DaimlerChrysler to Invest $100 Million in Sirius Satellite Radio
1 February 2000
DaimlerChrysler to Invest $100 Million in Sirius Satellite Radio
Automaker to Install Satellite Receivers in Its Vehicle Lines
Including Heavy Trucks and Luxury Cars
AUBURN HILLS, Mich., Feb. 1 -- DaimlerChrysler and Sirius
Satellite Radio today announced an agreement to bring satellite radio to
DaimlerChrysler customers in the United States beginning next year.
Sirius Radio will provide DaimlerChrysler customers with seamless
coast-to-coast coverage of up to 100 channels of programming, including
50 channels of commercial-free music and up to 50 channels of news, sports and
entertainment for a monthly subscription fee of $9.95.
Under the terms of the agreement, DaimlerChrysler Corporation will
purchase $100 million of Sirius common stock and exclusively factory-install
Sirius receivers in DaimlerChrysler cars and light trucks.
The arrangement includes all DaimlerChrysler brands sold in the United
States, including Mercedes-Benz, Chrysler, Jeep(R), Dodge, Dodge Truck, as
well as Freightliner and Sterling heavy trucks.
DaimlerChrysler and Sirius will also work together to develop innovative
telematics functions using the Sirius national digital broadcasting system.
These applications may include a range of wireless security, convenience and
navigation services for DaimlerChrysler vehicle owners. This is a further
step in DaimlerChrysler's strategy to create and develop technologies to
better serve its customers.
DaimlerChrysler is North America's third largest auto manufacturer,
selling more than 4.8 million vehicles worldwide per year. Freightliner is
North America's largest heavy-duty truck manufacturer - and the first truck
manufacturer to agree to install satellite radios in commercial vehicles.
"We believe Sirius Radio has a superior system which will offer our
vehicle owners tailored, commercial-free broadcasts across the country," said
Jim Holden, President, DaimlerChrysler Corporation. "We see this arrangement
as part of DaimlerChrysler's ongoing strategy to expand our business beyond
the traditional automotive manufacturing and sale. This is all about
DaimlerChrysler bringing new value and services to our Chrysler, Jeep and
Dodge customers, and providing innovation in every area of their automotive
experience."
"Luxury car owners expect the most advanced performance, information and
entertainment technologies," added Ken Enders, Vice President of Marketing for
Mercedes-Benz USA, Inc. "We believe Sirius Radio will provide our
Mercedes-Benz clients with a revolution in audio information and
entertainment."
"It is crucial that our commercial vehicle customers have the most
advanced technologies and the best entertainment options for the long hours
spent on the road," said Jim Hebe, President & CEO of Freightliner
Corporation. "We expect this alliance to usher in a new era of
commercial-free music and innovative news, talk and entertainment radio
programming for motorists and truckers across the U.S."
"We're extremely pleased that one of the world's most respected automakers
has made this significant commitment to our technology, our service and our
company," said David Margolese, Sirius Chairman and Chief Executive. "We
believe this decision affirms the superiority of our proprietary transmission
technology and the power of our completely commercial-free music capability."
Sirius has alliances with eight leading automotive electronics
manufacturers to produce digital receivers for the automotive aftermarket and
for installation in new cars. These companies include Alpine, Audiovox,
Clarion, Delphi Delco Electronics, Kenwood, Panasonic, Recoton and Visteon.
Sirius Satellite Radio, http://www.siriusradio.com, is building a digital
satellite radio system that will broadcast music and entertainment programming
to motorists throughout the continental United States. The company has
created alliances with critically acclaimed artists and on-air personalities,
including Sting, Grandmaster Flash, and MC Lyte, who will have regularly
scheduled programs on Sirius.
Sirius has also announced agreements with some of the world's foremost
creators of compelling audio information and entertainment programming,
including CNBC, National Public Radio, USA Networks/SCI-FI Channel, Bloomberg
and the BBC. The company has the exclusive right to carry the nationally
acclaimed program "Car Talk" on satellite radio. Sirius expects to begin
broadcasting nationally at the end of the fourth quarter of 2000.
The Chrysler group is headquartered in Auburn Hills, MI, and represents
the brands Chrysler, Jeep, Dodge and Dodge Truck worldwide. Besting last
year's record, the Chrysler group set a new all-time sales record in 1999,
selling more than 3.2 million units.
Mercedes-Benz USA, a DaimlerChrysler company, is headquartered in
Montvale, NJ. Mercedes-Benz USA became the top-selling luxury car company in
the U.S. when it sold 189,437 vehicles in 1999, up 11 percent over last year's
all-time record.
Freightliner Corporation, headquartered in Portland, OR, is the leading
heavy truck manufacturer in North America. Freightliner produces and markets
Class 3-8 vehicles under the Freightliner, Sterling, American LaFrance and
Thomas Built Buses nameplates and is a DaimlerChrysler company, the world's
largest commercial vehicle manufacturer.
Any statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions, future events or performance with
respect to Sirius Satellite Radio Inc. are not historical facts and may be
forward-looking and, accordingly, such statements involve estimates,
assumptions and uncertainties which could cause actual results to differ
materially from those expressed in the forward-looking statements.
Accordingly, any such statements are qualified in their entirety by reference
to the factors discussed in Sirius Satellite Radio Inc.'s Annual Report on
Form 10-K for the year ended December 31, 1998, filed under the company's
former name, CD Radio Inc. Among the key factors that have a direct bearing
on Sirius Satellite Radio's results of operations are the potential risk of
delay in implementing Sirius Satellite Radio's business plan; increased costs
of construction and launch of necessary satellites; dependence on satellite
construction and launch contractors; dependence on Lucent Technologies; risk
of launch failure; unproven market and unproven applications of existing
technology; unavailability of Sirius Satellite Radio receivers; and Sirius
Satellite Radio's need for additional financing. Additional information
regarding the relationship between DaimlerChrysler and Sirius is available in
Sirius Satellite Radio's Current Report on form 8-K dated February 1, 2000.