2,435         2,065      Adjusted loss from       operations (7)        $(107,220)  $(166,809)  $(327,410)    $(513,140)

Adjusted Net Loss and     Adjusted Net Loss per Share:

For the Three Months       For the Years                                Ended December 31,      Ended December 31,                                 2007        2006       2007          2006

Net loss                 $(166,223)  $(245,597)  $(565,252)  $(1,104,867)      Impairment loss                -           -           -        10,917      Stock-based       compensation             14,896      42,625      78,900       437,918    Adjusted net loss        $(151,327)  $(202,972)  $(486,352)    $(656,032)    Net loss per share     (basic and diluted)        $(0.11)     $(0.17)     $(0.39)       $(0.79)      Impairment loss                -           -           -          0.01      Stock-based       compensation               0.01        0.03        0.05          0.31    Adjusted net loss per     share (basic and     diluted) (8)               $(0.10)     $(0.14)     $(0.34)       $(0.47)    Weighted average common     shares outstanding     (basic and diluted)     1,468,210   1,413,866   1,462,967     1,402,619

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                           SUBSCRIBER DATA, METRICS              AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED               (Dollars in thousands, unless otherwise stated)

Condensed Consolidated Statements of Operations:                               For the Three Months       For the Years                                Ended December 31,      Ended December 31,                                 2007        2006       2007          2006

Total revenue             $249,816    $193,380    $922,066      $637,235    Operating expenses     (excludes depreciation     and stock-based     compensation shown     separately below):       Satellite and        transmission             4,811       7,152      25,709        39,229       Programming and        content                 59,949      55,779     226,416       198,650       Revenue share and        royalties               56,762      21,062     146,715        69,918       Customer service and        billing                 29,123      25,745      93,109        75,650       Cost of equipment        19,070      22,105      45,458        35,233       Sales and marketing      53,143      73,115     157,965       184,139       Subscriber        acquisition costs       99,906     121,046     404,799       419,716       General and        administrative          26,951      21,398     111,546        80,025       Engineering, design        and development          7,321      12,787      37,759        58,732       Depreciation             27,638      27,495     106,780       105,749       Stock-based        compensation            14,896      42,625      78,900       437,918    Total operating     expenses                  399,570     430,309   1,435,156     1,704,959    Loss from operations      (149,754)   (236,929)   (513,090)   (1,067,724)       Other expense           (15,699)     (8,512)    (49,727)      (35,078)    Loss before income taxes  (165,453)   (245,441)   (562,817)   (1,102,802)       Income tax expense         (770)       (156)     (2,435)       (2,065)    Net loss                 $(166,223)  $(245,597)  $(565,252)  $(1,104,867)

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                    CONSOLIDATED STATEMENTS OF OPERATIONS               (Dollars in thousands, except per share amounts)                                 (Unaudited)

For the Three Months       For the Years                                Ended December 31,      Ended December 31,                                2007        2006        2007          2006    Revenue:      Subscriber revenue,       including effects of       rebates                $227,658    $167,210    $854,933      $575,404      Advertising revenue,       net of agency fees        9,770       8,451      34,192        31,044      Equipment revenue, net       of discounts and       rebates                  12,065      16,431      29,281        26,798      Other revenue                323       1,288       3,660         3,989    Total revenue              249,816     193,380     922,066       637,235    Operating expenses     (excludes depreciation     shown separately     below) (1):      Cost of services:        Satellite and         transmission            5,175       7,518      27,907        41,797        Programming and         content                62,735      80,414     236,059       520,424        Revenue share and         royalties              56,762      21,062     146,715        69,918        Customer service and         billing                29,288      25,912      93,817        76,462        Cost of equipment       19,070      22,105      45,458        35,233      Sales and marketing       53,682      77,780     173,572       203,682      Subscriber acquisition       costs                   100,062    122,196      407,642       451,614      General and       administrative           37,212      32,379     155,863       129,953      Engineering, design and       development               7,946      13,448      41,343        70,127      Depreciation              27,638      27,495     106,780       105,749    Total operating expenses   399,570     430,309   1,435,156     1,704,959      Loss from operations    (149,754)   (236,929)   (513,090)   (1,067,724)    Other income (expense):      Interest and investment       income                    4,171       6,760      20,570        33,320      Interest expense, net of       amounts capitalized     (19,887)    (15,327)    (70,328)      (64,032)      Loss from redemption of       debt                          -           -           -             -      Equity in net loss of       affiliate                     -           -           -        (4,445)      Other income                  17          55          31            79    Total other income     (expense)                 (15,699)     (8,512)    (49,727)      (35,078)      Loss before income       taxes                   (165,453)  (245,441)   (562,817)   (1,102,802)      Income tax expense          (770)       (156)     (2,435)       (2,065)        Net loss             $(166,223)  $(245,597)  $(565,252)  $(1,104,867)    Net loss per share (basic     and diluted)               $(0.11)     $(0.17)     $(0.39)       $(0.79)    Weighted average common     shares outstanding     (basic and diluted)     1,468,210   1,413,866   1,462,967     1,402,619

