August 1, 2006

SIRIUS Reports Strong Second Quarter 2006 Results

- Company Increases 2006 Revenue and Subscriber Guidance - Revenue Nearly Triples Year-Over-Year to More Than $150 Million - Satellite Radio Market Share Leader For Third Consecutive Quarter

NEW YORK, Aug 01, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- SIRIUS Satellite Radio (Nasdaq: SIRI) today announced that its second quarter 2006 revenue nearly tripled from the year-ago second quarter to more than $150 million. The company increased its 2006 guidance for total revenue to $615 million and for year-end subscribers to 6.3 million.

SIRIUS ended the second quarter with 4,678,207 subscribers, 158% higher than second quarter 2005 ending subscribers of 1,814,626. During the second quarter of 2006, SIRIUS added 600,460 net subscribers, a 64% increase over second quarter 2005 net subscriber additions of 365,931. For the third consecutive quarter, SIRIUS led the satellite radio industry in net subscriber additions, capturing a record 60% share of industry net additions in the second quarter.

"Continued strong demand for SIRIUS' products and programming gives us confidence to increase our revenue and subscriber guidance," said Mel Karmazin, CEO of SIRIUS. "We continue to be excited about the growth prospects for satellite radio and remain pleased with our solid execution as we approach positive free cash flow."

Total revenue for the second quarter of 2006 increased to a record $150.1 million, nearly triple last year's second quarter total revenue of $52.2 million. Average monthly revenue per subscriber (or "ARPU") was $11.16 in the second quarter of 2006, up from $10.50 in the year-ago second quarter. ARPU for the second quarter of 2006 included a $0.62 contribution from net advertising revenue, compared with a $0.22 contribution from net advertising revenue in the second quarter of 2005. Average monthly churn was 1.8%, in line with the company's annual churn guidance, reflecting total churn from both retail and OEM channels. SAC per gross subscriber addition was $131 for the second quarter of 2006, an 18% improvement over second quarter 2005 SAC per gross subscriber addition of $160.

During the second quarter of 2006, SIRIUS added 276,294 net subscribers from its retail channel, a 13% increase over 244,985 retail net additions during the second quarter of 2005. The company also added 324,574 net subscribers from its automotive OEM channel, 167% more than second quarter 2005 OEM net subscriber additions of 121,664. Strong contributions by SIRIUS' exclusive automotive partners, DaimlerChrysler and Ford, fueled OEM growth during the quarter.

SIRIUS reported a net loss of ($237.8) million, or ($0.17) per share, for the second quarter of 2006. The net loss in the second quarter of 2006 included a ($0.01) per share impact associated with the write-off of certain long-lead time parts purchased in 1999 that will no longer be needed in light of the company's new satellite contract.

Other Developments

In the second quarter of 2006, SIRIUS continued to augment "The Best Radio on Radio" by announcing a variety of new programming initiatives, including:

    - The Catholic Channel, a 24x7 lifestyle channel in collaboration with The
      Archdiocese of New York, that will feature contemporary talk and music
      programming as well as live daily masses from St. Patrick's Cathedral in
      New York City.
    - A radio news bureau with Variety, the "show business bible," originating
      from Variety's Los Angeles offices.  Variety will provide the latest in
      entertainment news to SIRIUS' national radio audience multiple times per
      hour every day.
    - A weekly two-hour series featuring dynamic and compelling interviews by
      broadcasting icon Barbara Walters from her 30-year archive of interviews
      with great entertainers and world leaders.
    - A live, weekly three hour health and wellness call-in talk show on
      Saturday mornings hosted by Deepak Chopra, the best-selling author and
      leader in the field of mind and body medicine.
    - An exclusive weekly talk show with Mark Cuban, the groundbreaking
      entrepreneur and outspoken owner of the NBA's Dallas Mavericks.
    - New talk shows featuring leading sports personalities Jerry Rice, the
      legendary NFL receiver; Tiki Barber, the New York Giants running back;
      and Tony Stewart, the two-time and reigning NASCAR NEXTEL Cup Series
      champion.

