January 7, 2004

Surrounded By Satellites: SIRIUS Introduces Satellite Radio's First Surround Sound Capabilities

New Feature Won't Require Any Additional Hardware for Consumers

CES, LAS VEGAS & NEW YORK – January 7, 2004 – SIRIUS Satellite Radio (NASDAQ: SIRI), known for delivering the very best in commercial-free music and premium sports programming to cars and homes across the country, today demonstrated the first surround sound capabilities for satellite radio with a matrix surround signal over one of SIRIUS' music streams.

SIRIUS has chosen to adopt the Dolby Pro Logic II as the standard for encoding. The surround sound feature is compatible with virtually all surround sound audio systems already on the market for both the home and the car, including such names as Logic 7TM, Circle SurroundTM, Dolby Pro Logic I & IITM, DTSTM and more.

SIRIUS chose Dolby Pro Logic II because it utilizes very small numbers of bits to provide a higher-degree of channel separation. More importantly, it allows SIRIUS surround sound broadcasts to be backwards compatible with more than 100 million existing home A/V receivers, as well as surround sound systems in most automobiles. Dolby is expected to work with SIRIUS to optimize the encoding system for Dolby surround sound.

"SIRIUS subscribers have asked for multi-channel surround sound and we are thrilled to be the first satellite radio provider to offer this capability," said Larry Pesce, Senior Vice President Product Development and Strategic Planning, SIRIUS. "As a premium service, we will continue to introduce capabilities and services that enrich the SIRIUS entertainment experience, at no additional cost to our subscribers."

As most content on today's CDS was not recorded in multi-channel format, SIRIUS has begun updating its library to include multi-channel DVD Audio discs and SACD discs. The first multi-channel recordings and broadcasts will be of SIRIUS Sessions, SIRIUS' daily live concert series. SIRIUS will broadcast surround sound across all streams where multi-channel can be enjoyed, beginning with the CES 2004 demonstration.

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. SIRIUS is also the official satellite radio partner of the NFL. 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. Genmar Holdings, the world’s largest manufacturer of recreational boats, Formula Boats and Winnebago, the leading supplier of recreational vehicles and motor homes, also offer SIRIUS. Hertz currently offers SIRIUS in 29 vehicle models at 53 major locations around the country.

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.

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