XM Satellite Radio debuts
XM SATELLITE RADIO NEWS RELEASE
Posted: September 26, 2001

XM Satellite Radio on Tuesday officially launched the first U.S. digital satellite radio service -- "Radio to the Power of X" -- featuring 100 coast-to-coast, digital channels of music and information.

"What we are doing is launching a powerful new communications and entertainment medium -- what we call 'Radio to the Power of X,'" XM President and CEO Hugh Panero told a crowd of journalists, guests and XM staff gathered at the company's headquarters and 80-studio digital broadcast complex in Northeast Washington. "We have music channels to soothe your mind and information channels to fill it." The event featured a videolink to XM's lead markets in Dallas and San Diego, where customers at retail stores were buying some of the first XM radios.

XM's programming lineup features 71 music channels, more than 30 of them commercial-free; and 29 channels of sports, talk, children's and entertainment including 13 premiere news channels covering the latest national, world and financial developments like CNBC, CNN Headline News, CNNfn, FOX News, ABC News & Talk, USA Today, Bloomberg, BBC World Service, C-SPAN and its own XM News. People for the first time will be able to receive on the radio the diverse selection of 24-hour news sources that they're used to getting at home on cable and DirecTV.

As the digital countdown clock in XM's high-tech glass and chrome broadcast operations center hit zero, Panero pressed a button on the Star Trek-like command chair, launching XM's service. He then videolinked to Dallas and San Diego and spoke to some of XM's first customers.

XM had originally scheduled its commercial launch for Sept. 12 but postponed it following the tragic events in New York and Washington. "Today, like the federal government, the Congress and the stock market, business needs to get back to business," Panero said. "And that includes new businesses like ours."

XM announces accelerated launch of Southeast U.S. to mid-October
XM formally launched service Tuesday in its two lead markets, Dallas/Fort Worth and San Diego, covering 8 million people. XM had activated several hundred customers in those markets since postponing its original launch.

In three weeks, XM's rollout expands to the entire Southwest United States, including such major cities as Los Angeles, Denver and Houston; and to the entire Southeast, including Atlanta, Miami and New Orleans, covering a combined 136 million people. In November, XM expands across the rest of the country. XM had originally planned to launch the Southeast in the final phase of its national rollout, but was able to accelerate launch of that region into October.

XM offers array of music and news channels unprecedented on radio
XM extends the reach of America's most trusted and popular news and information channels to motorists everywhere across the United States, ensuring they are never out of touch with the latest news.

On the music end, Panero said, "XM is Mozart and Metallica -- Isaac Stern and Isaac Hayes -- Frank Sinatra and Frank Zappa -- Bob Marley and Bob Dylan -- Louis Armstrong and Lou Reed. XM is God Bless America. XM is Quincy Jones and Wynton Marsalis, who are part the XM 'Artists Family' and will create programming for us. We are about every artist, across every genre."

There has always been a unique relationship between technology, innovation and the distribution of music, news and information, Panero noted. "Remember 45s, remember vinyl record albums, remember the introduction of FM radio, the cassette, the Sony Walkman, the compact disc and cable TV with MTV? They all had dramatic impacts on music, bringing it to larger audiences in new and different ways. Remember when there were only three broadcast television networks? Soon people will say, 'Remember when there was only AM and FM?' And that leads us to XM Satellite Radio."

XM will transform radio, an industry that has seen little technological change since FM, almost 40 years ago. XM is offering its 100 channels of digital-quality, coast-to-coast sound for $9.99 a month. Leading manufacturers will offer 24 models of XM radios, a broad array including universal models that will easily enable any existing car stereo system to receive XM service, and new AM/FM/XM systems offering many other great features. Sony, Alpine and Pioneer XM radios are being distributed through major electronics retailers including Best Buy, Circuit City, Tweeter, participating RadioShack Dealers and Franchisees, Sears and Crutchfield. Delphi-Delco systems will roll out initially in Cadillac DeVille and Seville models beginning in November, expanding to more than 20 GM models next year.

XM won several awards at the 2001 International Consumer Electronics Show, including "Best of CES" in the automotive category. XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. XM has a distribution agreement with General Motors to integrate XM radios into its vehicles commencing in 2001.