During the second quarter of 2006, SIRIUS and Kia announced that Kia will exclusively offer SIRIUS as factory standard equipment in all of its vehicles through 2014, with an optional three-year extension to 2017. SIRIUS will become a standard feature in all 2009 model year Kia vehicles, beginning in 2008.

SIRIUS' Canadian affiliate, SIRIUS Canada, passed the 100,000 subscriber milestone in early May, less than six months after launching its Canadian service. SIRIUS Canada is Canada's leading satellite radio service and the number one choice among Canadian satellite radio subscribers. Ford of Canada and SIRIUS Canada recently announced an exclusive long-term agreement to make SIRIUS receivers factory-installed equipment in virtually all Ford vehicles sold in Canada by 2008.

In June 2006, SIRIUS announced that it had entered into an agreement with Space Systems/Loral for the design and construction of a new satellite. Construction of the satellite is expected to be completed in the fourth quarter of 2008. The satellite will be launched on a Proton rocket acquired by SIRIUS under a previously announced launch contract. The aggregate cost of designing, building and launching the satellite and insuring its launch will be approximately $260 million.

SIRIUS has disclosed that the FCC is conducting a review of the company's products as well as products of other companies containing FM transmitters. SIRIUS believes the company's radios that are currently being produced comply with applicable FCC rules. SIRIUS and its manufacturers are cooperating with the FCC to obtain new equipment authorizations for the company's remaining affected products.

    Guidance
    SIRIUS today provided the following guidance for full year 2006:
    - 6.3 million subscribers at year-end, increased from previous guidance of
      over 6.2 million
    - Average monthly churn of approximately 1.8%, in line with previous
      guidance
    - SAC per gross subscriber addition approaching $110, in line with
      previous guidance
    - Total revenue of $615 million, up from previous guidance of over $600
      million
    - Adjusted loss from operations of approximately ($565) million, in line
      with previous guidance
    - Free cash flow loss of approximately ($500) million, reflecting the
      impact of the satellite agreement announced in June 2006 and changes to
      working capital assumptions, up from previous guidance of
      ($480) million (5)
    - SIRIUS' first quarter of positive free cash flow, after capital
      expenditures, could be reached as early as the fourth quarter of 2006

    Previously issued longer term guidance remains unchanged.

    RESULTS OF OPERATIONS

The discussion of operating expenses below excludes the effects of equity granted to third parties and employees. The company believes this presentation improves the transparency of disclosure and is consistent with the way operating results are evaluated.

SECOND QUARTER 2006 VERSUS SECOND QUARTER 2005

For the second quarter of 2006, SIRIUS recognized total revenue of $150.1 million compared with $52.2 million for the second quarter of 2005. This 188%, or $97.9 million, increase in revenue was primarily driven by an $88.0 million increase in subscriber revenue resulting from the net increase in subscribers of 2,863,581, or 158%, from June 30, 2005 to June 30, 2006, and a $7.1 million increase in net advertising revenue.

The company's adjusted loss from operations increased ($17.7) million to ($126.5) million for the second quarter of 2006 from ($108.8) million for the second quarter of 2005 (refer to the reconciliation table of net loss to adjusted loss from operations). This increase was driven by a 58%, or $40.0 million, increase in subscriber acquisition costs reflecting higher shipments of SIRIUS radios and chip sets and increased commissions to support a 92% increase in gross subscriber additions from 432,687 for the second quarter of 2005 to 830,571 for the second quarter of 2006. The increase in subscriber acquisition costs was more than offset by the 177%, or $88.0 million, increase in subscriber revenue as a result of a 158% increase in the company's subscriber base.

Satellite and transmission expenses increased $11.0 million to $17.7 million for the second quarter of 2006 from $6.7 million for the second quarter of 2005. The increase was primarily attributable to an impairment charge associated with certain satellite long-lead time parts that will no longer be needed in light of the company's new satellite contract.

Programming and content expenses increased $37.2 million to $53.0 million for the second quarter of 2006 from $15.8 million for the second quarter of 2005. The increase was primarily attributable to license fees and consulting costs associated with new programming, and higher broadcast and webstreaming royalties as a result of the company's larger subscriber base.

