XM and SIRIUS Confirm Discussions to Settle FCC Enforcement Matters

Thu Jul 24, 2008 8:30am EDT

* Reuters is not responsible for the content in this press release.

WASHINGTON and NEW YORK, July 24 /PRNewswire-FirstCall/ -- XM Satellite
Radio Holdings Inc. (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI)
today confirmed that the companies are in discussions with the Enforcement
Bureau of the Federal Communications Commission to settle outstanding
enforcement matters.
    As previously disclosed by the companies, in 2006, the FCC commenced
investigations regarding the compliance of certain radios that include FM
transmitters with the Commission's rules, and the compliance of certain
terrestrial repeaters with the special temporary authority granted by the
Commission.  The companies hope to enter into a Consent Decree with the
Federal Communications Commission terminating these inquiries.
    As part of a possible Consent Decree, the companies expect to agree, among
other things, to:
    --  adopt comprehensive compliance plans, and take steps to address any
potentially non-compliant radios remaining in the hands of consumers;
    --  in the case of XM, within 60 days of the order adopting the Consent
Decree, shut down 50 variant terrestrial repeaters, and shut down or bring
into compliance an additional 50 variant terrestrial repeaters;
    --  in the case of SIRIUS, bring into compliance or shut down up to 11
variant terrestrial repeaters within 60 days of the order adopting the Consent
Decree.  These terrestrial repeaters were shut off by SIRIUS in October 2006;
and
    --  make a voluntary contributions to the United States Treasury of
approximately $17 million in the case of XM, and approximately $2 million in
the case of SIRIUS.
    There can be no assurances regarding the ultimate outcome of these
enforcement proceedings, including whether the FCC will approve Consent
Decrees under discussion with the companies.
    About SIRIUS
    SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the
best programming in all of radio.  SIRIUS is the original and only home of
100% commercial free music channels in satellite radio, offering 69 music
channels.  SIRIUS also delivers 65 channels of sports, news, talk,
entertainment, traffic, weather and data.  SIRIUS is the Official Satellite
Radio Partner of the NFL, NASCAR, and broadcasts live play-by-play games of
the NFL, as well as live NASCAR races.  All SIRIUS programming is available
for a monthly subscription fee of only $12.95.
    SIRIUS Internet Radio (SIR) is an Internet-only version of the SIRIUS
radio service, without the use of a radio, for the monthly subscription fee of
$12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and
100% commercial free music.
    SIRIUS Backseat TV (TM) is the first ever live in-vehicle rear seat
entertainment featuring three channels of children's programming, including
Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of
$6.99 plus applicable audio subscription fee.
    SIRIUS products for the car, truck, home, RV and boat are available at
shop.sirius.com and in more than 20,000 retail locations, including Best Buy,
Circuit City, Crutchfield, Target, Wal-Mart, Sam's Club and RadioShack.
    As of December 31, 2007, SIRIUS radios were available as a factory and
dealer-installed option in 116 vehicle models and as a dealer only-installed
option in 37 vehicle models.
    SIRIUS has agreements with Aston Martin, Audi, Automobili Lamborghini,
Bentley, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Kia, Land Rover, Lincoln,
Maybach, Mazda, Mercedes-Benz, Mercury, MINI, Mitsubishi, Rolls-Royce, Volvo,
and Volkswagen to offer SIRIUS radios as factory or dealer-installed equipment
in their vehicles.  SIRIUS has relationships with Toyota and Scion to offer
SIRIUS radios as dealer-installed equipment, and a relationship with Subaru to
offer SIRIUS radios as factory or dealer-installed equipment.  SIRIUS radios
are also offered to renters of Hertz vehicles at airport locations nationwide.
    Click on www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS
radio and subscription.
    About XM
    XM (Nasdaq: XMSR) is America's number one satellite radio company with
more than 9.6 million subscribers.  Broadcasting live daily from studios in
Washington, DC, New York City, Chicago, Nashville, Toronto and Montreal, XM's
2008 lineup includes more than 170 digital channels of choice from coast to
coast: commercial-free music, premier sports, news, talk radio, comedy,
children's and entertainment programming; and the most advanced traffic and
weather information.
    XM, the leader in satellite-delivered entertainment and data services for
the automobile market through partnerships with General Motors, Honda,
Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140
different vehicle models for 2008.  XM's industry-leading products are
available at consumer electronics retailers nationwide.  XM programming is
also available through XM Radio Online; as downloads of original XM shows via
podcasts from XM's Web site or the Apple's iTunes Store; and as streams of
commercial-free XM music channels to AT&T and Alltel wireless customers
through XM Radio Mobile.  For more information about XM hardware, programming
and partnerships, please visit http://www.xmradio.com/.
    This communication contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.  Such
statements include, but are not limited to, statements about the benefits of
the business combination transaction involving Sirius Satellite Radio Inc. and
XM Satellite Radio Holdings Inc., including potential synergies and cost
savings and the timing thereof, future financial and operating results, the
combined company's plans, objectives, expectations and intentions with respect
to future operations, products and services; and other statements identified
by words such as "anticipate," "believe," "plan," "estimate," "expect,"
"intend," "will," "should," "may," or words of similar meaning.  Such forward-
looking statements are based upon the current beliefs and expectations of
SIRIUS' and XM's management and are inherently subject to significant
business, economic and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond the control of SIRIUS and
XM.  Actual results may differ materially from the results anticipated in
these forward-looking statements.
    The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
forward-looking statement: general business and economic conditions; the
performance of financial markets and interest rates; the ability to obtain
governmental approvals of the transaction on a timely basis; the failure to
realize synergies and cost-savings from the transaction or delay in
realization thereof; the businesses of SIRIUS and XM may not be combined
successfully, or such combination may take longer, be more difficult, time-
consuming or costly to accomplish than expected; and operating costs and
business disruption following the merger, including adverse effects on
employee retention and on our business relationships with third parties,
including manufacturers of radios, retailers, automakers and programming
providers.  Additional factors that could cause SIRIUS' and XM's results to
differ materially from those described in the forward-looking statements can
be found in SIRIUS' and XM's Annual Reports on Form 10-K for the year ended
December 31, 2007, which are filed with the Securities and Exchange Commission
(the "SEC") and available at the SEC's Internet site (http://www.sec.gov).
The information set forth herein speaks only as of the date hereof, and SIRIUS
and XM disclaim any intention or obligation to update any forward looking
statements as a result of developments occurring after the date of this
communication.
    G-SIRI
SOURCE  XM Satellite Radio Holdings Inc.; SIRIUS Satellite Radio

Media Relations for SIRIUS, Patrick Reilly, +1-212-901-6646, or
PReilly@siriusradio.com, or Kelly Sullivan of Joele Frank, Wilkinson Brimmer
Katcher, +1-212-355-4449, or ksullivan@joelefrank.com; Investor Relations for
SIRIUS, Paul Blalock, +1-212-584-5174, or PBlalock@siriusradio.com, or Hooper
Stevens, +1-212-901-6718, or HStevens@siriusradio.com; Media Relations for XM,
Nathaniel Brown, +1-212-708-6170, or Nathaniel.Brown@xmradio.com, or Chance
Patterson, +1-202-380-4318, or Chance.Patterson@xmradio.com; Investor
Relations for XM, Joe Wilkinson, +1-202-380-4008, or
Joe.Wilkinson@xmradio.com, or Richard Sloane, +1-202-380-1439, or
richard.sloane@xmradio.com
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.