Sirius XM Radio (SIRI)

Increasing Momentum in the Automotive OEM Channel

SIRIUS nearly doubled its OEM subscriber base during the nine months of 2006, reflecting increasing momentum from its exclusive automotive OEM arrangements. SIRIUS is currently available as a factory installed option or standard feature in virtually all Chrysler, Jeep, Dodge, Mercedes-Benz, Maybach, BMW, Volkswagen, Audi, and Rolls-Royce vehicle lines. SIRIUS expects a significant increase in the overall factory installation rate with the Chrysler Group, up from just over 30% in the 2006 model year to 40% in the 2007 model year. The Ford Motor Company remains on track to offer SIRIUS as a factory installed option in 21 vehicle lines in the Ford, Lincoln and Mercury brands by early calendar year 2007, up from four models at the beginning of 2006 and 16 models at the end of third quarter 2006. Mercedes-Benz is currently factory installing SIRIUS in approximately two-thirds of its model year 2007 vehicles, ahead of its previously stated target of 50%.

During the third quarter of 2006, Audi and Volkswagen launched their previously announced exclusive factory programs with SIRIUS. Mitsubishi announced that it would begin offering SIRIUS as a standard feature or factory option on four models in fall 2006, and throughout its entire U.S. Mitsubishi line in the 2008 model year. Volvo announced that it will offer SIRIUS as a factory installed option in the Volvo S40, Volvo V50, Volvo C70 and all-new Volvo S80 vehicle lines during the 2007 model year.