(1) Amounts related to     stock-based compensation     included in other     operating expenses were as     follows:    Satellite and transmission    $364        $366      $2,198        $2,568    Programming and content      2,786      24,635       9,643       321,774    Customer service and     billing                       165         167         708           812    Sales and marketing            539       4,665      15,607        19,543    Subscriber acquisition costs   156       1,150       2,843        31,898    General and administrative  10,261      10,981      44,317        49,928    Engineering, design and     development                   625         661       3,584        11,395    Total equity granted to     third parties and     employees                 $14,896     $42,625     $78,900      $437,918

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                              BALANCE SHEET DATA                            (Dollars in thousands)

As of                                                December 31,     December 31,                                                    2007              2006

Cash, cash equivalents and     marketable securities                        $439,289          $408,921    Restricted investments                          53,000            77,850    Working capital                               (394,989)         (257,799)    Total assets                                 1,694,149         1,658,528    Long-term debt                               1,278,617         1,068,249    Total liabilities                            2,486,886         2,047,599    Accumulated deficit                         (4,398,972)       (3,833,720)    Stockholders' deficit                         (792,737)         (389,071)

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES                      CONSOLIDATED STATEMENTS OF CASH FLOWS                              (Dollars in thousands)                                   (Unaudited)

For the Three Months    For the Years                                    Ended December 31,   Ended December 31,                                     2007       2006      2007        2006    Cash flows from operating     activities:       Net loss                   $(166,223) (245,597) $(565,252) $(1,104,867)       Adjustments to reconcile        net loss to net cash used        in operating activities:         Depreciation                27,638    27,495    106,780      105,749         Non-cash interest          expense                     1,817       775      4,269        3,107         Provision for doubtful          accounts                    2,339     1,826      9,002        9,370         Non-cash equity in net          loss of affiliate               -         -          -        4,445         Gain/(Loss) on disposal          of assets                    (520)      772       (428)       1,661         Impairment loss                  -         -          -       10,917         Stock-based compensation    14,896    42,625     78,900      437,918         Deferred income taxes          770       156      2,435        2,065       Changes in operating        assets and liabilities:         Accounts receivable        (22,254)   (8,724)   (28,881)      (1,871)         Inventory                    7,498    10,477      4,965      (20,246)         Receivables from          distributors               (4,147)  (28,146)   (13,179)     (20,312)         Prepaid expenses and          other current assets       (3,112)       31     11,459      (42,367)         Other long-term assets        (205)    2,343     12,109      (19,331)         Accounts payable and          accrued expenses          129,257   102,299     66,169       26,366         Accrued interest             7,820    11,699     (8,920)       1,239         Deferred revenue            93,102   105,334    169,905      181,003         Other long-term          liabilities                 1,142    11,503      1,901        3,452           Net cash (used in)            provided by operating            activities               89,818    34,868   (148,766)    (421,702)     Cash flows from investing      activities:       Additions to property and        equipment                    (7,377)   (5,459)   (65,264)     (92,674)       Sales of property and        equipment                       525         4        641          127       Merger related costs          (6,680)        -    (29,444)           -       Purchases of restricted        and other investments             -         -       (310)     (12,339)       Release of restricted        investments                     160     1,000     25,160       26,000       Purchases of available-        for-sale securities               -    (5,000)         -     (123,500)       Sales of available-for-        sale securities               4,189    28,375     15,031      229,715           Net cash (used in)            provided by investing            activities               (9,183)   18,920    (54,186)      27,329     Cash flows from financing      activities:       Long term borrowings, net        of related costs               (320)        -    244,879            -       Repayment of long term        borrowings                     (625)        -       (625)           -       Proceeds from exercise of        stock options                 1,420    21,757      4,097       25,787           Net cash provided by            financing activities        475    21,757    248,351       25,787     Net increase (decrease) in      cash and cash equivalents      81,110    75,545     45,399     (368,586)     Cash and cash equivalents at      the beginning of period       357,710   317,876    393,421      762,007     Cash and cash equivalents at      the end of period            $438,820  $393,421   $438,820     $393,421

FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES

This press release, including the selected financial information above, 	  includes the following non-GAAP financial measures: average monthly churn; 	  SAC per gross subscriber addition; customer service and billing expenses per 	  average subscriber; free cash flow; average monthly revenue per subscriber, 	  or ARPU; adjusted loss from operations; adjusted net loss; and adjusted net 	  loss per share. The definitions and usefulness of such non-GAAP financial 	  measures are as follows (dollars in thousands, unless otherwise stated):

(1) SIRIUS defines average monthly churn as the number of deactivated        subscribers divided by average quarterly subscribers.

(2) SIRIUS defines SAC per gross subscriber addition as subscriber        acquisition costs, excluding stock-based compensation, and margins        from the direct sale of SIRIUS radios and accessories divided by the        number of gross subscriber additions for the period. SAC per gross        subscriber addition is calculated as follows:

For the Three Months     For the Years                                    Ended December 31,    Ended December 31,                                     2007       2006       2007       2006

Subscriber acquisition costs   $100,062   $122,196   $407,642   $451,614    Less:  stock-based     compensation                      (156)    (1,150)    (2,843)   (31,898)    Add:  margin from direct     sales of SIRIUS radios and     accessories                      7,005      5,674     16,177      8,435    SAC                            $106,911   $126,720   $420,976   $428,151    Gross subscriber     additions                    1,194,014  1,234,576  4,183,901  3,758,163    SAC per gross subscriber     addition                           $90       $103       $101       $114

(3) SIRIUS defines customer service and billing expenses per average        subscriber as total customer service and billing expenses, excluding        stock-based compensation, divided by the daily weighted average number        of subscribers for the period. Customer service and billing expenses        per average subscriber is calculated as follows:

For the Three Months      For the Years                                    Ended December 31,     Ended December 31,                                     2007       2006        2007       2006

Customer service and     billing expenses               $29,288    $25,912    $93,817    $76,462    Less:  stock-based     compensation                      (165)      (167)      (708)      (812)    Customer service and     billing expenses,     as adjusted                    $29,123    $25,745    $93,109    $75,650    Daily weighted average     number of subscribers        7,878,574  5,361,322  7,082,927  4,591,693    Customer service and     billing expenses,     as adjusted, per     average subscriber               $1.23      $1.60      $1.10      $1.37

(4) SIRIUS defines free cash flow as cash flow from operating activities,        capital expenditures, merger related costs and restricted and other        investment activity. Free cash flow is calculated as follows:

For the Three Months   For the Years                                      Ended December 31,  Ended December 31,                                        2007     2006      2007       2006    Net cash used in operating     activities                      $89,818   $34,868  $(148,766) $(421,702)    Additions to property and     equipment                        (7,377)   (5,459)   (65,264)   (92,674)    Merger related costs              (6,680)        -    (29,444)         -    Restricted and other     investment activity                 160     1,000     24,850     13,661    Free cash flow                   $75,921   $30,409  $(218,624) $(500,715)

(5) SIRIUS defines ARPU as the total earned subscriber revenue and net        advertising revenue divided by the daily weighted average number of        subscribers for the period. ARPU is calculated as follows:

For the Three Months     For the Years                                    Ended December 31,    Ended December 31,                                     2007       2006       2007       2006

Subscriber revenue              $227,658  $167,210   $854,933   $575,404    Net advertising revenue            9,770     8,451     34,192     31,044    Total subscriber and net     advertising revenue            $237,428  $175,661   $889,125   $606,448    Daily weighted average     number of subscribers         7,878,574 5,361,322  7,082,927  4,591,693    ARPU                              $10.05    $10.92     $10.46     $11.01

(6) SIRIUS believes average monthly churn; SAC per gross subscriber
addition; customer service and billing expenses per average subscriber;
free cash flow; and ARPU provide meaningful information regarding
operating performance and liquidity and are used for internal
management purposes; when publicly providing the business outlook; as a
means to evaluate period-to-period comparisons; and to compare the
company’s performance to that of its competitors. SIRIUS also believes
that investors use current and projected metrics to monitor performance
of the business and make investment decisions.

SIRIUS believes the exclusion of stock-based compensation expense in
the calculations of SAC per gross subscriber addition and customer
service and billing expenses per average subscriber is useful given the
significant variation in expense that can result from changes in the
fair market value of SIRIUS common stock, the effect of which is
unrelated to the operational conditions that give rise to variations in
the components of subscriber acquisition costs and customer service and
billing expenses. Specifically, the exclusion of stock-based
compensation expense in the calculation of SAC per gross subscriber
addition is critical in being able to understand the economic impact of
the direct costs incurred to acquire a subscriber and the effect over
time as economies of scale are reached.

