Sirius XM Radio (SIRI)

YEAR ENDED DECEMBER 31, 2007 VERSUS YEAR ENDED DECEMBER 31, 2006

For the year ended December 31, 2007, SIRIUS recognized total revenue of $922.1 million compared with $637.2 million for the year ended December 31, 2006. This 44.7%, or $284.9 million, increase in revenue was primarily driven by a $279.5 million increase in subscriber revenue resulting from the net increase in subscribers of 2,297,230 during 2007.

The company’s adjusted loss from operations decreased ($185.7) million to ($327.4) million for the year ended December 31, 2007 from ($513.1) million for the year ended December 31, 2006 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by a 44.7%, or $284.9 million, increase in total revenue which more than offset the 8.6%, or $99.1 million, increase in expenses.

Satellite and transmission expenses decreased $13.5 million to $25.7 million for the year ended December 31, 2007 from $39.2 million for the year ended December 31, 2006 as a result of sales of certain satellite parts and lower maintenance and utility expense in the fourth quarter 2007. In addition, the 2006 expenses include a $10.9 million non-recurring impairment charge associated with certain satellite long-lead time parts that were no longer needed.

Programming and content expenses increased $27.7 million to $226.4 million for the year ended December 31, 2007 from $198.7 million for the year ended December 31, 2006. The increase was primarily attributable to license fees associated with new programming agreements, including NASCAR, and compensation-related costs.

Revenue share and royalties increased $76.8 million, or 109.9%, to $146.7 million for the year ended December 31, 2007 from $69.9 million for the year ended December 31, 2006. This increase was primarily attributable to the determination of the royalty rate under the statutory license covering the performance of sound recordings. The 2007 royalty rate of 6% of gross revenue resulted in royalty expense of approximately $48.1 million, of which approximately $25.9 million was recorded in the fourth quarter. The growth in the company’s revenues and increase in the company’s OEM subscriber base also contributed to the increase.

Customer service and billing expenses increased $17.4 million to $93.1 million for the year ended December 31, 2007 from $75.7 million for the year ended December 31, 2006. The increase was primarily attributable to higher call center operating costs and higher credit card fees necessary to accommodate the increase in the company’s subscriber base. Customer service and billing expenses per average subscriber per month declined 19.7% to $1.10 for the year ended December 31, 2007 from $1.37 for the year ended December 31, 2006.

Sales and marketing expenses decreased $26.1 million to $158.0 million for the year ended December 31, 2007 from $184.1 million for the year ended December 31, 2006. This decrease was primarily attributable to lower consumer marketing and advertising

and reduced cooperative marketing spend with the company’s distributors offset by higher compensation-related costs.

Subscriber acquisition costs decreased $14.9 million to $404.8 million for the year ended December 31, 2007 from $419.7 million for the year ended December 31, 2006. This decrease was primarily attributable to lower chipset subsidies and commission costs offset by higher OEM hardware subsidies and a higher mix of OEM gross additions.

SAC per gross subscriber addition decreased 11.4% to $101 for the year ended December 31, 2007 from $114 for the year ended December 31, 2006. The improvement was driven by lower product costs offset by a higher mix of OEM gross additions.

General and administrative expenses increased $31.5 million to $111.5 million for the year ended December 31, 2007 from $80.0 million for the year ended December 31, 2006. The increase was primarily a result of higher legal fees and compensation-related costs.

Engineering, design and development expenses decreased $20.9 million to $37.8 million for the year ended December 31, 2007 from $58.7 million for the year ended December 31, 2006. This decrease was primarily attributable to reduced OEM tooling and manufacturing upgrades associated with the factory installation of SIRIUS radios in additional vehicle models offset by higher compensation-related costs.

SIRIUS reported a net loss of ($565.3) million, or ($0.39) per share, for the year ended December 31, 2007, including a ($0.05) per share impact from stock-based compensation, compared with a net loss of ($1.1) billion, or ($0.79) per share, for the year ended December 31, 2006, including a ($0.01) per share impact from the impairment loss and ($0.31) per share impact from stock-based compensation. The adjusted net loss per share, or net loss per share excluding stock-based compensation, was ($0.34) for the year ended December 31, 2007 compared with an adjusted net loss per share excluding the impairment loss and stock based compensation of ($0.47) for the year ended December 31, 2006 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

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NINE MONTHS ENDED SEPTEMBER 30, 2007 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 2006

For the nine months ended September 30, 2007, SIRIUS recognized total revenue of $672.3 million compared with $443.9 million for the nine months ended September 30, 2006. This 51.5%, or $228.4 million, increase in revenue was primarily driven by a $219.1 million increase in subscriber revenue resulting from the net increase in subscribers of 2,548,168 from the end of the third quarter 2006.

