quarter of 2006. The adjusted net loss per share, or net loss per share excluding stock-based compensation, was ($0.10) per share for the fourth quarter of 2007 as compared to an adjusted net loss per share of ($0.14) per share for the fourth quarter of 2006 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

YEAR ENDED DECEMBER 31, 2007 VERSUS YEAR ENDED DECEMBER 31, 2006

For the year ended December 31, 2007, SIRIUS recognized total revenue of $922.1 million compared with $637.2 million for the year ended December 31, 2006. This 44.7%, or $284.9 million, increase in revenue was primarily driven by a $279.5 million increase in subscriber revenue resulting from the net increase in subscribers of 2,297,230 during 2007.

The company’s adjusted loss from operations decreased ($185.7) million to ($327.4) million for the year ended December 31, 2007 from ($513.1) million for the year ended December 31, 2006 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by a 44.7%, or $284.9 million, increase in total revenue which more than offset the 8.6%, or $99.1 million, increase in expenses.

Satellite and transmission expenses decreased $13.5 million to $25.7 million for the year ended December 31, 2007 from $39.2 million for the year ended December 31, 2006 as a result of sales of certain satellite parts and lower maintenance and utility expense in the fourth quarter 2007. In addition, the 2006 expenses include a $10.9 million non-recurring impairment charge associated with certain satellite long-lead time parts that were no longer needed.

Programming and content expenses increased $27.7 million to $226.4 million for the year ended December 31, 2007 from $198.7 million for the year ended December 31, 2006. The increase was primarily attributable to license fees associated with new programming agreements, including NASCAR, and compensation-related costs.

Revenue share and royalties increased $76.8 million, or 109.9%, to $146.7 million for the year ended December 31, 2007 from $69.9 million for the year ended December 31, 2006. This increase was primarily attributable to the determination of the royalty rate under the statutory license covering the performance of sound recordings. The 2007 royalty rate of 6% of gross revenue resulted in royalty expense of approximately $48.1 million, of which approximately $25.9 million was recorded in the fourth quarter. The growth in the company’s revenues and increase in the company’s OEM subscriber base also contributed to the increase.

Customer service and billing expenses increased $17.4 million to $93.1 million for the year ended December 31, 2007 from $75.7 million for the year ended December 31, 2006. The increase was primarily attributable to higher call center operating costs and higher credit card fees necessary to accommodate the increase in the company’s subscriber base. Customer service and billing expenses per average subscriber per month declined 19.7% to $1.10 for the year ended December 31, 2007 from $1.37 for the year ended December 31, 2006.

Sales and marketing expenses decreased $26.1 million to $158.0 million for the year ended December 31, 2007 from $184.1 million for the year ended December 31, 2006. This decrease was primarily attributable to lower consumer marketing and advertising

and reduced cooperative marketing spend with the company’s distributors offset by higher compensation-related costs.

Subscriber acquisition costs decreased $14.9 million to $404.8 million for the year ended December 31, 2007 from $419.7 million for the year ended December 31, 2006. This decrease was primarily attributable to lower chipset subsidies and commission costs offset by higher OEM hardware subsidies and a higher mix of OEM gross additions.

SAC per gross subscriber addition decreased 11.4% to $101 for the year ended December 31, 2007 from $114 for the year ended December 31, 2006. The improvement was driven by lower product costs offset by a higher mix of OEM gross additions.

General and administrative expenses increased $31.5 million to $111.5 million for the year ended December 31, 2007 from $80.0 million for the year ended December 31, 2006. The increase was primarily a result of higher legal fees and compensation-related costs.

Engineering, design and development expenses decreased $20.9 million to $37.8 million for the year ended December 31, 2007 from $58.7 million for the year ended December 31, 2006. This decrease was primarily attributable to reduced OEM tooling and manufacturing upgrades associated with the factory installation of SIRIUS radios in additional vehicle models offset by higher compensation-related costs.

SIRIUS reported a net loss of ($565.3) million, or ($0.39) per share, for the year ended December 31, 2007, including a ($0.05) per share impact from stock-based compensation, compared with a net loss of ($1.1) billion, or ($0.79) per share, for the year ended December 31, 2006, including a ($0.01) per share impact from the impairment loss and ($0.31) per share impact from stock-based compensation. The adjusted net loss per share, or net loss per share excluding stock-based compensation, was ($0.34) for the year ended December 31, 2007 compared with an adjusted net loss per share excluding the impairment loss and stock based compensation of ($0.47) for the year ended December 31, 2006 (refer to the reconciliation table of net loss per share to adjusted net loss per share).

