XM Satellite Radio Extends Lead With More Than 640,000 New Net Subscribers During Second Quarter of 2005

XM Satellite Radio Extends Lead With More Than 640,000 New Net Subscribers During Second Quarter of 2005

XM Subscriber Total Exceeds 4.4 Million as Outstanding Programming and Products Drive Subscriber Gains

WASHINGTON, July 1 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ:XMSR), the nation's leading provider of satellite radio, today announced it added more than 640,000 new net subscribers during the second quarter of 2005 for a total of more than 4.4 million subscribers. This subscriber gain represents a 53 percent increase in new net subscribers compared to the second quarter of 2004, when XM recorded 418,000 new net subscribers. Additionally, the 640,000 new net subscriber gain represents an 18 percent increase over the first quarter of 2005 when XM recorded 540,000 new net subscribers.

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

"This was the best second quarter in the history of XM. The momentum behind XM's subscriber growth is undeniable. In just one year, XM has more than doubled its subscriber base from 2.1 million in the second quarter of 2004 to over 4.4 million subscribers today," said Hugh Panero, President and CEO of XM Satellite Radio. "Millions of consumers are choosing XM because of our outstanding programming, including unprecedented coverage of Major League Baseball and the most commercial-free music in satellite radio, as well as strong support from our automotive partners and breakthrough products like our line of XM2go portable, hand-held radios."

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: 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/.

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/20000724/XMSATLOGO AP Archive: http://photoarchive.ap.org/ PRN Photo Desk photodesk@prnewswire.com Source: XM Satellite Radio

CONTACT: Media: Chance Patterson, +1-202-380-4318, chance.patterson@xmradio.com, or Investors: Gary Tiedemann, +1-202-380-4010, gary.tiedemann@xmradio.com, both of XM Satellite Radio

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

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