Panasonic to Offer Thirteen XM-Ready Car Stereo Head Units in 2005

LAS VEGAS and WASHINGTON, Jan. 5, 2005 -- XM Satellite Radio , the nation's leading provider of satellite radio with more than 3.2 million subscribers, announced today that Panasonic, one of the world's leading car stereo manufacturers, will offer thirteen models of XM- Ready car stereo head units in 2005.

"We at XM are thrilled that thirteen 2005 Panasonic car stereo head units will have XM functionality and branding, which we believe will add significant value to an outstanding line of products," said Rocco Tricarico, Director of Product Marketing and Distribution for XM Satellite Radio.

These car stereo units are the first Panasonic models to offer XM Satellite Radio capability and the first to interface with the XM Direct universal tuner box without the need of smart cables. XM provides more than 130 digital radio channels of commercial-free music and premier talk programming from coast to coast.

"Panasonic is very pleased to be able to offer this exciting entertainment option to its valued customers," said Rob Lopez, Group Manager for Panasonic Mobile Electronics Group. "The addition of XM Ready to many of our mobile audio and video products is sure to prove a winning combination."

For 2005, all Panasonic mobile in-dash CD models with a $149 MSRP and higher and the new in-dash monitor with DVD player, model CQ-VD7001U, and the new DVD receiver, model CQ-D5501U will be XM-Ready. The Panasonic models compatible with XM will be branded with the XM logo. Panasonic plans to deliver XM satellite-capable radios beginning in January 2005.

The XM-Ready radios by Panasonic will be able to receive local AM and FM stations in addition to the satellite broadcasts.

In addition to Panasonic, a wide variety of car stereo manufacturers will offer XM-compatible units in 2005, including Audiovox, Audiobahn, Jensen, Dual, and Pyle via the XM Direct universal tuner box. XM Direct adaptors are currently available for car stereo units by Sony, Pioneer, Alpine, and Kenwood.

About XM Satellite Radio

XM Satellite Radio is America's number one satellite radio service with more than 3.2 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM's 2005 lineup includes more than 130 digital channels of choice from coast to coast: 68 one-hundred-percent commercial-free music channels, featuring critically-acclaimed original programming, concerts, and diverse musical genres ranging from hip hop to opera, classical to country, bluegrass to blues; more than 40 channels of premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards. Popular Science recently chose XM products for two prestigious "Best of What's New 2004" Awards. As the Official Satellite Radio Network for Major League Baseball (MLB) and the Exclusive Satellite Radio Service for NASCAR, as well as the Official Satellite Radio Service for ACC, PAC-10 and Big-10 collegiate football and basketball, XM Satellite Radio is the industry leader in sports radio programming, offering thousands of live sporting events each year.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Nissan and Volkswagen/Audi, is available in more than 120 different vehicle models for 2005. XM also is available in Avis, National, and Alamo rental cars, and will soon be available on JetBlue and AirTran Airways. Consumers can experience XM over the Internet through XM Radio Online at http://listen.xmradio.com/. For more information about XM hardware, programming and partnerships, please visit 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 XM Satellite Radio's service, XM's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-15-04. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.