Customer service and billing expenses increased $6.0 million to $13.7 million for the second quarter of 2006 from $7.7 million for the second quarter of 2005. 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 34% to $1.05 for the second quarter of 2006 from $1.60 for the second quarter of 2005.

Sales and marketing expenses increased $22.4 million to $56.6 million for the second quarter of 2006 from $34.2 million for the second quarter of 2005. This 65% increase in sales and marketing expenses compared with a 92% increase in gross subscriber additions from 432,687 for the three months ended June 30, 2005 to 830,571 for the three months ended June 30, 2006. The increase was primarily attributable to less spending in second quarter 2005 in anticipation of the fourth quarter 2005 marketing campaign associated with the launch of Howard Stern; advertising costs for the new marketing campaign; cooperative marketing spend with the company's channel partners; and increased residuals and OEM revenue share as a result of a 158% increase in the company's subscriber base.

General and administrative expenses increased $7.6 million to $21.7 million for the second quarter of 2006 from $14.1 million for the second quarter of 2005. The increase was primarily a result of legal fees, employment-related costs and bad debt expense to support the growth of the business.

SIRIUS reported a net loss of ($237.8) million, or ($0.17) per share, for the second quarter of 2006, including a ($0.01) per share impact from the impairment loss and ($0.05) per share impact from equity charges, compared with a net loss of ($177.5) million, or ($0.13) per share, in the year-ago quarter, including a ($0.03) per share impact from equity charges. The adjusted net loss per share, or net loss per share excluding the impairment loss and equity charges, was ($0.11) for the second quarter of 2006 compared with an adjusted net loss per share of ($0.10) for the second quarter of 2005 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

SIX MONTHS ENDED JUNE 30, 2006 VERSUS SIX MONTHS ENDED JUNE 30, 2005

For the six months ended June 30, 2006, SIRIUS recognized total revenue of $276.7 million compared with $95.4 million for the six months ended June 30, 2005. This 190%, or $181.3 million, increase in revenue was primarily driven by a $161.3 million increase in subscriber revenue resulting from the net increase in subscribers of 2,863,581, or 158%, from June 30, 2005 to June 30, 2006, and a $13.9 million increase in net advertising revenue.

The company's adjusted loss from operations increased ($27.4) million to ($263.2) million for the six months ended June 30, 2006 from ($235.8) million for the six months ended June 30, 2005 (refer to the reconciliation table of net loss to adjusted loss from operations). This increase was driven by a 60%, or $82.0 million, increase in subscriber acquisition costs reflecting higher shipments of SIRIUS radios and chip sets and increased commissions to support a 127% increase in gross subscriber additions from 787,395 for the six months ended June 30, 2005 to 1,791,181 for the six months ended June 30, 2006. The increase in subscriber acquisition costs was more than offset by the 176%, or $161.3 million, increase in subscriber revenue as a result of a 158% increase in the company's subscriber base.

Satellite and transmission expenses increased $11.5 million to $25.0 million for the six months ended June 30, 2006 from $13.5 million for the six months ended June 30, 2005. The increase was primarily attributable to an impairment charge associated with certain satellite long-lead time parts that will no longer be needed in light of the company's new satellite contract.

Programming and content expenses increased $69.5 million to $109.5 million for the six months ended June 30, 2006 from $40.0 million for the six months ended June 30, 2005. The increase was primarily attributable to license fees and consulting costs associated with new programming, and higher broadcast and webstreaming royalties as a result of the company's larger subscriber base.

Customer service and billing expenses increased $12.3 million to $29.5 million for the six months ended June 30, 2006 from $17.2 million for the six months ended June 30, 2005. 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 38% to $1.21 for the six months ended June 30, 2006 from $1.96 for the six months ended June 30, 2005.

Sales and marketing expenses increased $26.5 million to $95.9 million for the six months ended June 30, 2006 from $69.4 million for the six months ended June 30, 2005. This 38% increase in sales and marketing expenses compared with a 127% increase in gross subscriber additions from 787,395 for the six months ended June 30, 2005 to 1,791,181 for the six months ended June 30, 2006. The increase was primarily attributable to increased residuals and OEM revenue share as a result of a 158% increase in the company's subscriber base, as well as increased cooperative marketing spend with the company's channel partners, advertising costs for the new marketing campaign and compensation related costs.