These non-GAAP financial measures are used in addition to and in
conjunction with results presented in accordance with GAAP. These non-
GAAP financial measures may be susceptible to varying calculations; may
not be comparable to other similarly titled measures of other
companies; and should not be considered in isolation for, or superior
to measures of financial performance prepared in accordance with GAAP.

(7) SIRIUS refers to net loss before taxes; other income (expense) -
including interest and investment income, interest expense, equity in
net loss of affiliate; depreciation; impairment charges; and stock-
based compensation expense as adjusted loss from operations. Adjusted
loss from operations is not a measure of financial performance under
GAAP. The company believes adjusted loss from operations is a useful
measure of its operating performance. The company uses adjusted loss
from operations for budgetary and planning purposes; to assess the
relative profitability and on-going performance of consolidated
operations; to compare performance from period to period; and to
compare performance to that of its competitors. The company also
believes adjusted loss from operations is useful to investors to
compare operating performance to the performance of other
communications, entertainment and media companies. The company believes
that investors use current and projected adjusted loss from operations
to estimate the current or prospective enterprise value and make
investment decisions.

Because the company funds and builds-out its satellite radio system
through the periodic raising and expenditure of large amounts of
capital, results of operations reflect significant charges for interest
and depreciation expense. The company believes adjusted loss from
operations provides useful information about the operating performance
of the business apart from the costs associated with the capital
structure and physical plant. The exclusion of interest expense and
depreciation is useful given fluctuations in interest rates and
significant variation in depreciation expense that can result from the
amount and timing of capital expenditures and potential variations in
estimated useful lives, all of which can vary widely across different
industries or among companies within the same industry. The company
believes the exclusion of taxes is appropriate for comparability
purposes as the tax positions of companies can vary because of their
differing abilities to take advantage of tax benefits and because of
the tax policies of the various jurisdictions in which they operate.
The company also believes the exclusion of stock-based compensation
expense is useful given the significant variation in expense that can
result from changes in the fair market value of the company’s common
stock. Finally, the company believes that the exclusion of equity in
net loss of affiliate (SIRIUS Canada, Inc.) is useful to assess the
performance of its core consolidated operations in the continental
United States. To compensate for the exclusion of taxes, other income
(expense), depreciation, impairment charges and stock-based
compensation expense, the company separately measures and budgets for
these items.

There are material limitations associated with the use of adjusted loss
from operations in evaluating the company compared with net loss, which
reflects overall financial performance, including the effects of taxes,
other income (expense), depreciation, impairment charges and
stock-based compensation expense. The company uses adjusted loss from
operations to supplement GAAP results to provide a more complete
understanding of the factors and trends affecting the business than
GAAP results alone. Investors that wish to compare and evaluate the
operating results after giving effect for these costs, should refer to
net loss as disclosed in the unaudited consolidated statements of
operations. Since adjusted loss from operations is a non-GAAP financial
measure, the calculation of adjusted loss from operations may be
susceptible to varying calculations; may not be comparable to other
similarly titled measures of other companies; and should not be
considered in isolation, as a substitute for, or superior to measures
of financial performance in accordance with GAAP.

(8) SIRIUS refers to adjusted net loss and adjusted net loss per share
as net loss per share excluding impairment charges and stock-based
compensation expense. Adjusted net loss and adjusted net loss per share
are not measures of financial performance under GAAP. The company
believes adjusted net loss and adjusted net loss per share are useful
to investors to compare its operating performance to the performance of
other communications, entertainment and media companies. The company
believes the exclusion of impairment charges is appropriate for
comparability purposes as the existence, amount and timing of
impairment charges can vary from period to period and can vary widely
across different industries or among companies within the same
industry. The company also believes the exclusion of stock-based
compensation expense is useful given the significant variation in
expense that can result from changes in the fair market value of the
company’s common stock.

