SIRIUS MORE THAN DOUBLES SUBSCRIBERS IN FIRST QUARTER 2003
- SUBSCRIBERS UP 127% OVER LAST YEAR
- BRAND AWARENESS DOUBLES SINCE BEGINNING OF YEAR
- “PREFERRED PLAN” OF $6.99 FOR ADDITIONAL SUBSCRIPTIONS OFFERED
- “LIFETIME OF MUSIC & MORE PLAN” INTRODUCED AT $399.99
- FINANCIAL RECAPITALIZATION CLOSED RESULTING IN IMPROVED BALANCE SHEET AND LIQUIDITY
- COMPANY RELEASES FIRST QUARTER 2003 FINANCIAL RESULTS
NEW YORK — May 14, 2003 — SIRIUS (NASDAQ: SIRI), the premier satellite radio broadcaster and only service delivering uncompromised Coast-to-coast music and entertainment for your car and home, today announced that it more than doubled its subscribers in the first quarter of this year to approximately 68,000, meeting an important target for the second company to offer nationwide satellite radio service. The substantial growth in subscribers represents a 127 percent increase over its end-of-year 2002 figure.
“These excellent subscriber results indicate that we are beginning to see some traction in the marketplace,” said Joseph P. Clayton, President and CEO of SIRIUS Satellite Radio. “With the introduction of our transportable ‘Plug & Play’ products from Kenwood and Audiovox hitting retail shelves this summer, we fully expect to exceed 100,000 subscribers this quarter, and reach our goal of over 300,000 subscribers by the end of the year.”
SIRIUS also indicated that its brand awareness more than doubled since the beginning of the company’s first brand advertising campaign in February of this year. These results were based on a category brand monitoring study conducted by Diagnostic Research and commissioned by SIRIUS.
With more subscribers signing up every day, SIRIUS is introducing a “Preferred Plan” for multiple subscriptions and a “Lifetime of Music & More Plan.” On the “Preferred Plan,” once a subscriber pays the initial subscription rate of $12.95, an additional subscription for that subscriber will cost only $6.99. On the “Lifetime of Music & More Plan,” SIRIUS will charge a one-time fee of $399.99 that will cover the life of the satellite radio unit purchased.
SIRIUS also announced its financial results for the quarter ended March 31, 2003. SIRIUS launched its service nationwide on July 1, 2002, and had 68,059 subscribers on March 31, 2003. In addition, on March 7, 2003, SIRIUS closed a $1.2 billion recapitalization, which eliminated approximately 91% of the company’s debt and 100% of its convertible preferred stock, and raised $200 million of new equity. SIRIUS currently has funds to cover estimated funding needs into the second quarter of 2004.