General and administrative expenses increased $11.8 million to $40.8 million for the six months ended June 30, 2006 from $29.0 million for the six months ended June 30, 2005. The increase was primarily a result of legal fees, employment-related costs and bad debt expense to support the growth of the business.

For the six months ended June 30, 2006, the company recorded ($4.4) million for its share of SIRIUS Canada, Inc.'s net loss.

SIRIUS reported a net loss of ($696.4) million, or ($0.50) per share, for the six months ended June 30, 2006, including a ($0.01) per share impact from the impairment loss and ($0.25) per share impact from equity charges, compared with a net loss of ($371.2) million, or ($0.28) per share, for the six months ended June 30, 2005, including a ($0.06) per share impact from equity charges. The adjusted net loss per share, or net loss per share excluding the impairment loss and equity charges, was ($0.24) for the six months ended June 30, 2006 compared with an adjusted net loss per share of ($0.22) for the six months ended June 30, 2005 (refer to the reconciliation table of net loss per share to adjusted net loss per share).



                 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       For the Six Months
                              Ended June 30,             Ended June 30,
                            2006         2005         2006         2005
    Beginning
     subscribers         4,077,747    1,448,695    3,316,560    1,143,258
    Net additions          600,460      365,931    1,361,647      671,368
    Ending subscribers   4,678,207    1,814,626    4,678,207    1,814,626
      Retail             3,276,615    1,354,798    3,276,615    1,354,798
      OEM                1,373,610      432,988    1,373,610      432,988
      Hertz                 27,982       26,840       27,982       26,840


    Metrics:
                             For the Three Months     For the Six Months
                                Ended June 30,           Ended June 30,
                             2006         2005         2006         2005
    Gross subscriber
     additions             830,571      432,687    1,791,181      787,395
    Deactivated
     subscribers           230,111       66,756      429,534      116,027
    Average monthly
     churn (1)(6)             1.8%         1.4%         1.8%         1.3%
    SAC per gross
     subscriber
     addition (2)(6)          $131         $160         $122         $173
    Customer service and
     billing expenses
     per average
     subscriber (3)(6)       $1.05        $1.60        $1.21        $1.96
    Monthly ARPU:
      Average monthly
       subscriber revenue
       per subscriber before
       effects of Hertz
       subscribers and
       mail-in rebates      $10.64       $10.60       $10.66       $10.61
      Effects of Hertz
       subscribers            0.05         0.05         0.04         0.03
      Effects of mail-in
       rebates               (0.15)       (0.37)       (0.35)       (0.23)
    Average monthly
     subscriber revenue
     per subscriber          10.54        10.28        10.35        10.41
    Average monthly
     net advertising
     revenue per
     subscriber               0.62         0.22         0.63         0.18
    ARPU (4)(6)             $11.16       $10.50       $10.98       $10.59


    Adjusted Loss from Operations:

                             For the Three Months     For the Six Months
                                Ended June 30,           Ended June 30,
                             2006         2005         2006         2005
    Net loss             $(237,828)   $(177,546)   $(696,372)   $(371,158)
      Impairment loss       10,917            -       10,917            -
      Depreciation          25,738       24,580       50,671       49,081
      Equity granted to
       third parties and
       employees            67,289       41,230      351,875       79,936
      Other income
       (expense)             6,778        2,404       18,400        5,197
      Income tax expense       578          560        1,331        1,120
    Adjusted loss from
     operations (7)      $(126,528)   $(108,772)   $(263,178)   $(235,824)


    Adjusted Net Loss and Adjusted Net Loss per Share:

                           For the Three Months       For the Six Months
                              Ended June 30,             Ended June 30,
                            2006         2005          2006         2005
    Net loss             $(237,828)   $(177,546)   $(696,372)   $(371,158)
      Impairment loss       10,917            -       10,917            -
      Equity granted to
       third parties and
       employees            67,289       41,230      351,875       79,936
    Adjusted net
     loss (8)            $(159,622)   $(136,316)   $(333,580)   $(291,222)
    Net loss per share
     (basic and diluted)    $(0.17)      $(0.13)      $(0.50)      $(0.28)
      Impairment loss         0.01            -         0.01            -
      Equity granted to
       third parties and
       employees              0.05         0.03         0.25         0.06
    Adjusted net loss
     per share (basic
     and diluted) (8)       $(0.11)      $(0.10)      $(0.24)      $(0.22)
    Weighted average
     common shares
     outstanding
     (basic and diluted) 1,404,022    1,324,270    1,395,549    1,319,318