The company’s adjusted loss from operations decreased ($126.1) million to ($220.2) million for the nine months ended September 30, 2007 from ($346.3) million for the nine months ended September 30, 2006 (refer to the reconciliation table of net loss to adjusted loss from operations). This

SIX MONTHS ENDED JUNE 30, 2007 VERSUS SIX MONTHS ENDED JUNE 30, 2006

For the six months ended June 30, 2007, SIRIUS recognized total revenue of $430.5 million compared with $276.7 million for the six months ended June 30, 2006. This 56%, or $153.8 million, increase in revenue was primarily driven by a $147.6 million increase in subscriber revenue resulting from the net increase in subscribers of 2,464,331 from the end of the second quarter 2006.

The company’s adjusted loss from operations decreased ($99.9) million to ($163.3) million for the six months ended June 30, 2007 from ($263.2) million for the six months ended June 30, 2006 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by a

56%, or $153.8 million, increase in total revenue which more than offset the 10%, or $53.8 million, increase in expenses.

Satellite and transmission expenses decreased $11.0 million to $14.0 million for the six months ended June 30, 2007 from $25.0 million for the six months ended June 30, 2006. Second quarter 2006 expenses included a $10.9 million non-recurring impairment charge associated with certain satellite long-lead time parts that were no longer needed.

Programming and content expenses increased $15.4 million to $110.2 million for the six months ended June 30, 2007 from $94.8 million for the six months ended June 30, 2006. The increase was primarily attributable to license fees associated with new programming agreements.

Revenue share and royalties increased $26.5 million to $57.0 million for six months ended June 30, 2007 from $30.5 million for six months ended June 30, 2006. The increase was primarily attributable to the growth in the company’s revenues and an increase in the mix of the company’s OEM subscriber base.

Customer service and billing expenses increased $9.8 million to $43.1 million for the six months ended June 30, 2007 from $33.3 million for the six months ended June 30, 2006. The increase was primarily attributable to higher call center operating costs necessary to accommodate the increase in the company’s subscriber base. Customer service and billing expenses per average subscriber per month declined 19% to $1.10 for the six months ended June 30, 2007 from $1.36 for the six months ended June 30, 2006.

Sales and marketing expenses decreased $4.7 million to $75.3 million for the six months ended June 30, 2007 from $80.0 million for the six months ended June 30, 2006. This decrease was primarily attributable to lower consumer advertising and reduced cooperative marketing spend with the company’s distributors.

Subscriber acquisition costs decreased $13.9 million to $203.9 million for the six months ended June 30, 2007 from $217.8 million for the six months ended June 30, 2006 despite an 11% increase in gross subscriber additions. This decrease was primarily attributable to lower aftermarket subsidies, offset by increased OEM hardware subsidies due to higher production volume.

SAC per gross subscriber addition decreased 13% to $106 for the six months ended June 30, 2007 from $122 for the six months ended June 30, 2006 primarily due to lower OEM costs per unit offset by a higher mix of OEM gross additions.

General and administrative expenses increased $13.7 million to $50.7 million for the six months ended June 30, 2007 from $37.0 million for the six months ended June 30, 2006. The increase was primarily a result of higher legal fees and compensation-related costs to support the growth of the business.

Engineering, design and development expenses decreased $3.8 million to $21.7 million for the six months ended June 30, 2007 from $25.5 million for the six months ended June 30, 2006. This decrease was primarily attributable to reduced initial OEM tooling and manufacturing upgrades associated with the factory installation of SIRIUS radios in additional vehicle models.

SIRIUS reported a net loss of ($278.9) million, or ($0.19) per share, for the six months ended June 30, 2007, including a ($0.03) per share impact from stock-based compensation, compared with a net loss of ($696.4) million, or ($0.50) per share, for the six months ended June 30, 2006, including a ($0.01) per share impact from the impairment loss and ($0.25) per share impact from stock-based compensation. The adjusted net loss per share, or net loss per share excluding stock-based

compensation, was ($0.16) for the six months ended June 30, 2007 compared with an adjusted net loss per share excluding the impairment loss and stock based compensation of ($0.24) for the six months ended June 30, 2006 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

FIRST QUARTER 2007 VERSUS FIRST QUARTER 2006

For the first quarter of 2007, SIRIUS recognized total revenue of $204.0 million compared to $126.7 million for the first quarter of 2006. This 61%, or $77.3 million, increase in revenue was driven by a $75.6 million increase in subscriber revenue resulting from the net increase in subscribers of 2,503,298, or 61%, from March 31, 2006 to March 31, 2007.

The company’s adjusted loss from operations decreased $52.7 million to ($84.0) million for the first quarter of 2007 from ($136.7) million for the first quarter of 2006 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by the increase in total revenue of $77.3 million, which more than offset a $24.7 million increase in operating expenses.