Satellite Radio Chipset Finished...Look Out Local Radio And CD's

                 ST Microelectronics to Commence Fabrication

    WASHINGTON, Feb. 9 XM Satellite Radio Inc.,
, announced the completion of its production chipset design and
ST Microelectronics, the chipset manufacturer, has commenced fabrication to
make the components available to radio manufacturers by the end of March,
ensuring mass production of XM ready radios for its Summer 2001 commercial
launch.

    Last month, at the Consumer Electronics Show (CES) in Las Vegas, XM
unveiled a full product line of XM-Ready radios representing 24 different
models from six different manufacturers including Pioneer, Sony, Alpine,
Delphi-Delco Electronics, Blaupunkt and Clarion.  In addition, XM won the
"Best of CES" award for the automotive category and the XM Sony "plug and
play" device won the "CES Innovation 2001 Award" as well as the Popular
Mechanics "Top 15 CES Products Award".

    The XM-Ready radios unveiled at CES were based on the XM first pass chip
design for its two custom chips.  Radio manufacturers will be able to simply
replace the prototype chips with the production chips expected by the end of
March.

    XM also recently announced agreements with Visteon and Panasonic to
design, develop and market XM-Ready radios for factory installation in new car
and trucks

                XM will "Rock" Instead of "Roll" on March 18th

    XM's first satellite launch has been rescheduled to March 18th from the
Sea Launch platform.  XM has two fully built Boeing 702 satellites (called XM
"Rock" and "Roll") and a ground spare all provided by Boeing Satellite Systems
(BSS).  XM "Rock" will launch first and is scheduled for delivery to Sea
Launch Home Port by Monday.

    In January, the launch of XM satellite "Roll" was halted only seconds
before liftoff, necessitating a return to Home Port.  Since XM satellite
"Rock" recently completed its normal manufacturing, testing and processing
activities, BSS and XM decided, consistent with conservative mission launch
standards, to launch "Rock" in place of "Roll" on March 18th.  Both satellites
are in good condition and the company expects to launch "Roll" in early May.
    
Commenting on the announcements, Hugh Panero, XM President & CEO said,
"Our production chips are in fabrication and both satellites are built and
ready to go.  It just goes to show you, that you should always Rock before you
Roll."

    XM will create and package up to 100 channels of digital quality music,
news, sports, talk, comedy and children's programming for a monthly
subscription fee of $9.95.  XM will provide seamless, coast-to-coast coverage.
The service and XM-Ready radios will be available through consumer electronics
retailers representing over 2,200 retail outlets including Best Buy, Circuit
City and Sears.  XM also has a long-term distribution agreement with General
Motors and Saab to integrate XM-Ready radios into their vehicles.  XM's
strategic investors include America's leading car, radio and satellite TV
companies -- General Motors, Clear Channel Communications, DIRECTV as well as
American Honda Motor Co. Inc and Motient Corporation .  Beyond
AM, Beyond FM ... now there's XM.  For more information, please visit XM's