Investor Relations

SIRIUS Satellite Radio Reports Strong First Quarter 2007 Results

- First Quarter Revenue Increases 61% to a Record $204 Million - Subscribers Increase 556,490 to Approximately 6.6 Million - Satellite Radio Leader with 66% Segment Share of Net Subscriber Additions - Net Loss Improves 68% Over Last Year - 2007 Guidance Reiterated

NEW YORK, May 1, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- SIRIUS Satellite Radio (Nasdaq: SIRI) today announced strong first quarter 2007 results, including a 61% increase in revenue to a record $204 million from the year ago quarter, strong first quarter subscriber growth of 556,490 driving ending subscribers to approximately 6.6 million and accounting for 66% of satellite radio segment share.

(Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )

"2007 is off to a great start," said Mel Karmazin, CEO of SIRIUS. "SIRIUS once again led the satellite radio segment in net subscriber additions marking the sixth straight quarter of leadership. At the same time, we increased revenue by 61% and reduced our net loss by 68% from last year's first quarter. We are very pleased with our strong operating results and we are on track to meet our 2007 guidance."

"SIRIUS is excited about the pending merger with XM. The audio entertainment market has changed dramatically since we received our licenses in 1997 and consumers now have a dizzying and ever-expanding array of options to choose from. We believe the merger makes sense for consumers and stockholders and we are confident that the transaction will be completed by the end of 2007."

SIRIUS ended first quarter of 2007 with 6,581,045 subscribers, up 61% from 4,077,747 subscribers at the end of the year-ago quarter. During first quarter of 2007, SIRIUS added 556,490 net subscribers consisting of 192,978 from the retail channel and 364,674 from the OEM channel. In first quarter of 2007, SIRIUS captured 66% of satellite radio segment share, marking the sixth consecutive quarter for leadership.

Total revenue for the first quarter of 2007 increased to $204.0 million, up 61% from $126.7 million for the year-ago quarter. Advertising revenue was $6.7 million during first quarter 2007 and average monthly revenue per subscriber (or "ARPU") was $10.46. Average monthly subscriber churn was 2.3%, and was consistent with previously provided 2007 churn guidance. SAC per gross subscriber addition was $104 for the first quarter of 2007.

SIRIUS reported a net loss of ($144.7) million, or ($0.10) per share for the first quarter of 2007, a 68% improvement from a net loss of ($458.5) million, or ($0.33) per share for the first quarter of 2006. The adjusted net loss for first quarter 2007 (adjusted to exclude stock-based compensation) improved to ($120.5) million, or ($0.08) per share, a 31% improvement from the adjusted net loss for first quarter 2006 of ($174.0) million, or ($0.13) per share.

    2007 OUTLOOK

    SIRIUS today reiterated the following guidance for the full year 2007:
    -- Total revenue approaching $1 billion
    -- More than 8 million subscribers at year-end
    -- Average monthly subscriber churn of approximately 2.2 - 2.4%
    -- SAC per gross subscriber addition of approximately $95

    Other Developments

During 2007, SIRIUS enhanced its exclusive agreements with Lincoln, Land Rover, Mitsubishi, Audi, MINI and Mercedes Benz USA. Under the new agreements, SIRIUS will become standard equipment on selected models leading to a significant increase in the production penetration levels.

SIRIUS announced enhanced programming during the first quarter, including the 'SIRIUSly Sinatra' channel, the 'Foxxhole' featuring Jamie Foxx, as well as the launch of every race in the NASCAR Nextel Cup Series, NASCAR Busch Series and NASCAR Craftsman Truck Series.

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.

FIRST QUARTER 2007 VERSUS FIRST QUARTER 2006

For the first quarter of 2007, SIRIUS recognized total revenue of $204.0 million compared to $126.7 million for the first quarter of 2006. This 61%, or $77.3 million, increase in revenue was driven by a $75.6 million increase in subscriber revenue resulting from the net increase in subscribers of 2,503,298, or 61%, from March 31, 2006 to March 31, 2007.

The company's adjusted loss from operations decreased $52.7 million to ($84.0) million for the first quarter of 2007 from ($136.7) million for the first 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 $77.3 million, which more than offset a $24.7 million increase in operating expenses.

Programming and content expenses increased $7.2 million to $57.1 million for the first quarter of 2007 from $49.9 million for the first quarter of 2006. The increase was primarily attributable to license fees associated with new programming.

Revenue share and royalties increased $13.6 million to $27.1 million for the first quarter of 2007 from $13.5 million for the first quarter of 2006. The increase was primarily attributable to an increase in the OEM subscriber base and higher revenue.

