Washington D.C., October 26, 1999 -- XM Satellite Radio (NASDAQ:XMSR) announced today that it has signed an agreement with Mitsubishi Electric Automotive America, Inc., (MEAA) to design, develop, produce and market radios capable of receiving XM's new band of radio. MEAA, with its parent company Mitsubishi Electric Corporation, is the largest Japanese manufacturer of factory-installed car radios for the US market. The announcement was made by Hugh Panero, President and CEO of XM Satellite Radio.
"We are very pleased that Mitsubishi Electric Automotive America, one of the leading Japanese manufacturers of automotive electronics and audio equipment, will incorporate XM Radio into its products," said Mr. Panero. "We look forward to working with this industry leader as we build the next generation of radio."
XM will create and package up to 100 channels of digital-quality music, news, sports, talk and children's programming at its Washington, DC, broadcast facility. The service will then be uplinked to XM's powerful satellites and transmitted directly down to vehicle, home and portable radios across the country. With an XM-capable radio and a small antenna, listeners everywhere in the continental United States will be able to enjoy their favorite XM channels.
To build its new band of radio, XM is partnering with industry leaders to build its service. Alpine, Delphi Delco, Motorola, Pioneer and Sharp are among the other consumer electronic firms that will design, manufacture and market AM/FM/XM radios. General Motors has signed a long-term agreement to factory-install and market XM service in new GM vehicles. It is also expected that agreements will be signed with other leading automakers. Hughes and Alcatel are building XM's satellites, the most powerful commercial satellites available.
Mitsubishi Electric Automotive America, Inc., designs, manufactures and sells electronic components such as starters, alternators and ignition coils as well as radios and CD players to leading automotive manufacturers. The company has manufacturing facilities in Mason, OH, and Maysville, KY, and a sales office in Plymouth, MI. For more information, please visit www.meaa-mea.com.
XM Teams with Japan's Mitsubishi Electronic Automotive America
XM Satellite Radio will use direct satellite-to-receiver broadcasting technology to provide listeners in their cars and at home with crystal-clear sound seamlessly from coast to coast. The subscription service is scheduled to start during the first half of 2001 for $9.95 a month. XM will offer a broad selection of XM listening choices created by its XM Originals programming unit and by premier content providers, including USA TODAY, the BBC World Service, Black Entertainment Television, the Hispanic Broadcasting Corporation (formerly Heftel), Bloomberg News Radio, C-SPAN Radio, CNN/Financial Network, CNN/Sports Illustrated, The Weather Channel, One-On-One Sports and many others.
American Mobile Satellite Corporation (NASDAQ:SKYC) holds controlling interest in the company, whose other investors include industry leaders Clear Channel Communications Inc.; DIRECTV, Inc., a unit of Hughes Electronics Corporation; the General Motors Corporation; Liberty Media Corporation, and a private investment group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison Dearborn Partners, which together recently invested $250 million in the company. XM Satellite Radio obtained one of two satellite digital audio radio service (SDARS) licenses from the Federal Communications Commission in October 1997. First there was AM, then FM and soon. . .XM Satellite Radio. For more information, please visit XM's new website: www.xmradio.com.
Factors that could cause forward-looking statements in this document to differ materially from actual results are discussed in XM's Registration Statement on Form S-1 (No.333-83619) filed with the Securities and Exchange Commission on July 23, 1999 and declared effective on October 4, 1999.