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, unless otherwise stated)
(Unaudited)

Subscribers Data:
		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Beginning subscribers			7,667,476			5,119,308			6,024,555			3,316,560
Net additions			654,309			905,247			2,297,230			2,707,995
Ending subscribers			8,321,785			6,024,555			8,321,785			6,024,555
Retail			4,640,709			4,041,826			4,640,709			4,041,826
OEM			3,665,632			1,959,009			3,665,632			1,959,009
Hertz			15,444			23,720			15,444			23,720
Ending subscribers			8,321,785			6,024,555			8,321,785			6,024,555
Addtions
Retail			211,962			559,312			598,883			1,576,463
OEM			444,244			348,935			1,706,623			1,135,316
Hertz			(1,897	)		(3,000	)		(8,276	)		(3,784	)
Net addtions			654,309			905,247			2,297,230			2,707,995

Metrics:

		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Gross subscriber additions			1,194,014			1,234,576			4,183,901			3,758,163
Deactivated subscribers			539,705			329,329			1,886,671			1,050,168
Average monthly churn (1)(6)			2.3	%		2.0	%		2.2	%		1.9	%
SAC per gross subscriber addition (3)(6)		$	90		$	103		$	101		$	114
Customer service and billing expenses per average subscriber(3)(6)		$	1.23		$	1.60		$	1.10		$	1.37
Total revenue		$	249,816		$	193,380		$	922,066		$	637,235
Free cash flow (4)(6)		$	75,921		$	30,409		$	(218,624	)	$	(500,715	)
Monthly ARPU:
Average monthly subscriber revenue per subscriber before the effects of Hertz subscribers and rebates		$	10.19		$	10.48		$	10.24		$	10.63
Effects of Hertz subscribers			0.04			0.05			0.05			0.05
Effects of rebates			(0.59	)		(0.14	)		(0.23	)		(0.23	)
Average monthly subscriber revenue per subscriber			9.64			10.39			10.06			10.45
Average monthly net advertising revenue per subscriber			0.41			0.53			0.40			0.56
ARPU		$	10.05		$	10.92		$	10.46		$	11.01

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED
(Dollars in thousands, unless otherwise stated)
(Unaudited)

Adjusted Loss from Operations:
		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Net loss		$	(166,223	)	$	(245,597	)	$	(565,252	)	$	(1,104,867	)
Impairment loss			—			—			—			10,917
Depreciation			27,638			27,495			106,780			105,749
Stock-based compensation			14,896			42,625			78,900			437,918
Other income and expense			15,699			8,512			49,727			35,078
Income tax expense			770			156			2,435			2,065
Adjusted loss from operations(7)		$	(107,220	)	$	(166,809	)	$	(327,410	)	$	(513,140	)
Adjusted Net Loss and Adjusted Net Loss per Share:
		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Net loss		$	(166,223	)	$	(245,597	)	$	(565,252	)	$	(1,104,867	)
Impairment loss			—			—			—			10,917
Stock-based compensation			14,896			42,625			78,900			437,918
Adjusted net loss		$	(151,327	)	$	(202,972	)	$	(486,352	)	$	(656,032	)
Net loss per share (basic and diluted)		$	(0.11	)	$	(0.17	)	$	(0.39	)	$	(0.79	)
Impairment loss			—			—			—			0.01
Stock-based compensation			0.01			0.03			0.05			0.31
Adjusted net loss per share (basic and diluted)(8)		$	(0.10	)	$	(0.14	)	$	(0.34	)	$	(0.47	)
Weighted average common shares outstanding (basic and diluted)			1,468,210			1,413,866			1,462,967			1,402,619

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED
(Dollars in thousands, unless otherwise stated)

Condensed Consolidated Statements of Operations:

