BLACKSTONE DISTRIBUTES SHARES OF SIRIUS COMMON STOCK TO LIMITED PARTNERS
Peter G. Peterson to leave Board of Directors
NEW YORK -- June 13, 2003 -- SIRIUS (NASDAQ: SIRI), known for delivering the very best in commercial-free music and premium broadcast entertainment, today announced that affiliates of The Blackstone Group L.P. have distributed approximately 57 million shares of SIRIUS common stock to their limited partners. These shares of common stock represent approximately 5.75% of SIRIUS’ outstanding common stock and are freely tradable and covered by a registration statement.
Blackstone has advised SIRIUS that each of its more than 150 outside limited partners will make its own investment decision with respect to the SIRIUS common stock being distributed to it. Blackstone has reported that it has no plans to sell in the near term any of the SIRIUS shares being distributed to Blackstone itself or any of its principals. In connection with this distribution by Blackstone to its limited partners, SIRIUS has also entered into a customary registration rights agreement for the benefit of Blackstone and its limited partners.
Blackstone has not informed SIRIUS of its intentions relating to the warrants it owns to purchase approximately 42 million shares of SIRIUS common stock. In connection with the recapitalization of its balance sheet on March 7, 2003, SIRIUS issued these warrants to Blackstone at a blended exercise price of $0.99 per share. In connection with the execution of the registration rights agreement, Blackstone has agreed to shorten the term of its warrants to expire in September 2004.
SIRIUS also announced today that Peter G. Peterson, the co-founder and chairman of Blackstone, is resigning from the SIRIUS board of directors.
"SIRIUS' association with Blackstone has been a tremendous asset for the company. Blackstone's confidence, advice and investment in our company has truly made a difference in our ability to survive the difficult economic climate," said Joseph P. Clayton, President and Chief Executive Officer of SIRIUS. "On a personal note, I will truly miss Pete Peterson as a member of our board. He has been a source of inspiration and counsel to me at every turn."
Peter G. Peterson said: “I am stepping down from the SIRIUS board of directors because of our firm’s customary practice of discontinuing our board representation after distributions of this nature. I regret that I will be leaving the board, but I am pleased with the progress the company has made in 2003 in completing a recapitalization and then raising $350 million in recent weeks to facilitate execution of its business plan.”
SIRIUS is the only satellite radio service bringing listeners more than 100 streams of the best music and entertainment coast-to-coast. SIRIUS offers 60 music streams with no commercials, along with over 40 world-class sports, news and entertainment streams for a monthly subscription fee of only $12.95, with greater savings for upfront payments of multiple months or a year or more. Stream Jockeys create and deliver uncompromised music in virtually every genre to our listeners 24 hours a day. Satellite radio products bringing SIRIUS to listeners in the car, truck, home, RV and boat are manufactured by Kenwood, Panasonic, Clarion and Audiovox, and are available at major retailers including Circuit City, Best Buy, Car Toys, Good Guys, Tweeter, Ultimate Electronics, Sears and Crutchfield. SIRIUS is the leading OEM satellite radio provider, with exclusive partnerships with DaimlerChrysler, Ford and BMW. Automotive brands currently offering SIRIUS radios in select new car models include BMW, MINI, Chrysler, Dodge, Jeep®, Nissan, Infiniti and Mazda. Automotive brands that have announced plans to offer SIRIUS in select models include Ford, Lincoln, Mercury, Mercedes-Benz, Jaguar, Volvo, Audi, Volkswagen, Land Rover and Aston Martin.
Click on www.SIRIUS.com to listen to SIRIUS live, or to find a SIRIUS retailer or car dealer in your area.
Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to SIRIUS Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on our results of operations are: our dependence upon third parties to manufacture, distribute, market and sell SIRIUS radios and components for those radios; the unproven market for our service; our competitive position and any events which affect the useful life of our satellites.