XM SATELLITE RADIO DEBUTS THE XM "CONNECT-AND-PLAY" TECHNOLOGY FOR HOME ENTERTAINMENT PRODUCTS

XM "Connect-and-Play" Allows For Low-Cost Integration Of XM Radio Service into Leading Entertainment Devices

Las Vegas, Nev. and Washington D.C., January 05, 2005 -- XM Satellite Radio (NASDAQ: XMSR), the nation's leading satellite radio company, with more than 3.2 million subscribers, today introduced the XM "Connect-and-Play," a revolutionary technology designed to integrate XM into a broad range of home entertainment devices.

The centerpieces of the technology are XM's "Connect-and-Play" chip and data-port, a low-cost, mini-serial bus connector (Mitsumi part CAM-C16). For a low relative incremental cost, manufacturers of popular consumer electronics products, such as stereo and home theater receivers, DVD players, table top radios and portable media players, can now add the XM "Connect-and-Play" chip and data-port, making their device instantly "XM-Ready". Through this new technology consumers simply plug an XM Connect-and-Play home antenna (MSRP: $49.99) into an XM-Ready audio product and activate the service to receive XM's 130-plus digital radio channels. No additional accessories or installation are required.

The Connect-and-Play antenna is similar in size and form factor to the current XM home antenna currently shipping with all of XM's "plug and play" and XM2go products. Utilizing XM's industry-leading chipset technology as well as a new proprietary chip and signaling protocol , the XM Connect-and-Play antenna is capable of receiving XM's satellite and terrestrial signals as well as channel tuning, decoding and audio transmission. It will be the only accessory needed to get XM through an XM-Ready audio system. The company plans to launch the XM Connect-and-Play antenna in March 2005. The first compatible XM-Ready products are planned to be available at retail at the same time. Additional XM-Ready products will be introduced throughout the year.

"Our manufacturing partners are thrilled with the Connect-and-Play platform," said Phil Whitworth, Director of Product Marketing for XM. "This standard connection provides consumer electronics manufacturers with a low-cost and rapid means to integrate XM functionality into a wide variety of products. Getting the XM service through an XM-Ready product will become one of the easiest ways to get XM in the home."

XM has developed alliances with major consumer electronics manufacturers who will be launching XM-Ready systems beginning in 2005, including: Eton, Pioneer, Denon, Harman Kardon, LG Electronics, Onkyo, Thomson/RCA, Polk Audio, Boston Acoustics, Orient Power, GPX, Crosley and others. With this swift and broad manufacturer acceptance, XM expects to see a large install base of XM-Ready products in U.S. households. The first XM Connect-and-Play products will be the Eton Porsche-Design Table-Top and Portable radios. These radios will be demonstrated throughout the 2005 International Consumer Electronics Show (CES) by XM Satellite Radio (CES Booth #4606) and Eton Corporation (CES Booth #30974).