January 5, 2005

SIRIUS And Microsoft To Collaborate To Develop Video Service

SIRIUS Selects Windows Media Video 9 for Mobile Video Service

NEW YORK and LAS VEGAS, NV – January 5, 2005 – SIRIUS Satellite Radio (NASDAQ: SIRI) today announced at the Consumer Electronics Show in Las Vegas that it has selected Windows Media Video 9 for use in SIRIUS’ mobile video platform, and has reached an agreement with Microsoft to collaborate in the further development of video applications.

SIRIUS plans to offer a video service in the second half of 2006, and expects to devote 2-3 channels of premium video content designed primarily for children. With the explosive growth of DVD sales, video capabilities in automobiles are quickly becoming a prime feature for families and travelers. The automobile industry is increasingly interested in offering entertainment features to their new car buyers. According to SIRIUS, its automotive partners are eager proponents of the service, given the strong demand for rear seat video entertainment.

"We will take the DVD experience to the next level, offering the best content easily available to families and consumers,” said Mel Karmazin, CEO of SIRIUS. “Working together with Microsoft will help ensure the exciting development of a solid and user friendly video platform for SIRIUS for years to come."

"We are excited to be working with SIRIUS on its new mobile video service that will be delivered using our technology," said Amir Majidimehr, Corporate Vice President of the Windows Digital Media Division at Microsoft. "We will further work together to enable consumers to experience SIRIUS video whether on the go or at home -- from the initial mobile service in vehicles to the PC and home entertainment devices."

According to Microsoft, the high-quality and compression efficiencies of this technology are well suited for reception of video in mobile environments. SIRIUS broadcasts over 120 channels of commercial free music, news, talk and entertainment programming, and the addition of its video channels are not expected to affect the current audio fidelity of the company’s existing channels.

"Working with Microsoft to utilize the compression efficiencies inherent to WMV9 will enable SIRIUS to deliver content optimized for satellite broadcasts and reception," said Jim Meyer, President of Operations and Sales for SIRIUS.

SIRIUS delivers more than 120 channels of the best commercial-free music, compelling talk shows, news and information, and the most exciting sports programming to listeners across the country in digital quality sound. SIRIUS offers 65 channels of 100% commercial-free music, and features over 55 channels of sports, news, talk, entertainment, traffic and weather for a monthly subscription fee of only $12.95. SIRIUS also broadcasts live play-by-play games of the NFL and NBA, and is the Official Satellite Radio partner of the NFL.

SIRIUS radios for the car, truck, home, RV and boat are manufactured by Alpine, Audiovox, Blaupunkt, Clarion, Delphi, Jensen, JVC, Kenwood, Sanyo and XACT Communications. Available in more than 25,000 retail locations, SIRIUS radios can be purchased at major retailers including Best Buy, Circuit City, Crutchfield, Office Depot, Sears, Target, Wal-Mart and RadioShack. SIRIUS is also available at heavy truck dealers and truck stops nationwide.

SIRIUS radios are currently offered in vehicles from Audi, BMW, Chrysler, Dodge, Ford, Infiniti, Jeep?, Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Porsche and Volkswagen. Beginning in February 2005, SIRIUS will also be available in Toyota, Lexus and Scion vehicles. Hertz currently offers SIRIUS at 53 major locations around the country.

Click on 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, 2003 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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