Customer service and billing expenses increased $4.1 million to $21.7 million for the first quarter of 2007 from $17.6 million for the first quarter of 2006. The increase was primarily attributable to call center operating costs necessary to accommodate the increase in the company's subscriber base and transaction fees due to the addition of new subscribers. Customer service and billing expenses per average subscriber per month declined 26% to $1.15 for the first quarter of 2007 from $1.55 for the first quarter of 2006.

Sales and marketing expenses were relatively consistent for the first quarter of 2007 as compared to the first quarter of 2006, despite a 61% increase in total revenue.

Subscriber acquisition costs decreased $10.9 million to $98.2 million for the first quarter of 2007 from $109.1 million for the first quarter of 2006. This decrease was primarily attributable to lower commissions and decreased aftermarket subsidies, as the company continued to reduce manufacturing and chip set costs, offset by increased OEM hardware subsidies due to higher production volume.

SAC per gross subscriber addition decreased 8% from $113 for the first quarter of 2006 to $104 for the first quarter of 2007 primarily due to lower average commission rates and decreased average subsidy rates as the company continued to reduce manufacturing and chipset costs.

General and administrative expenses increased $6.0 million to $23.4 million for the first quarter of 2007 from $17.4 million for the first quarter of 2006. The increase was primarily the result of overhead expansion to support the growth of the business.

For the first quarter of 2006, the company recorded $4.4 million for its share of SIRIUS Canada Inc.'s net loss.

SIRIUS reported a net loss of ($144.7) million, or ($0.10) per share, for the first quarter of 2007, including a ($0.02) per share impact from stock- based compensation, compared to a net loss of ($458.5) million, or ($0.33) per share, in the year-ago quarter, including a ($0.20) per share impact from stock-based compensation. The adjusted net loss per share, or net loss per share excluding stock-based compensation, was ($0.08) in the first quarter of 2007 as compared to an adjusted net loss per share of ($0.13) in the first quarter of 2006 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

PENDING MERGER WITH XM

On February 19, 2007, SIRIUS and XM Satellite Radio announced a definitive agreement under which the companies will be combined in a tax-free, all-stock merger of equals. XM stockholders will receive 4.6 shares of SIRIUS common stock for each share of XM they own. XM and SIRIUS stockholders will each own approximately 50 percent of the combined company.

The transaction is subject to approval by both companies' stockholders, the satisfaction of customary closing conditions and regulatory review and approvals, including antitrust agencies and the FCC. The companies expect the transaction to be completed by the end of 2007.

The companies filed their Merger Agreement with the Securities and Exchange Commission on a Form 8-K on February 21, 2007.

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of SIRIUS and XM plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of SIRIUS and XM. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at www.sec.gov. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC can also be obtained by directing a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite Radio Holdings Inc., 1500 Eckington Place, NE, Washington, DC 20002, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and its proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on April 23, 2007 and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2006 which was filed with the SEC on March 1, 2007 and its proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on April 17, 2007. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC when they become available.



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

     Subscribers:
                                                    For the Three Months
                                                       Ended March 31,
                                                   2007               2006

     Beginning subscribers                      6,024,555          3,316,560
     Net additions                                556,490            761,187
       Ending subscribers                       6,581,045          4,077,747

       Retail                                   4,234,804          3,000,321
       OEM                                      2,323,683          1,049,036
       Hertz                                       22,558             28,390
     Ending subscribers                         6,581,045          4,077,747

       Retail                                     192,978            534,958
       OEM                                        364,674            225,343
       Hertz                                       (1,162)               886
     Net additions                                556,490            761,187


     Metrics:
                                                    For the Three Months
                                                       Ended March 31,
                                                   2007              2006

    Gross subscriber additions                   988,458            960,610
    Deactivated subscribers                      431,968            199,423
    Average monthly churn (1)(6)                   2.3 %              1.8 %
    SAC per gross subscriber addition
     (2)(6)                               $          104    $           113
    Customer service and billing
     expenses per average subscriber
     (3)(6)                               $         1.15    $          1.55
    Total revenue                         $      204,037    $       126,664

    Free cash flow (4)(6)                 $     (146,715)   $      (165,537)

    Monthly ARPU:
      Average monthly subscriber
       revenue per subscriber
       before effects of Hertz
       subscribers and mail-in  rebates   $        10.30    $         10.70
      Effects of Hertz subscribers                  0.04               0.03
      Effects of mail-in rebates                   (0.24)             (0.58)
      Average monthly subscriber
       revenue per subscriber                      10.10              10.15
      Average monthly net advertising
       revenue per subscriber                       0.36               0.65

