XM Satellite Radio and Napster Partner to Launch 'XM + Napster' Integrated Music Service

XM Satellite Radio and Napster Partner to Launch 'XM + Napster' Integrated Music Service

LOS ANGELES and WASHINGTON, July 27 /PRNewswire-FirstCall/ -- Napster (NASDAQ:NAPS), the biggest brand in digital music, and XM Satellite Radio (NASDAQ:XMSR), the nation's leading satellite radio company, today announced a long-term, strategic partnership that will take the digital music experience to new heights with the integration of their satellite radio and online music services for listening online and on a variety of MP3 players.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050727/DCW009LOGOhttp://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO )

The collaboration will debut with the launch of "XM + Napster," the first online service to provide a single interface for accessing, purchasing, and managing music from XM and Napster. "XM + Napster" will be the exclusive, integrated service for digital music subscriptions and downloading for XM's 4.4 million-plus subscribers. XM subscribers will be able to dive deeper into the catalog of artists they enjoy and discover new music via "XM + Napster."

The co-branded "XM + Napster" service will be marketed by XM and Napster, and launched in the fourth quarter of 2005 in conjunction with the availability of new XM/MP3 players with XM's Connect and Play technology, which will give XM subscribers the ability to listen to XM's 150-plus channels of live programming on the player, in the car or at home, store songs in the player's memory, and mark the songs they like for future reference or online purchase.

When the XM/MP3 player is connected to a PC, the "XM + Napster" service will match the marked XM song titles with Napster's massive music catalog; available songs can be purchased individually for on-demand listening and transferred to the player for a completely portable experience. The "XM + Napster" service will also enable XM subscribers to manage their entire digital music collection in one location, giving them the freedom to create playlists that contain music from a variety of sources.

In addition, the "XM + Napster" service will allow XM subscribers who listen to XM Radio Online, the Internet radio service that offers more than 70 XM music channels, to listen to music they hear on XM and purchase music for transfer to a variety of compatible MP3 players.

"XM + Napster" lets XM subscribers enjoy unparalleled flexibility. XM Satellite Radio allows subscribers to discover new music and rediscover favorites, and the "XM + Napster" service gives them access to Napster's massive catalog for on-demand listening. XM subscribers can pay a monthly subscription fee for unlimited Napster tracks or they can purchase individual songs.

"The combination of the 'XM + Napster' service with new XM/MP3 players will provide XM subscribers with the ultimate 360-degree music experience," said Hugh Panero, XM president and CEO. "Today, XM subscribers can effortlessly discover and listen to any kind of music, and soon they will be able to effortlessly access, purchase, and manage their music with 'XM + Napster' and the new XM/MP3 players."

"Napster is excited to work with XM to create a cutting-edge product that merges the best of online and satellite music into one great, integrated experience," said Chris Gorog, Napster's chairman and CEO. "'XM + Napster' will be nirvana for passionate music fans."

About Napster

Napster, the biggest brand in digital music, is a subscription service that enables fans to freely sample the world's largest and most diverse online collection of music and move an unlimited amount of songs to compatible MP3 players. Napster (http://www.napster.com/) members have access to songs from all major labels and hundreds of independents and have more ways to discover, share and acquire new music and old favorites with community features like the ability to email tracks to friends and browse other members' collections. Napster also offers Napster Light, a "lighter" version of the service for those who just want to purchase songs and albums a la carte. Napster is currently available in the United States, Canada and the U.K. and is headquartered in Los Angeles with sales offices in New York, London and Frankfurt.

About XM Satellite Radio

XM is America's number one satellite radio service with more than 4.4 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: commercial-free music channels, premier sports, talk, comedy, children's and entertainment programming; and advanced traffic and weather information. 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's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

Safe Harbor Statement

The matters discussed in this press release include forward-looking statements that are subject to certain risks and uncertainties such as Napster's interoperability with third party devices, Napster's reliance on strategic partners, and the risks associated with product development, that could cause actual results to differ materially from those projected. Additional information on these and other factors are contained in Napster's reports filed with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K as filed with the SEC on June 13, 2005, copies of which are available at the website maintained by the SEC at http://www.sec.gov/. Napster assumes no obligation to update the forward- looking statements included in this press release.

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: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050727/DCW009LOGO 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; Napster

CONTACT: David Butler of XM Satellite Radio, +1-202-380-4317, david.butler@xmradio.com; or Dana Harris of Napster, +1-310-281-5073, dana.harris@napster.com

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

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