Sony to Team With XM Satellite Radio

6 January 2000
Sony to Team With XM Satellite Radio
    LAS VEGAS, Jan. 6 -- CES 2000 - Booth 19130 -- XM Satellite
Radio Inc. today announced that it has reached a preliminary
agreement which allows Sony Electronics Inc. to design, manufacture and market
XM-Ready(TM) audio products, including radios for the portable, home,
aftermarket and OEM car stereo markets.  The announcement was made by Hugh
Panero, President and CEO of XM Satellite Radio Inc., at the outset of the
Consumer Electronics Show in Las Vegas, Nevada.  Terms of the agreement were
not disclosed.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990810/DCTU023-b )
    "XM Radio(TM) is extremely honored to announce this agreement with Sony,
the world's most highly respected consumer electronics brand.  Sony's cutting-
edge product designs and market leadership in portable audio products,
combined with our innovative nationwide radio service, will help redefine the
consumer's radio listening experience," said Mr. Panero.
    XM Satellite Radio is developing a new band of radio, targeted to launch
in the first half of 2001.  XM Radio will create up to 100 channels of
digital-quality music, news, sports, talk and children's programming, which
will be uplinked to XM Radio's powerful satellites and transmitted directly to
vehicle, home and portable radios coast-to-coast for a monthly subscription
fee of $9.95.  XM-Ready radios will be available in retail outlets throughout
the US; and major automotive manufacturers will offer factory-installed XM-
Ready radios in new car models.
    "Sony is leading the portable digital audio revolution by facilitating the
expansion of exciting new technologies such as the XM Satellite Radio
service," said Fujio Nishida, President of Sony Electronics' Consumer Products
Marketing Group.  "We take great pride in making the most advanced
technologies easy to use, and look forward to bringing the benefits of XM
Satellite Radio's service directly to consumers in the not-too-distant
future."
    Headquartered in Park Ridge, NJ, Sony Electronics has more than 26,000
employees in manufacturing, engineering, customer service, sales and marketing
at more than 100 locations in the U.S. and Mexico. The company had revenues of
$10.6 billion in the fiscal year that ended March 31, 1999.
    In October 1999, XM Satellite Radio completed a successful
public offering on Nasdaq.  American Mobile Satellite Corporation
holds controlling interest in the company.  XM Radio's other
investors include industry leaders Clear Channel Communications Inc.; DIRECTV,
Inc., a unit of Hughes Electronics Corporation; the General Motors
Corporation; and a private investment group comprised of Columbia Capital,
Telcom Ventures L.L.C., and Madison Dearborn Partners, which together invested
$250 million in the company in July 1999.  XM Radio has entered into a 12-year
marketing and distribution agreement with General Motors to integrate XM-Ready
radios into its vehicles commencing in 2001.  XM Satellite Radio obtained one
of only 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 Radio's website: http://www.xmradio.com.

    Factors that could cause forward-looking statements (including projections
and business trends) in this document to differ materially from actual results
are detailed from time to time in XM Radio's filings with the Securities and
Exchange Commission.