		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Total revenue		$	249,816		$	193,380		$	922,066		$	637,235
Operating expenses (excludes depreciation and stock-based compensation shown separately below):
Satellite and transmission			4,811			7,152			25,709			39,229
Programming and content			59,949			55,779			226,416			198,650
Revenue share and royalties			56,762			21,062			146,715			69,918
Customer service and billing			29,123			25,745			93,109			75,650
Cost of equipment			19,070			22,105			45,458			35,233
Sales and marketing			53,143			73,115			157,965			184,139
Subscriber acquisition costs			99,906			121,046			404,799			419,716
General and administrative			26,951			21,398			111,546			80,025
Engineering, design and development			7,321			12,787			37,759			58,732
Depreciation			27,638			27,495			106,780			105,749
Stock-based compensation			14,896			42,625			78,900			437,918
Total operating expenses			399,570			430,309			1,435,156			1,704,959
Loss from operations			(149,754	)		(236,929	)		(513,090	)		(1,067,724	)
Other expense			(15,699	)		(8,512	)		(49,727	)		(35,078	)
Loss before income taxes			(165,453	)		(245,441	)		(562,817	)		(1,102,802	)
Income tax expense			(770	)		(156	)		(2,435	)		(2,065	)
Net loss		$	(166,223	)	$	(245,597	)	$	(565,252	)	$	(1,104,867	)

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)

		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Revenue:
Subscriber revenue, including effects of rebates		$	227,658		$	167,210		$	854,933		$	575,404
Advertising revenue, net of agency fees			9,770			8,451			34,192			31,044
Equipment revenue, net of discounts and rebates			12,065			16,431			29,281			26,798
Other revenue			323			1,288			3,660			3,989
Total revenue			249,816			193,380			922,066			637,235
Operating expenses (excludes depreciation shown separately below) (1):
Cost of services:
Satellite and transmission			5,175			7,518			27,907			41,797
Programming and content			62,735			80,414			236,059			520,424
Revenue share and royalties			56,762			21,062			146,715			69,918
Customer service and billing			29,288			25,912			93,817			76,462
Cost of equipment			19,070			22,105			45,458			35,233
Sales and marketing			53,682			77,780			173,572			203,682
Subscriber acquisition costs			100,062			122,196			407,642			451,614
General and administrative			37,212			32,379			155,863			129,953
Engineering, design and development			7,946			13,448			41,343			70,127
Depreciation			27,638			27,495			106,780			105,749
Total operating expenses			399,570			430,309			1,435,156			1,704,959
Loss from operations			(149,754	)		(236,929	)		(513,090	)		(1,067,724	)
Other income (expense):
Interest and investment income			4,171			6,760			20,570			33,320
Interest expense, net of amounts capitalized			(19,887	)		(15,327	)		(70,328	)		(64,032	)
Loss from redemption of debt			—			—			—			—
Equity in net loss of affiliate			—			—			—			(4,445	)
Other income			17			55			31			79
Total other income (expense)			(15,699	)		(8,512	)		(49,727	)		(35,078	)
Loss before income taxes			(165,453	)		(245,441	)		(562,817	)		(1,102,802	)
Income tax expense			(770	)		(156	)		(2,435	)		(2,065	)
Net loss		$	(166,223	)	$	(245,597	)	$	(565,252	)	$	(1,104,867	)
Net loss per share (basic and diluted)		$	(0.11	)	$	(0.17	)	$	(0.39	)	$	(0.79	)
Weighted average common shares outstanding (basic and diluted)			1,468,210			1,413,866			1,462,967			1,402,619
(1) Amounts related to stock-based compensation included in other operating expenses were as follows:
Satellite and transmission		$	364		$	366		$	2,198		$	2,568
Programming and content			2,786			24,635			9,643			321,774
Customer service and billing			165			167			708			812
Sales and marketing			539			4,665			15,607			19,543
Subscriber acquisition costs			156			1,150			2,843			31,898
General and administrative			10,261			10,981			44,317			49,928
Engineering, design and development			625			661			3,584			11,395
Total equity granted to third parties and employees		$	14,896		$	42,625		$	78,900		$	437,918

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
BALANCE SHEET DATA
(Dollars in thousands)

		As of
		December 31, 2007			December 31, 2006
Cash, cash equivalents and marketable securities		$	439,289		$	408,921
Restricted investments			53,000			77,850
Working capital			(394,989	)		(257,799	)
Total assets			1,694,149			1,658,528
Long-term debt			1,278,617			1,068,249
Total liabilities			2,486,886			2,047,599
Accumulated deficit			(4,398,972	)		(3,833,720	)
Stockholders’ deficit			(792,737	)		(389,071	)

