XM Exceeds Expectations

WASHINGTON, April 1-- XM Satellite Radio, America's leading satellite radio service, well exceeded most Wall Street analyst expectations for first quarter subscriber growth, ending with more than 76,000 total subscribers as of March 31, 2002. Described by the Yankee Group as the fastest-growing consumer electronics audio product of the last 20 years, XM more than doubled its subscribers in the first quarter.

``XM added over 48,000 subscribers in the first quarter, exceeding its target by 15%, outpacing most Wall Street analyst expectations,'' said XM President and CEO Hugh Panero. ``Our momentum continues with consumers, retailers and automakers alike recognizing XM as the hot new audio entertainment product of 2002.''

XM Also Anticipates Strong Auto Manufacturer-Driven Subscriber Growth

XM remains on track to end the year with 350,000 subscribers, Panero said. He noted that the majority of XM subscriber growth has come from consumer retail distribution, however he also expects significant growth from the automotive sector in the second half of the year, when XM will become available in a variety of new car models.

The company has made major inroads into the automotive sector. Beginning this fall, General Motors will offer XM on 23 models including the Buick, Chevrolet, GMC, Olds, and Pontiac car lines. GM already offers XM in Cadillac Devilles and Sevilles.

In addition, participating Isuzu dealers will also offer to install XM radios in Axiom and Rodeo models beginning in April 2002. Isuzu also has designed and developed a mounting kit that allows all Isuzu Axioms and all 1998 and newer Isuzu Rodeos to be easily retrofitted with a XM radio.

And just last week, Nissan announced that satellite radio systems will be available in select 2003 model Nissan and Infiniti division vehicles beginning later this year. Models include the Infiniti Q45 performance luxury sedan, the Infiniti G35, the Infiniti I35 luxury sedan along with the Nissan Pathfinder sport-utility vehicle and the Nissan Murano crossover SUV.

Finally, Volkswagen of America, Inc., which also encompasses Audi of America, announced it has signed distribution agreements to offer Volkswagen and Audi customers in the United States satellite radio services in coming years.

XM is transforming radio, an industry that has seen little technological change since FM, almost 40 years ago. XM's programming lineup features 100 coast-to-coast digital channels: 71 music channels, more than 30 of them commercial-free, from hip hop to opera, classical to country, bluegrass to blues; and 29 channels of sports, talk, children's and entertainment. XM also brings to the car, for the first time on radio, the same diverse selection of 24-hour news sources available in the home on cable and DIRECTV. General Motors in November rolled out factory-installed Delphi- Delco XM radios in Cadillac DeVille and Seville models, and will expand to a total of 23 Buick, Cadillac, Chevrolet, GMC, Olds and Pontiac models this year. Isuzu dealers will begin to offer XM radios to customers in April. XM radios are available at major electronics retailers nationwide including Best Buy, Circuit City, Tweeter, Ultimate Electronics, participating RadioShack Dealers and Franchisees, Crutchfield, Good Guys, CarToys, Audio Express and Sound Advice; and at independent retailers. Leading manufacturers such as Sony, Alpine and Pioneer offer a broad array of XM radios that easily enable any existing car stereo system. XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. For more information, please visit XM's web site: http://www.xmradio.com .

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include uncertainties associated with demand for the company's service, the company's dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 8-K filed with the Securities and Exchange Commission on 12-6-2001. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.

SOURCE: XM Satellite Radio