      ARPU (5)(6)                         $        10.46    $         10.80



                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
                           SUBSCRIBER DATA, METRICS
              AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED
                   (In thousands, except per share amounts)
                                 (Unaudited)

     Adjusted Loss from Operations:
                                                       For the Three Months
                                                          Ended March 31,
                                                      2007              2006

     Net loss                                $     (144,745)   $    (458,544)
           Depreciation                              26,786           24,933
           Stock-based compensation                  24,260          284,586
           Other income and expense                   9,145           11,622
           Income tax expense                           555              753
           Adjusted loss from operations (7) $      (83,999)   $    (136,650)


    Adjusted Net Loss and Adjusted
     Net Loss per Share:
                                                       For the Three Months
                                                         Ended March 31,
                                                      2007             2006

     Net loss                                $     (144,745)  $     (458,544)
        Stock-based compensation                     24,260          284,586

     Adjusted net loss (8)                   $     (120,485)  $     (173,958)
     Net loss per share (basic and diluted)  $        (0.10)  $        (0.33)
        Stock-based compensation                       0.02             0.20
     Adjusted net loss per share
      (basic and diluted) (8)                $        (0.08)  $        (0.13)
     Weighted average common shares
      outstanding (basic and diluted)             1,457,011        1,386,982



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

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

     Total revenue                             $     204,037   $     126,664
     Operating expenses:
      Satellite and transmission                       7,330           7,301
      Programming and content                         57,063          49,934
      Revenue share and royalties                     27,134          13,527
      Customer service and billing                    21,654          17,618
      Cost of equipment                                9,292           3,465
      Sales and marketing                             32,518          32,279
      Subscriber acquisition costs                    98,237         109,144
      General and administrative                      23,403          17,367
      Engineering, design and development             11,405          12,679
      Depreciation                                    26,786          24,933
      Stock-based compensation                        24,260         284,586
     Total operating expenses                        339,082         572,833
     Loss from operations                           (135,045)       (446,169)
      Other income (expense)                          (9,145)        (11,622)
     Loss before income taxes                       (144,190)       (457,791)
      Income tax expense                                (555)           (753)
     Net loss                                  $    (144,745)  $    (458,544)



                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share amounts)
                                 (Unaudited)
                                                        For the Three Months
                                                          Ended March 31,
                                                        2007           2006
     Revenue:
        Subscriber revenue, including effects
         of mail-in rebates                      $    190,796   $    115,181
        Advertising revenue, net of agency fees         6,721          7,338
        Equipment revenue                               4,671          3,692
        Other revenue                                   1,849            453
     Total revenue                                    204,037        126,664
     Operating expenses (excludes depreciation
      shown separately below) (1):
        Cost of services:
           Satellite and transmission                   7,986          8,203
           Programming and content                     59,998        299,734
           Revenue share and royalties                 27,134         13,527
           Customer service and billing                21,853         17,862
           Cost of equipment                            9,292          3,465
        Sales and marketing                            38,162         34,481
        Subscriber acquisition costs                  100,117        119,043
        General and administrative                     35,343         31,873
        Engineering, design and development            12,411         19,712
        Depreciation                                   26,786         24,933
     Total operating expenses                         339,082        572,833
        Loss from operations                         (135,045)      (446,169)
     Other income (expense):
        Interest and investment income                  6,042          9,937
        Interest expense, net of amounts
         capitalized                                  (15,192)       (17,124)
        Equity in net loss of affiliate                     -         (4,445)
        Other income                                        5             10
     Total other income (expense)                      (9,145)       (11,622)
        Loss before income taxes                     (144,190)      (457,791)
        Income tax expense                               (555)          (753)
           Net loss                              $   (144,745)  $   (458,544)
     Net loss per share (basic and diluted)      $      (0.10)  $      (0.33)
     Weighted average common shares outstanding
      (basic and diluted)                           1,457,011      1,386,982

     (1) Amounts related to stock-based compensation included in other
         operating expenses were as follows:

     Satellite and transmission                  $        656   $        902
     Programming and content                            2,935        249,800
     Customer service and billing                         199            244
     Sales and marketing                                5,644          2,202
     Subscriber acquisition costs                       1,880          9,899
     General and administrative                        11,940         14,506
     Engineering, design and development                1,006          7,033
     Total stock-based compensation              $     24,260   $    284,586