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SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended December 31,						For the Years Ended December 31,
		2007			2006			2007			2006
Cash flows from operating activities:
Net loss		$	(166,223	)		(245,597	)	$	(565,252	)	$	(1,104,867	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			27,638			27,495			106,780			105,749
Non-cash interest expense			1,817			775			4,269			3,107
Provision for doubtful accounts			2,339			1,826			9,002			9,370
Non-cash equity in net loss of affiliate			—			—			—			4,445
Gain/(Loss) on disposal of assets			(520	)		772			(428	)		1,661
Impairment loss			—			—			—			10,917
Stock-based compensation			14,896			42,625			78,900			437,918
Deferred income taxes			770			156			2,435			2,065
Changes in operating assets and liabilities:
Accounts receivable			(22,254	)		(8,724	)		(28,881	)		(1,871	)
Inventory			7,498			10,477			4,965			(20,246	)
Receivables from distributors			(4,147	)		(28,146	)		(13,179	)		(20,312	)
Prepaid expenses and other current assets			(3,112	)		31			11,459			(42,367	)
Other long-term assets			(205	)		2,343			12,109			(19,331	)
Accounts payable and accrued expenses			129,257			102,299			66,169			26,366
Accrued interest			7,820			11,699			(8,920	)		1,239
Deferred revenue			93,102			105,334			169,905			181,003
Other long-term liabilities			1,142			11,503			1,901			3,452
Net cash (used in) provided by operating activities			89,818			34,868			(148,766	)		(421,702	)
Cash flows from investing activities:
Additions to property and equipment			(7,377	)		(5,459	)		(65,264	)		(92,674	)
Sales of property and equipment			525			4			641			127
Merger related costs			(6,680	)		—			(29,444	)		—
Purchases of restricted and other investments			—			—			(310	)		(12,339	)
Release of restricted investments			160			1,000			25,160			26,000
Purchases of available-for-sale securities			—			(5,000	)		—			(123,500	)
Sales of available-for-sale securities			4,189			28,375			15,031			229,715
Net cash (used in) provided by investing activities			(9,183	)		18,920			(54,186	)		27,329
Cash flows from financing activities:
Long term borrowings, net of related costs			(320	)		—			244,879			—
Repayment of long term borrowings			(625	)		—			(625	)		—
Proceeds from exercise of stock options			1,420			21,757			4,097			25,787
Net cash provided by financing activities			475			21,757			248,351			25,787
Net increase (decrease) in cash and cash equivalents			81,110			75,545			45,399			(368,586	)
Cash and cash equivalents at the beginning of period			357,710			317,876			393,421			762,007
Cash and cash equivalents at the end of period		$	438,820		$	393,421		$	438,820		$	393,421

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FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES

This press release, including the selected financial information above, includes the following non-GAAP financial measures: average monthly churn; SAC per gross subscriber addition; customer service and billing expenses per average subscriber; free cash flow; average monthly revenue per subscriber, or ARPU; adjusted loss from operations; adjusted net loss; and adjusted net loss per share. The definitions and usefulness of such non-GAAP financial measures are as follows (dollars in thousands, unless otherwise stated):

	(1)	SIRIUS defines average monthly churn as the number of deactivated subscribers divided by average quarterly subscribers.
	(2)	SIRIUS defines SAC per gross subscriber addition as subscriber acquisition costs, excluding stock-based compensation, and margins from the direct sale of SIRIUS radios and accessories divided by the number of gross subscriber additions for the period. SAC per gross subscriber addition is calculated as follows:

			For the Three Months Ended December 31,						For the Years Ended December 31,
			2007			2006			2007			2006
	Subscriber acquisition costs		$	100,062		$	122,196		$	407,642		$	451,614
	Less: stock-based compensation			(156	)		(1,150	)		(2,843	)		(31,898	)
	Add: margin from direct sales of SIRIUS radios and accessories			7,005			5,674			16,177			8,435
	SAC		$	106,911		$	126,720		$	420,976		$	428,151
	Gross subscriber additions			1,194,014			1,234,576			4,183,901			3,758,163
	SAC per gross subscriber addition		$	90		$	103		$	101		$	114

	(3)	SIRIUS defines customer service and billing expenses per average subscriber as total customer service and billing expenses, excluding stock-based compensation, divided by the daily weighted average number of subscribers for the period. Customer service and billing expenses per average subscriber is calculated as follows:

