Gulf States Toyota to Offer XM Satellite Radio As an Option at All 141 Dealerships

WASHINGTON, July 2 Gulf States Toyota, one of the nation's top Toyota distributors, will offer XM Satellite Radio, the nation's leading satellite radio service, as a dealer-installed option on all vehicles sold at its 141 dealerships beginning July 17.

"We're delighted that Gulf States will offer XM to its customers, to meet their demand for the next generation of radio," XM Vice President Dan Murphy said today. "Toyota stands for high quality, value and cutting-edge technology, and XM's 100 amazing channels of digital-quality, coast-to-coast radio will fit right in."

Gulf States is one of two independent Toyota distributors with exclusive rights to distribute Toyota vehicles in the five-state region of Texas, Oklahoma, Arkansas, Louisiana and Mississippi.

AMI Auto World Magazine named XM as one of the best new car options in its "Best of 2002" issue. XM was named "Product of the Year" by Fortune, an "Invention of the Year" by Time and won Popular Science's 2001 "Best of What's New" Grand Award in the electronics category. XM won several awards at the 2001 CES, including "Best of CES" in the automotive category.

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, many 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.

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 25 Buick, Cadillac, Chevrolet, GMC, Olds and Pontiac models this year. Isuzu dealers now offer XM radios to buyers of their Axiom and Rodeo models. XM will be available as an option this coming fall on six Infiniti and Nissan 2003 models as well a future Audi and Volkswagen models. XM radios are available at major electronics retailers nationwide. 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 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 4-8-2002. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.