    Condensed Consolidated Statements of Operations:

                            For the Three Months       For the Six Months
                               Ended June 30,             Ended June 30,
                             2006         2005         2006         2005
    Total revenue         $150,078      $52,194     $276,742      $95,410
    Operating expenses:
      Satellite and
       transmission         17,686        6,668       24,987       13,481
      Programming and
       content              53,011       15,769      109,455       40,047
      Customer service
       and billing          13,659        7,738       29,500       17,230
      Cost of equipment      3,467        1,952        6,932        2,928
      Sales and marketing   56,609       34,240       95,905       69,362
      Subscriber
       acquisition
       costs               108,663       68,693      217,807      135,786
      General and
       administrative       21,653       14,120       40,797       28,952
      Engineering, design
       and development      12,775       11,786       25,454       23,448
      Depreciation          25,738       24,580       50,671       49,081
      Equity granted to
       third parties and
       employees            67,289       41,230      351,875       79,936
        Total operating
         expenses          380,550      226,776      953,383      460,251
    Loss from operations  (230,472)    (174,582)    (676,641)    (364,841)
      Other income
       (expense)            (6,778)      (2,404)     (18,400)      (5,197)
    Loss before income
     taxes                (237,250)    (176,986)    (695,041)    (370,038)
      Income tax expense      (578)        (560)      (1,331)      (1,120)
    Net loss             $(237,828)   $(177,546)   $(696,372)   $(371,158)


                 Sirius Satellite Radio Inc. and Subsidiaries
                    Consolidated Statements of Operations
                    (In thousands, except per share data)
                                 (Unaudited)

                        For the Three Months Ended    For the Six Months Ended
                                  June 30,                   June 30,
                             2006          2005         2006          2005
    Revenue:
      Subscriber revenue,
       including effects
       of mail-in
       rebates            $137,636      $49,622     $252,817      $91,526
      Advertising revenue,
       net of agency fees    8,125        1,052       15,463        1,586
      Equipment revenue      3,096        1,503        6,788        2,270
      Other revenue          1,221           17        1,674           28
    Total revenue          150,078       52,194      276,742       95,410
    Operating expenses (1):
      Cost of services
      (excludes depreciation
      shown separately below):
        Satellite and
         transmission       18,496        7,097       26,699       14,469
        Programming and
         content            76,735       20,819      382,979       49,985
        Customer service
         and billing        13,863        7,864       29,948       17,495
        Cost of equipment    3,467        1,952        6,932        2,928
      Sales and marketing   61,676       41,516      103,174       90,068
      Subscriber
       acquisition
       costs               130,563       81,226      249,606      154,547
      General and
       administrative       34,558       22,452       68,208       44,561
      Engineering, design
       and development      15,454       19,270       35,166       37,117
      Depreciation          25,738       24,580       50,671       49,081
    Total operating
     expenses              380,550      226,776      953,383      460,251
      Loss from
       operations         (230,472)    (174,582)    (676,641)    (364,841)
    Other income
     (expense):
      Interest and
       investment income     8,873        4,790       18,810        9,277
      Interest expense     (15,660)      (7,201)     (32,784)     (14,526)
      Equity in net loss
       of affiliate              -            -       (4,445)           -
      Other income               9            7           19           52
    Total other
     income (expense)       (6,778)      (2,404)     (18,400)      (5,197)
      Loss before income
       taxes              (237,250)    (176,986)    (695,041)    (370,038)
      Income tax expense      (578)        (560)      (1,331)      (1,120)
        Net loss         $(237,828)   $(177,546)   $(696,372)   $(371,158)
    Net loss per share
     (basic and diluted)    $(0.17)      $(0.13)      $(0.50)      $(0.28)
    Weighted average
     common shares
     outstanding (basic
     and diluted)        1,404,022    1,324,270    1,395,549    1,319,318


