Howard Stern Earns Incentive Payment Reflecting Record Subscriber Growth
NEW YORK, Jan 09, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- SIRIUS Satellite Radio (Nasdaq: SIRI) today announced that it exceeded pre-Howard Stern subscriber estimates for the year ended 2006 by over two million subscribers. Based on the company's subscriber count on December 31, 2006, and pursuant to the October 2004 agreement with Stern, today Sirius delivered to affiliates of Stern 22,058,824 million shares of common stock, valued at approximately $82.9 million. This stock-based payment resulted from Sirius' December 31, 2006 subscriber count exceeding a specified target by more than two million subscribers. This target was agreed upon in October 2004 based upon the consensus estimate of securities analysts at that time of approximately 3.5 million Sirius subscribers at December 31, 2006. Sirius ended 2006 with approximately 6,024,000 subscribers.
"The decision to bring Howard Stern to SIRIUS required a very significant commitment and we are very pleased that our investment has dramatically paid off," said Mel Karmazin, CEO of SIRIUS. "SIRIUS has significantly outperformed earlier subscriber expectations, now generating over $300 million more revenue than Wall Street expected at the time Howard agreed to join us. Our exceptional programming, product offerings, and brand have led SIRIUS to set a satellite radio record in 2006 with 2.7 million net subscriber additions."
Sirius' agreement with Stern provides for additional stock-based performance bonuses if the company exceeds an escalating set of specified subscriber targets by increasing amounts substantially greater than two million. The shares of SIRIUS common stock issued, or any likely to be issued to Stern in the future, will not increase the company's fully diluted share count, as certain other currently outstanding warrants will expire without exercise in the ordinary course. Expense related to this payment has been reflected in our operating results throughout 2006.
SIRIUS intends to file a registration statement with the SEC to register these shares of common stock being delivered to affiliates of Howard Stern.
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, NBA and NHL and broadcasts live play-by-play games of the NFL, NBA and NHL. All SIRIUS programming is available for a monthly subscription fee of only $12.95.
SIRIUS Internet Radio (SIR) is a CD-quality, 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 75 channels of talk, entertainment, sports, and 100% commercial free music.
SIRIUS products for the car, truck, home, RV and boat are available in more than 25,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.
SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Rolls Royce, Scion, Toyota, Porsche, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.
Click on http://www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.
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, 2005 and Quarterly Reports on Form 10-Q for the quarters ended June 30, 2006 and September 30, 2006 filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on our operational results are: our dependence upon third parties, including manufacturers of SIRIUS radios, retailers, automakers and programming partners, our competitive position and any events which affect the useful life of our satellites.
G-SIRI Contact: Paul Blalock SIRIUS 212.584.5174 firstname.lastname@example.org Michelle McKinnon SIRIUS 212.584.5285 email@example.com
SOURCE SIRIUS Satellite Radio
Paul Blalock, +1-212-584-5174, firstname.lastname@example.org, or Michelle McKinnon, +1-212-584-5285, email@example.com, both of SIRIUS
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