Space Systems/Loral to Build New XM-5 Satellite for XM Radio

Space Systems/Loral to Build New XM-5 Satellite for XM Radio

WASHINGTON and PALO ALTO, Calif., June 7 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ:XMSR), the nation's leading satellite radio provider with over four million subscribers, announced that it has awarded Space Systems/Loral (SS/L) a contract for the design and construction of its XM-5 satellite. XM's selection of SS/L followed an intense industry competition.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO )

Construction of XM-5 will be completed in 2007. XM-5 is intended as a ground spare for XM's in-orbit fleet. Boeing Satellite Systems has built XM's three in-orbit satellites (launched by Sea Launch). Boeing also is completing the construction of XM-4, which will be available for launch in 2006.

"With the selection of Space Systems/Loral, XM broadens its industry base to include two major satellite teams with the capability to continue to provide XM with the highest quality and most complete signal coverage in the satellite radio industry," said Hugh Panero, President and CEO of XM Satellite Radio.

About XM Satellite Radio

XM is America's number one satellite radio service with more than 4 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM's 2005 lineup includes more than 150 digital channels of choice from coast to coast: 67 commercial-free music channels, featuring hip hop to opera, classical to country, bluegrass to blues; 64 channels of premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM Satellite Radio is the satellite radio leader in sports programming, offering thousands of live sporting events every year. XM is the official satellite radio network for Major League Baseball, NASCAR, the Indy Racing League, the PGA TOUR, and the college sports conferences ACC, Pac-10, and Big Ten. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 120 different vehicle models for 2005. XM also is available in Avis, National, and Alamo rental cars. XM is the exclusive in-flight entertainment service for AirTran Airways, and will soon be available on JetBlue flights. Consumers can experience XM over the Internet through XM Radio Online at http://listen.xmradio.com/. Soon, XM and America Online will launch the world's largest combined digital radio network to be promoted to an audience of 100 million consumers online. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

About Space Systems/Loral

Space Systems/Loral, a subsidiary of Loral Space & Communications (BULLETIN BOARD: LRLSQ) , is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L satellites have amassed more than 1,200 years of reliable on-orbit service. SS/L is ISO 9001:2000 certified. For more information, visit http://www.ssloral.com/.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-4-05. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Ltd. or its representatives have made or may make forward- looking statements, orally or in writing, which may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2004, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO AP Archive: http://photoarchive.ap.org/ PRN Photo Desk photodesk@prnewswire.com Source: XM Satellite Radio

CONTACT: John McCarthy of Loral Space & Communications, +1-212-338-5345; or Chance Patterson of XM Satellite Radio, +1-202-380-4318

Web site: http://www.xmradio.com/ http://listen.xmradio.com/ http://www.ssloral.com/

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