    (1) Amounts related to equity granted to third parties and employees
        included in other operating expenses were as follows:


    Satellite and
     transmission             $810         $429       $1,712         $988
    Programming and
     content                23,724        5,050      273,524        9,938
    Customer service
     and billing               204          126          448          265
    Sales and marketing      5,067        7,276        7,269       20,706
    Subscriber acquisition
     costs                  21,900       12,533       31,799       18,761
    General and
     administrative         12,905        8,332       27,411       15,609
    Engineering, design
     and development         2,679        7,484        9,712       13,669
    Total equity granted
     to third parties
     and employees         $67,289      $41,230     $351,875      $79,936


                 Sirius Satellite Radio Inc. and Subsidiaries
                              Balance Sheet Data
                                (In thousands)
                                 (Unaudited)

                                                            As of
                                                    June 30,      December 31,
                                                      2006           2005
    Cash, cash equivalents and marketable
     securities                                     $583,588       $879,257
    Restricted investments                           108,315        107,615
    Working capital                                   67,646        404,481
    Total assets                                   1,811,396      2,085,362
    Long-term debt                                 1,083,929      1,084,437
    Total liabilities                              1,868,519      1,760,394
    Accumulated deficit                           (3,425,225)    (2,728,853)
    Stockholders' equity                             (57,123)       324,968


                 Sirius Satellite Radio Inc. and Subsidiaries
                           Statements of Cash Flows
                                (In thousands)
                                 (Unaudited)

                        For the Three Months Ended   For the Six Months Ended
                                 June 30,                   June 30,
                            2006          2005         2006         2005
    Cash flows from
     operating
     activities:
      Net loss           $(237,828)   $(177,546)   $(696,372)   $(371,158)
      Adjustments to
       reconcile net loss
       to net cash used
       in operating
       activities:
        Depreciation        25,738       24,580       50,671       49,081
        Non-cash interest
         expense               786          761        1,547        1,523
        Provision for
         doubtful accounts   2,003          882        3,780        2,282
        Non-cash equity
         in net loss of
         affiliate               -            -        2,276            -
        Loss on disposal of
         assets                320          125          541          252
        Impairment loss     10,917            -       10,917            -
        Equity granted to
         third parties and
         employees          67,289       41,230      351,875       79,936
        Deferred income
         taxes                 578          560        1,331        1,120
      Changes in operating
       assets and liabilities:
        Marketable securities    -            -            -           16
        Accounts receivable   (966)      (5,716)        8,986      (6,056)
        Inventory           (9,656)      (4,449)     (10,854)      (4,433)
        Prepaid expenses
        and other current
        assets             (13,724)      (4,373)     (35,482)      (7,554)
        Other long-term
         assets            (25,667)       1,635      (25,088)         478
        Accounts payable
         and accrued
         expenses           27,202       31,754      (18,018)      26,153
        Accrued interest    11,620       (2,862)       1,160         (126)
        Deferred revenue    29,389       30,800       73,847       50,223
        Other long-term
         liabilities         1,052       (2,018)       8,595       (3,542)
          Net cash used in
           operating
           activities     (110,947)     (64,637)    (270,288)    (181,805)
    Cash flows from
     investing activities:
      Additions to property
       and equipment       (22,284)      (3,975)     (27,780)     (10,863)
      Sales of property
       and equipment            71           47          123           59
      Purchases of
       restricted investments    -            -         (700)      (6,291)
      Release of restricted
       investments               -       10,997            -       10,997
      Purchases of
       available-for-sale
       securities          (36,900)           -     (108,500)           -
      Sales of
       available-for-sale
       securities           72,675            -      177,125        4,835
        Net cash provided
         by (used in)
         investing
         activities         13,562        7,069       40,268       (1,263)
    Cash flows from
     financing
     activities:
      Proceeds from exercise
       of stock options      1,517        5,111        2,976        6,104
      Other                      -            -            -           (8)
        Net cash provided
         by financing
         activities          1,517        5,111        2,976        6,096
    Net decrease in cash
     and cash
     equivalents           (95,868)     (52,457)    (227,044)    (176,972)
    Cash and cash
     equivalents at the
     beginning of period   630,831      629,376      762,007      753,891
    Cash and cash
     equivalents at the
     end of period        $534,963     $576,919     $534,963     $576,919


