Sirius XM Radio (SIRI)

Guidance for 2005

The company raised its year-end subscriber guidance and reaffirmed its previous guidance on all other key guidance metrics for the full year 2005. After adding over one million new subscribers in the first nine months of the year, SIRIUS expects continued strong subscriber growth in the traditionally busy fourth quarter and raised its previous year-end 2005 target to over 3 million subscribers.

Average monthly churn is expected to be approximately 1.5% for full year 2005, in line with previous guidance, given continued high levels of customer satisfaction. The company continues to expect SAC per gross subscriber addition to be under $145 for the full-year 2005, with further declines expected in 2006.

SIRIUS expects to generate $230 million of total revenue and an adjusted loss from operations of approximately ($540) million in 2005. Total operating cash uses, capital expenditures and restricted investment activity are expected to be approximately ($375) million in 2005.

SIRIUS ended the third quarter of 2005 with approximately $934 million in cash, cash equivalents and marketable securities. SIRIUS’ first quarter of positive free cash flow could be reached as early as the fourth quarter of 2006, and the company continues to expect to generate positive free cash flow for the full-year 2007.

Conference Call Information:

SIRIUS will hold a conference call today at 8 am ET to discuss operating and financial results. The public, members of the investment community and the press will have live access to the conference call via the company’s website, www.sirius.com, and on the

Guidance for 2005:

Reflecting a strong first half of 2005 and the company’s expectation for continued strong subscriber growth in the second half, SIRIUS is raising subscriber guidance again to a year-end 2005 target of 3 million subscribers, up from approximately 2.7 million subscribers suggested by previous guidance.

Estimated average monthly churn is expected to be 1.5% for full year 2005 compared with previous guidance of 1.5% to 1.6%, given continued high levels of customer satisfaction. The company continues to expect SAC per gross subscriber addition to be under $145 for the full year 2005, with further declines expected in 2006.

SIRIUS expects to generate $225 million of total revenue in 2005, up from previous guidance of $215 million. The company expects to report an adjusted loss from

operations of approximately ($540) million in 2005 compared with previous guidance of ($510) million, reflecting the impact on total SAC of increased subscriber growth. Total operating cash uses, capital expenditures and restricted investment activity, are expected to be approximately ($375) million in 2005, in line with previous guidance.

SIRIUS ended the second quarter of 2005 with approximately $577 million in cash, cash equivalents and marketable securities, which the company continues to believe is sufficient to reach free cash flow breakeven under its current business plan. SIRIUS’ first quarter of positive free cash flow could be reached as early as the fourth quarter of 2006, further underscoring its expectations to generate positive free cash flow for the full year 2007.

Conference Call Information:

SIRIUS will hold a conference call today at 8 am ET to discuss operating and financial results. The public, members of the investment community and the press will have live access to the conference call via the company’s website, www.sirius.com, and on the SIRIUS service by tuning to SIRIUS Channel 127. A replay of the call will also be available on the SIRIUS website.

Guidance for 2005:

In view of a strong start to 2005, SIRIUS is raising guidance for 2005 net subscriber additions to 1.6 million, for a year-end 2005 subscriber target of over 2.7 million, up from over 2.5 million suggested by previous guidance. Estimated average monthly churn is expected to be in the range of 1.5% to 1.6% for 2005, ahead of the previous guidance of 1.6% to 1.7%, given the company’s year-to-date reported churn and expectation of continued high customer satisfaction through year-end. The company continues to expect SAC per gross subscriber addition to be below $145 for the full year 2005, with further declines expected in 2006.

Guidance for 2005:

In view of a strong start to 2005, SIRIUS is raising guidance for 2005 net subscriber additions to 1.4 million, implying a year-end 2005 subscriber target of over 2.5 million, up from approximately 2.3 million year-end 2005 subscribers suggested by previous guidance. Estimated average monthly churn is expected to be in the range of 1.6% to 1.7% during 2005. SAC per gross subscriber addition should also drop to below $145 for the year, with further declines expected in 2006.

SIRIUS expects to generate approximately $210 million of total revenue in 2005. The company expects to generate an adjusted loss from operations of approximately $(480) million in 2005. Total operating cash uses, capital expenditures and purchases of restricted investments, are expected to be approximately $(350) million in 2005, as compared to approximately $(452) million in 2004.

SIRIUS ended 2004 with approximately $759 million in cash, cash equivalents and marketable securities, which it believes is sufficient to reach cash flow breakeven under its current business plan.

Conference Call Information:

SIRIUS will hold a conference call today at 8am ET to discuss operating and financial results. The public, members of the investment community and the press will have live access to the conference call via the company’s website www.sirius.com and on the SIRIUS service by tuning to SIRIUS Channel [131]. A replay of the call will also be available on the SIRIUS website.