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

                                                           As of
                                                March 31,         December 31,
                                                 2007                2006
                                              (Unaudited)
    Cash, cash equivalents and
     marketable securities             $         264,122    $        408,921
       Restricted investments                     77,850              77,850
       Working capital                          (270,900)           (257,799)
       Total assets                            1,506,147           1,658,528
       Long-term debt                          1,067,339           1,068,249
       Total liabilities                       1,928,057           2,047,599
       Accumulated deficit                    (3,978,465)         (3,833,720)
       Stockholders' deficit                    (421,910)           (389,071)



                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In Thousands)
                                 (Unaudited)

                                                    For the Three Months Ended
                                                             March 31,
                                                       2007             2006
     Cash flows from operating
      activities:

      Net loss                                $     (144,745)  $    (458,544)
      Adjustments to reconcile net loss to
       net cash used in operating activities:
        Depreciation                                  26,786          24,933
        Non-cash interest expense                        754             761
        Provision for doubtful accounts                2,088           1,777
        Non-cash equity in net loss of affiliate           -           4,445
        (Gain) loss on disposal of assets                 (4)            221
        Stock-based compensation                      24,260         284,586
        Deferred income taxes                            555             753
      Changes in operating assets and liabilities:
        Accounts receivable                            6,639           9,952
        Inventory                                       (473)         (1,198)
        Receivables from distribution partners        (7,569)         (8,687)
        Prepaid expenses and other current assets     (9,173)        (13,071)
        Other long-term assets                        (2,924)            579
        Accounts payable and accrued expenses        (47,811)        (45,220)
        Accrued interest                             (11,763)        (10,460)
        Deferred revenue                              21,731          44,458
        Other long-term liabilities                    7,702           7,543
          Net cash used in operating activities     (133,947)       (157,172)
     Cash flows from investing activities:
      Additions to property and equipment            (12,458)         (5,496)
      Sales of property and equipment                     96              52
      Purchases of restricted and other investments     (310)         (2,869)
      Purchases of available-for-sale securities           -         (71,600)
      Sales of available-for-sale securities          10,850         104,450
          Net cash (used in) provided
           by investing activities                    (1,822)         24,537
     Cash flows from financing activities:
      Proceeds from exercise of stock options          1,510           1,459
          Net cash provided by financing activities    1,510           1,459
     Net decrease in cash and cash equivalents      (134,259)       (131,176)
     Cash and cash equivalents at the beginning
      of period                                      393,421         762,007
     Cash and cash equivalents at the end of
      period                                  $      259,162   $     630,831



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
                                                  Ended March 31,
                                              2007              2006

    Subscriber acquisition costs       $     100,117     $     119,043
    Less: stock-based compensation            (1,880)           (9,899)
    Add: margin from direct sale of
     SIRIUS radios and accessories             4,621              (227)
    SAC                                $     102,858     $     108,917
    Gross subscriber additions               988,458           960,610
    SAC per gross subscriber           $         104     $         113



    (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
                                              Ended March 31,
                                          2007            2006
    Customer service and billing
     expenses                       $     21,853    $     17,862
    Less: stock-based compensation          (199)           (244)
    Customer service and billing
     expenses, as adjusted          $     21,654    $     17,618
    Daily weighted average number
     of subscribers                    6,295,282       3,782,543
    Customer service and billing
     expenses, as adjusted, per
     average subscriber             $       1.15    $       1.55



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


                                                    For the Three Months
                                                       Ended March 31,
                                                   2007              2006

    Net cash used in operating activities   $    (133,947)    $     (157,172)
    Additions to property and equipment           (12,458)            (5,496)
    Restricted and other investment
     activity                                        (310)            (2,869)
    Free cash flow                          $    (146,715)    $     (165,537)



     (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
                                              Ended March 31,
                                           2007             2006

    Subscriber revenue              $     190,796    $     115,181
    Net advertising revenue                 6,721            7,338
    Total subscriber and net
     advertising revenue            $     197,517    $     122,519
    Daily weighted average number
     of subscribers                     6,295,282        3,782,543
    ARPU                            $       10.46    $       10.80



    (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, loss from
        redemption of debt and 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 NHL, and broadcasts live play-by- play games of the NFL, NBA and NHL, 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 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, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on 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, 2006 filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on our operational results are: our pending merger with XM Satellite Radio Holdings, Inc. ("XM"), including related uncertainties and risks and the impact on our business if the merger is not completed; any events which affect the useful life of our satellites; our dependence upon third parties, including manufacturers of SIRIUS radios, retailers, automakers and programming providers; and our competitive position versus other audio entertainment providers.

    E-SIRI

    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

Paul Blalock, +1-212-584-5174, pblalock@siriusradio.com, or Hooper Stevens,
+1-212-901-6718, hstevens@siriusradio.com, both of SIRIUS
http://www.sirius.com/

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