    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; average monthly revenue per subscriber, or ARPU; adjusted loss from operations; adjusted net loss; adjusted net loss per share; and free cash flow. 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 equity granted to third parties and
    employees, 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   For the Six Months Ended
                                  June 30,                   June 30,
                             2006          2005         2006         2005
    Subscriber acquisition
     costs                $130,563      $81,226     $249,606     $154,547
    Less: equity granted
     to third parties and
     employees             (21,900)     (12,533)     (31,799)     (18,761)
    Add: negative margin
     from direct sale of
     SIRIUS radios and
     accessories               371          449          144          658
    SAC                   $109,034      $69,142     $217,951     $136,444
    Gross subscriber
     additions             830,571      432,687    1,791,181      787,395
    SAC per gross
     subscriber addition      $131         $160         $122         $173


    (3) SIRIUS defines customer service and billing expenses per average
    subscriber as total customer service and billing expenses, excluding
    equity granted to third parties and employees, divided by the daily
    weighted average number of subscribers for the period.

    (4) 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   For the Six Months Ended
                                  June 30,                  June 30,
                             2006         2005         2006         2005
    Subscriber revenue    $137,636      $49,622     $252,817      $91,526
    Net advertising
     revenue                 8,125        1,052       15,463        1,586
    Total subscriber and
     net advertising
     revenue              $145,761      $50,674     $268,280      $93,112
    Daily weighted average
     number of
     subscribers         4,354,447    1,609,521    4,070,075    1,465,106
    ARPU                    $11.16       $10.50       $10.98       $10.59


    (5) SIRIUS defines free cash flow as cash flow from operating activities,
    capital expenditures and restricted investment activity.

    (6) SIRIUS believes average monthly churn, SAC per gross subscriber
    addition, customer service and billing expenses per average subscriber,
    ARPU and free cash flow provide meaningful supplemental information
    regarding operating performance and liquidity and are used for internal
    management purposes, when publicly providing the business outlook, and as
    a means to evaluate period-to-period comparisons.  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, as a substitute 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 and equity in
    net loss of affiliate; depreciation; impairment charges; and equity
    granted to third parties and employees 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 primary competitor.  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 expense and
    depreciation, and charges for impairment of property and equipment when
    deemed necessary.   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 equity
    granted to third parties and employees 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 equity
    granted to third parties and employees 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 equity
    granted to third parties and employees 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 prepared
    in accordance with GAAP.

    (8) SIRIUS refers to adjusted net loss and adjusted net loss per share as
    net loss and net loss per share excluding impairment charges and equity
    granted to third parties and employees 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 period to period and can vary widely across
    different industries or among companies within the same industry. The
    company also believes the exclusion of equity granted to third parties and
    employees 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 equity
    granted to third parties and employees 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 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 delivers more than 125 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 67 music channels available nationwide. SIRIUS also delivers 61 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 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, 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 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 the company's Annual Report on Form 10-K for the year ended December 31, 2005 filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on the company's operational results are: its dependence upon third parties, including manufacturers of SIRIUS radios, retailers, automakers and programming partners, its competitive position and any events which affect the useful life of its satellites.

    E-SIRI


    Contacts:

    Media                      Analysts
    Patrick Reilly             Paul Blalock
    SIRIUS                     SIRIUS
    212-901-6646               212-584-5174
    preilly@siriusradio.com    pblalock@siriusradio.com

                               Michelle McKinnon
                               SIRIUS
                               212-584-5285
                               mmckinnon@siriusradio.com


SOURCE SIRIUS Satellite Radio

media, Patrick Reilly, +1-212-901-6646, preilly@siriusradio.com, or analysts, Paul
Blalock, +1-212-584-5174, pblalock@siriusradio.com, or Michelle McKinnon,
+1-212-584-5285, mmckinnon@siriusradio.com, all for SIRIUS Satellite Radio
http://www.prnewswire.com

Copyright (C) 2006 PR Newswire. All rights reserved.

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