			For the Three Months Ended December 31,						For the Years Ended December 31,
			2007			2006			2007			2006
	Customer service and billing expenses		$	29,288		$	25,912		$	93,817		$	76,462
	Less: stock-based compensation			(165	)		(167	)		(708	)		(812	)
	Customer service and billing expenses, as adjusted		$	29,123		$	25,745		$	93,109		$	75,650
	Daily weighted average number of subscribers			7,878,574			5,361,322			7,082,927			4,591,693
	Customer service and billing expenses, as adjusted, per average subscriber		$	1.23		$	1.60		$	1.10		$	1.37

	(4)	SIRIUS defines free cash flow as cash flow from operating activities, capital expenditures, merger related costs and restricted and other investment activity. Free cash flow is calculated as follows:

			For the Three Months Ended December 31,						For the Years Ended December 31,
			2007			2006			2007			2006
	Net cash used in operating activities		$	89,818		$	34,868		$	(148,766	)	$	(421,702	)
	Additions to property and equipment			(7,377	)		(5,459	)		(65,264	)		(92,674	)
	Merger related costs			(6,680	)		—			(29,444	)		—
	Restricted and other investment activity			160			1,000			24,850			13,661
	Free cash flow		$	75,921		$	30,409		$	(218,624	)	$	(500,715	)

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	(5)	SIRIUS defines ARPU as the total earned subscriber revenue and net advertising revenue divided by the daily weighted average number of subscribers for the period. ARPU is calculated as follows:

			For the Three Months Ended December 31,						For the Years Ended December 31,
			2007			2006			2007			2006
	Subscriber revenue		$	227,658		$	167,210		$	854,933		$	575,404
	Net advertising revenue			9,770			8,451			34,192			31,044
	Total subscriber and net advertising revenue		$	237,428		$	175,661		$	889,125		$	606,448
	Daily weighted average number of subscribers			7,878,574			5,361,322			7,082,927			4,591,693
	ARPU		$	10.05		$	10.92		$	10.46		$	11.01

	(6)	SIRIUS believes average monthly churn; SAC per gross subscriber addition; customer service and billing expenses per average subscriber; free cash flow; and ARPU provide meaningful information regarding operating performance and liquidity and are used for internal management purposes; when publicly providing the business outlook; as a means to evaluate period-to-period comparisons; and to compare the company’s performance to that of its competitors. SIRIUS also believes that investors use current and projected metrics to monitor performance of the business and make investment decisions.
		SIRIUS believes the exclusion of stock-based compensation expense in the calculations of SAC per gross subscriber addition and customer service and billing expenses per average subscriber is useful given the significant variation in expense that can result from changes in the fair market value of SIRIUS common stock, the effect of which is unrelated to the operational conditions that give rise to variations in the components of subscriber acquisition costs and customer service and billing expenses. Specifically, the exclusion of stock-based compensation expense in the calculation of SAC per gross subscriber addition is critical in being able to understand the economic impact of the direct costs incurred to acquire a subscriber and the effect over time as economies of scale are reached.
		These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation for, or superior to measures of financial performance prepared in accordance with GAAP.
	(7)	SIRIUS refers to net loss before taxes; other income (expense) – including interest and investment income, interest expense, equity in net loss of affiliate; depreciation; impairment charges; and stock-based compensation expense as adjusted loss from operations. Adjusted loss from operations is not a measure of financial performance under GAAP. The company believes adjusted loss from operations is a useful measure of its operating performance. The company uses adjusted loss from operations for budgetary and planning purposes; to assess the relative profitability and on-going performance of consolidated operations; to compare performance from period to period; and to compare performance to that of its competitors. The company also believes adjusted loss from operations is useful to investors to compare operating performance to the performance of other communications, entertainment and media companies. The company believes that investors use current and projected adjusted loss from operations to estimate the current or prospective enterprise value and make investment decisions.
		Because the company funds and builds-out its satellite radio system through the periodic raising and expenditure of large amounts of capital, results of operations reflect significant charges for interest and depreciation expense. The company believes adjusted loss from operations provides useful information about the operating performance of the business apart from the costs associated with the capital structure and physical plant. The exclusion of interest expense and depreciation is useful given fluctuations in interest rates and significant variation in depreciation expense that can result from the amount and timing of capital expenditures and potential variations in estimated useful lives, all of which can vary widely across different industries or among companies within the same industry. The company believes the exclusion of taxes is appropriate for comparability purposes as the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate. The company also believes the exclusion of stock-based compensation expense is useful given the significant variation in expense that can result from changes in the fair market value of the company’s common stock. Finally, the company believes that the exclusion of equity in net loss of affiliate (SIRIUS Canada, Inc.) is useful to assess the performance of its core consolidated operations in the continental United States. To compensate for the exclusion of taxes, other income (expense), depreciation, impairment charges and stock-based compensation expense, the company separately measures and budgets for these items.
		There are material limitations associated with the use of adjusted loss from operations in evaluating the company compared with net loss, which reflects overall financial performance, including the effects of taxes, other income (expense), depreciation, impairment charges and stock-based compensation expense. The company uses adjusted loss from operations to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Investors that wish to compare and evaluate the operating results after giving effect for these costs, should refer to net loss as disclosed in the unaudited consolidated statements of operations. Since adjusted loss from operations is a non-GAAP financial measure, the calculation of adjusted loss from operations may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance in accordance with GAAP.

