NEW YORK and DETROIT, June 6, 2005 /PRNewswire-FirstCall via COMTEX/ -- SIRIUS Satellite Radio (Nasdaq: SIRI), and the Ford Motor Company (NYSE: F), today announced an agreement that extends SIRIUS' exclusive relationship with Ford through September 2011, on certain terms and conditions. All Ford Motor Company brands in the U.S. -- Ford, Lincoln Mercury, Land Rover, Jaguar, Volvo, Aston Martin and Mazda -- are covered by the agreement.
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"Subscriptions to SIRIUS have increased dramatically over the past several years," said Phil Martens, Ford's Group Vice President of Product Creation. "So, it's only natural that Ford would want to continue to make SIRIUS' unique mix of programming available to Ford buyers in the future. Our relationship provides customers with the best of both worlds -- innovative technology, style and driving experience."
"We are delighted that Ford has decided to extend its exclusivity with SIRIUS, enabling future Ford buyers to experience the best programming in satellite radio," said Mel Karmazin, CEO of SIRIUS. "Ford and SIRIUS are both dedicated to providing our customers with the best quality possible. Now, Ford buyers can be assured that our two companies will continue to work together in the future to make their driving experience even more pleasurable."
Earlier this year, Ford and Lincoln Mercury announced plans to target up to 21 vehicle lines for factory installation of SIRIUS over the 2006 and 2007 model years, and announced that they expect to generate up to one million SIRIUS subscribers over the two model year period. In total, nearly 90% of Ford and Lincoln Mercury vehicles will have SIRIUS as a factory installed option for the 2008 model year. Factory installed volumes are expected to significantly increase.
Land Rover recently announced plans to offer SIRIUS as a factory-installed option on select vehicle lines, beginning with the 2006 model year. Volvo, Jaguar and Mazda currently offer SIRIUS as a dealer-installed option, with future plans to offer SIRIUS as a factory-installed option and/or as an option installed as overseas vehicles enter U.S. ports.
Ford has the option to extend the agreement through September 2013. The agreement also contains customary terms and conditions, including termination rights. Beginning in January 2009, Ford may elect to become nonexclusive under the agreement, in which case Ford would forfeit all future economic benefits, which could be significant.
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. SIRIUS also broadcasts live play-by-play games of the NFL and NBA, and is the Official Satellite Radio partner of the NFL.
Click on http://www.sirius.com to listen to SIRIUS live, or to find a SIRIUS retailer or car dealer.
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, 2004 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.
SOURCE SIRIUS Satellite Radio
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