There are material limitations associated with the use of adjusted net
loss and adjusted net loss per share in evaluating the company compared
with net loss and net loss per share, which reflects overall financial
performance, including the effects of impairment charges and
stock-based compensation expense. The company uses adjusted net loss
and adjusted net loss per share to supplement GAAP results to provide a
more complete understanding of the factors and trends affecting the
business than GAAP results alone. Investors that wish to compare and
evaluate the operating results after giving effect for these costs,
should refer to net loss and net loss per share as disclosed in the
unaudited consolidated financial statements of operations. Since
adjusted net loss and adjusted net loss per share are non-GAAP
financial measures, the calculation of adjusted net loss and adjusted
net loss per share may be susceptible to varying calculations; may not
be comparable to other similarly titled measures of other companies;
and should not be considered in isolation, as a substitute for, or
superior to measures of financial performance prepared in accordance
with GAAP.

About SIRIUS

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
broadcasts live play-by-play games of the NFL, NBA, 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 an 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 80 channels of talk,
entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV ^? is the
first ever live in-vehicle rear seat entertainment featuring three
channels of children’s programming, including Nickelodeon, Disney
Channel and Cartoon Network, for the subscription fee of $6.99 plus
applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available at
shop.sirius.com and in more than 20,000 retail locations, including
Best Buy, Circuit City, Crutchfield, Target, Wal-Mart, Sam’s Club and
RadioShack.

As of December 31, 2007, SIRIUS radios were available as a factory and
dealer-installed option in 116 vehicle models and as a dealer
only-installed option in 37 vehicle models.

SIRIUS has agreements with Aston Martin, Audi, Bentley, BMW, Chrysler,
Dodge, Ford, Jaguar, Jeep, Kia, Land Rover, Lincoln, Maybach, Mazda,
Mercedes- Benz, Mercury, MINI, Mitsubishi, Rolls-Royce, Volvo, and
Volkswagen to offer SIRIUS radios as factory or dealer-installed
equipment in their vehicles. SIRIUS has relationships with Toyota and
Scion to offer SIRIUS radios as dealer-installed equipment, and a
relationship with Subaru to offer SIRIUS radios as factory or
dealer-installed equipment. SIRIUS radios are also offered to renters
of Hertz vehicles at airport locations nationwide.

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

This communication contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements about the
benefits of the business combination transaction involving Sirius
Satellite Radio Inc. and XM Satellite Radio Holdings Inc., including
potential synergies and cost savings and the timing thereof, future
financial and operating results, the combined company’s plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified by
words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,”
“intend,” “will,” “should,” “may,” or words of similar meaning. Such
forward- looking statements are based upon the current beliefs and
expectations of SIRIUS’ and XM’s management and are inherently subject
to significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond the control of SIRIUS and XM. Actual results may differ
materially from the results anticipated in these forward-looking
statements.

The following factors, among others, could cause actual results to
differ materially from the anticipated results or other expectations
expressed in the forward-looking statement: general business and
economic conditions; the performance of financial markets and interest
rates; the ability to obtain governmental approvals of the transaction
on a timely basis; the failure to realize synergies and cost-savings
from the transaction or delay in realization thereof; the businesses of
SIRIUS and XM may not be combined successfully, or such combination may
take longer, be more difficult, time- consuming or costly to accomplish
than expected; and operating costs and business disruption following
the merger, including adverse effects on employee retention and on our
business relationships with third parties, including manufacturers of
radios, retailers, automakers and programming providers. Additional
factors that could cause SIRIUS’ and XM’s results to differ materially
from those described in the forward-looking statements can be found in
SIRIUS’ and XM’s Annual Reports on Form 10-K for the year ended
December 31, 2006, and Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2007, June 30, 2007, and September 30, 2007, which are
filed with the Securities and Exchange Commission (the “SEC”) and
available at the SEC’s Internet site (http://www.sec.gov). The
information set forth herein speaks only as of the date hereof, and
SIRIUS disclaims any intention or obligation to update any forward
looking statements as a result of developments occurring after the date
of this communication.

CONTACT INFORMATION FOR INVESTORS AND FINANCIAL MEDIA:

Paul Blalock SIRIUS 212.584.5174 pblalock@siriusradio.com

Hooper Stevens SIRIUS 212.901.6718 hstevens@siriusradio.com

SOURCE SIRIUS Satellite Radio

http://www.sirius.com/

Technorati Tags: sirius stock, sirius investors, sirius 4th quarter results 2007

SIRIUS Satellite Radio today announced that it plans to
release fourth quarter and full year 2007 financial and operating
results on February 26, 2008.

SIRIUS also plans to hold a conference call at 8:00 am ET to discuss
these results. Investors and the press can listen to the conference
call via the company’s website, www.sirius.com, and on its satellite radio service by tuning to SIRIUS channel 126.

A replay of the call will be available on the company’s website.

Technorati Tags: sirius 4q results, webcast, sirius investors