XM SATELLITE RADIO SURPASSES 3.2 MILLION SUBSCRIBERS

XM Adds More Than 1.8 Million Net Additional Subscribers in 2004;
Expects to Reach 5.5 Million Subscribers in 2005

Las Vegas, Nev. and Washington D.C., January 05, 2005 -- XM Satellite Radio (NASDAQ: XMSR), the country's number-one satellite radio service, today announced it has signed up more than 3.2 million subscribers, representing more than 1.8 million net additional subscribers in the year 2004, extending its market leadership in satellite radio.

"In one year, more than 1.8 million new subscribers chose XM Satellite Radio for its compelling content and groundbreaking technology. XM delivered an outstanding performance in 2004 with a total of more than 3.2 million subscribers overall," said Hugh Panero, XM CEO and President. "During the fourth quarter of 2004, XM added more than 700,000 customers - our best quarter ever. More than 50,000 subscribers signed up for XM on Christmas Day, the biggest single day of activations in the history of the company. In 2005, with the addition of Major League Baseball and an exciting variety of new XM products, XM is well-positioned to expand its leadership position in satellite radio. By the end of this year, we expect to have 5.5 million subscribers, reflecting an increase of 2.3 million new subscribers during 2005."

Panero Says Total Satellite Radio Equipment Wholesale Revenue Hit $300 Million, Representing 3.5 Million Receivers Shipped; Shipments Expected to Double in 2005

New products and strong distribution were major factors in XM's retail success in 2004. XM's retail sales continue to show strong performance and will continue to play a key role in XM's future subscriber growth. Satellite radio has emerged as a major audio/video category for retailers. According to current figures released by the Consumer Electronics Association (CEA), factory-to-dealer shipments of satellite radio receivers alone totaled nearly 3.5 million units with approximately $300 million in wholesale revenue generated from receivers and accessories in 2004, representing a 249 percent increase in receivers shipped and a 145 percent increase in wholesale revenue over the previous year.

"I predict that satellite radio overall will double the number of receivers shipped to 7 million in 2005, and I believe that year-end satellite radio hardware sales could be a billion-dollar industry by 2006," Panero said.

Several ground-breaking XM radios were introduced during 2004, including the Delphi XM2go MyFi - the world's first truly portable satellite radio that delivers XM in the car, in the home and on the go - Delphi's SKYFi2 and Roady2 plug-and-play radios, Polk Audio's XM home tuner, and the Audiovox XR9 plug-and-play radio. XM products received thirteen 2005 Innovations Awards from CEA and the International Consumer Electronics Show (CES) for outstanding engineering and design.

XM Expands Leadership Position in New Car Market; Toyota Picks XM for Factory Installation of Satellite Radios

During 2004, XM continued to expand its lead in the new car market. General Motors (GM) recently announced that 1 million of its new car customers have become XM subscribers as the result of XM radios being factory-installed in new GM vehicles. GM will produce more than 1.1 million vehicles with XM for 2005 model year. Honda, another XM strategic partner, aggressively plans to double production of XM-equipped vehicles to 400,000 vehicles for the 2005 model year. XM also announced a long-term agreement with Toyota Motor Sales, USA to provide satellite-delivered data services for Toyota, Lexus, and Scion vehicles. In addition, Toyota will offer factory-installed XM radios in Toyota and Lexus vehicles in 2006, and expand the number of models offering XM as a dealer-installed option in 2004. XM is available in more than 120 different vehicle models for 2005.

XM Unveils Two New Portable XM2go Products from Pioneer and Tao

XM is expanding the XM2go line-up with new portable radios by Pioneer Electronics and Tao, a new brand from Giant International. The two units will be available at retailers this spring, following the huge success of the portable Delphi MyFi XM2go radio. XM2go is the first portable, hand-held satellite radio, offering two ways to listen to XM: a live mode and a time-shifting memory mode which allows the user to store and playback five hours of XM programming. More Details.

XM Introduces "XM Connect and Play" Technology for Home Entertainment Products

XM will be available in home entertainment products featuring the revolutionary "XM Connect-and-Play" technology, which offers a simple and cost-effective method for manufacturers and consumers alike to bring XM into the home. XM has developed alliances with leading consumer electronics manufacturers to launch XM-Ready products, such as home stereo receivers, table-top radios, and portable media systems, beginning in 2005. More Details.

Panasonic to Offer XM-Ready Car Stereo Head Units

Panasonic will offer thirteen models of XM-Ready car stereo head units this year, joining car stereo manufacturers with XM-Ready units such as Alpine, Pioneer, and Sony. XM will display a wide variety of car stereo products compatible with the XM Direct universal tuner box at the 2005 International CES. More Details.

XM NavTraffic To Be Available on Aftermarket Vehicle Navigation Systems

XM's award-winning XM NavTraffic service, the nation's first satellite traffic data service that delivers current traffic information to vehicle navigation systems, will be available in aftermarket navigation systems by Pioneer and Alpine. XM NavTraffic is currently available as a standard feature of the 2005 Acura RL, and will be available on the Cadillac CTS this year. More Details.

XM Expands Talk Radio Programming with Dr. Laura, G. Gordon Liddy, Fox Sports' Kevin Kennedy and Tony Korhnheiser

XM is expanding its stellar line-up of talk radio programming in February, when XM will begin carrying the highly-rated "Dr. Laura," hosted by best-selling author Dr. Laura Schlesinger, and an all-new show hosted by the outspoken political talk host G. Gordon Liddy. More Details.

XM will launch its exclusive, 24-hour Major League Baseball radio channel in February, featuring an XM-only program hosted by Fox baseball anchor Kevin Kennedy. XM will carry Major League Baseball games for every team in the league beginning in March. XM also will carry the new radio program hosted by Tony Kornheiser, the acclaimed sports writer and TV commentator who hosts ESPN's "Pardon the Interruption," beginning in February. More Details.