XM Satellite Radio Announces $300 Million Common Stock Financing

XM Satellite Radio Announces $300 Million Common Stock Financing

WASHINGTON, June 9 /PRNewswire-FirstCall/ -- XM Satellite Radio Holdings Inc. (NASDAQ:XMSR) today announced that it has placed approximately 9.7 million shares of its Class A common stock in a public offering underwritten by UBS Securities LLC resulting in gross proceeds of approximately $300 million to the Company.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050724/XMSATLOGO )

The Company plans to use the proceeds for working capital and general corporate purposes, which may include launch payments for XM-4in mid to late 2006, construction payments for XM-5, payments for third-party programming, repayment of debt and other strategic initiatives.

The closing is expected to occur on Tuesday, June 14, subject to customary closing conditions.

All of the securities are being offered by the Company.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these shares nor shall there be any sale of these shares in any State in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such State. The information in this news release is forward-looking, and is subject to the risk that some or all of the proposed offering will not occur as planned. Copies of the prospectus relating to this offering may be obtained, when available, from UBS Securities LLC, 299 Park Avenue, New York, New York 10171, Attention: Equity Syndicate Desk

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.

Photo: http://www.newscom.com/cgi-bin/prnh/20050724/XMSATLOGO AP Archive: http://photoarchive.ap.org/ PRN Photo Desk, photodesk@prnewswire.com Source: XM Satellite Radio Holdings Inc.

CONTACT: Media Contact: Chance Patterson, +1-202-380-4318, chance.patterson@xmradio.com, Investor Contact: Gary Tiedemann, +1-202-380-4396, ir@xmradio.com, both of XM Satellite Radio

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

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