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	(8)	SIRIUS refers to adjusted net loss and adjusted net loss per share as net loss per share excluding impairment charges and stock-based compensation expense. Adjusted net loss and adjusted net loss per share are not measures of financial performance under GAAP. The company believes adjusted net loss and adjusted net loss per share are useful to investors to compare its operating performance to the performance of other communications, entertainment and media companies. The company believes the exclusion of impairment charges is appropriate for comparability purposes as the existence, amount and timing of impairment charges can vary from period to period and can vary widely across different industries or among companies within the same industry. The company also believes the exclusion of stock-based compensation expense is useful given the significant variation in expense that can result from changes in the fair market value of the company’s common stock.
		There are material limitations associated with the use of adjusted net loss and adjusted net loss per share in evaluating the company compared with net loss and net loss per share, which reflects overall financial performance, including the effects of impairment charges and stock-based compensation expense. The company uses adjusted net loss and adjusted net loss per share to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Investors that wish to compare and evaluate the operating results after giving effect for these costs, should refer to net loss and net loss per share as disclosed in the unaudited consolidated financial statements of operations. Since adjusted net loss and adjusted net loss per share are non-GAAP financial measures, the calculation of adjusted net loss and adjusted net loss per share may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP.

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About SIRIUS

SIRIUS, “The Best Radio on Radio,” delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR, NBA, and broadcasts live play-by-play games of the NFL, NBA, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is an Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV^TM is the first ever live in-vehicle rear seat entertainment featuring three channels of children’s programming, including Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of $6.99 plus applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available at shop.sirius.com and in more than 20,000 retail locations, including Best Buy, Circuit City, Crutchfield, Target, Wal-Mart, Sam’s Club and RadioShack.

As of December 31, 2007, SIRIUS radios were available as a factory and dealer-installed option in 116 vehicle models and as a dealer only-installed option in 37 vehicle models.

SIRIUS has agreements with Aston Martin, Audi, Bentley, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Kia, Land Rover, Lincoln, Maybach, Mazda, Mercedes-Benz, Mercury, MINI, Mitsubishi, Rolls-Royce, Volvo, and Volkswagen to offer SIRIUS radios as factory or dealer-installed equipment in their vehicles. SIRIUS has relationships with Toyota and Scion to offer SIRIUS radios as dealer-installed equipment, and a relationship with Subaru to offer SIRIUS radios as factory or dealer-installed equipment. SIRIUS radios are also offered to renters of Hertz vehicles at airport locations nationwide.

Click on www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

          This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings and the timing thereof, future financial and operating results, the combined company’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of SIRIUS’ and XM’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of SIRIUS and XM. Actual results may differ materially from the results anticipated in these forward-looking statements.

          The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statement: general business and economic conditions; the performance of financial markets and interest rates; the ability to obtain governmental approvals of the transaction on a timely basis; the failure to realize synergies and cost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XM may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and operating costs and business disruption following the merger, including adverse effects on employee retention and on our business relationships with third parties, including manufacturers of radios, retailers, automakers and programming providers. Additional factors that could cause SIRIUS’ and XM’s results to differ materially from those described in the forward-looking statements can be found in SIRIUS’ and XM’s Annual Reports on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007, and September 30, 2007, which are filed with the Securities and Exchange Commission (the “SEC”) and available at the SEC’s Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and SIRIUS disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

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CONTACT INFORMATION FOR INVESTORS AND FINANCIAL MEDIA:

Paul Blalock
SIRIUS
212.584.5174
pblalock@siriusradio.com

Hooper Stevens
SIRIUS
212.901.6718
hstevens@siriusradio.com

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