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XM Radio and Motorola Sign Technology Agreement

12 October 1999

XM Radio and Motorola Sign Technology Agreement Allowing Motorola to Design, Develop, Produce and Market XM-Capable Receivers for the Automotive Market    

    WASHINGTON, Oct. 12 -- XM Satellite Radio
announced today that it has signed an agreement with Motorola to
license the technology for XM's new band of radio, allowing Motorola to
design, develop, produce and market XM-capable receivers.  A leading supplier
of integrated electronic systems to automobile manufacturers, Motorola
currently provides integrated electronics solutions to General Motors, Ford,
DaimlerChrysler, BMW and Nissan, among others.  Motorola's automotive packages
include wireless communications, global positioning system and cellular
handset technology.  The announcement was made by Hugh Panero, President and
CEO of XM Satellite Radio.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990810/DCTU023-b )
    XM will create and package up to 100 channels of digital-quality music,
news, sports, talk and children's programming at its Washington, DC, broadcast
facility.  The service will then be uplinked to XM's powerful satellites and
transmitted directly down to vehicle, home and portable radios across the
country.  With an XM-capable radio and a small antenna, listeners everywhere
in the continental United States will be able to enjoy their favorite XM
channels.
    Motorola is a global leader in providing integrated communications
solutions and embedded electronic solutions.  Sales in 1998 were $29.4
billion.  Motorola's Integrated Electronics Systems Sector (IESS), a division
of Motorola, Inc., is a leading provider of electronic systems for customers
who integrate them into their products.  The five businesses of IESS deliver
high value embedded electronic solutions that enable customers to
differentiate their products and lead their markets.
    XM Satellite Radio is developing a new band of radio.  The
system will use direct satellite-to-receiver broadcasting technology to
provide listeners in their cars and at home with crystal-clear sound
seamlessly from coast to coast. The subscription service is scheduled to start
during the first half of 2001 for $9.95 a month.  XM will offer a broad
selection of listening choices created by its XM Originals programming unit
and by premier content providers, including USA TODAY, the BBC World Service,
Black Entertainment Television, the Hispanic Broadcasting Corporation
(formerly Heftel), Bloomberg News Radio, C-SPAN Radio, CNN/Financial Network,
CNN/Sports Illustrated, The Weather Channel, One-On-One Sports and many
others.
    XM is partnering with industry leaders to build its service.  Alpine,
Delphi Delco, Pioneer and Sharp are among the consumer electronic firms that
will design, manufacture and market AM/FM/XM radios.  General Motors has
signed a long-term agreement to factory-install and market XM service in new
GM vehicles. It is also expected that agreements will be signed with other
leading automakers.  Hughes and Alcatel are building XM's satellites, the most
powerful commercial satellites available.
    American Mobile Satellite Corporation holds controlling
interest in the company, whose other investors include industry leaders Clear
Channel Communications Inc.; DIRECTV, Inc., a unit of Hughes Electronics
Corporation; the General Motors Corporation; Liberty Media Corporation, and a
private investment group comprised of Columbia Capital, Telcom Ventures
L.L.C., and Madison Dearborn Partners, which together recently invested $250
million in the company.  XM Satellite Radio obtained one of two satellite
digital audio radio service (SDARS) licenses from the Federal Communications
Commission in October 1997.  First there was AM, then FM and soon ... XM
Satellite Radio. For more information, please visit XM's new website:
http://www.xmradio.com.
     Factors that could cause forward-looking statements in this document to
differ materially from actual results are discussed in XM's Registration
Statement on Form S-1 (No.333-38619) filed with the Securities and Exchange
Commission on July 23, 1999 and declared effective on October 4, 1999.