Exhibit 99.1 100 STREAMS OF SATELLITE RADIO [LOGO OF SIRIUS RADIO] - -------------------------------------------------------------------------------- SIRIUS ANNOUNCES SECOND QUARTER 2003 FINANCIAL AND OPERATING RESULTS Subscriptions reached 105,186, an Increase of 55% in Last Quarter NEW YORK - August 6, 2003 - SIRIUS (NASDAQ: SIRI), known for delivering the very best in commercial-free music and premium audio entertainment, today announced its second quarter 2003 financial and operating results. The company previously announced a major milestone during the quarter, when it reached 100,000 subscribers on June 20. SIRIUS ended the second quarter on June 30, 2003 with 105,186 subscribers, an increase of 55% during the quarter. "This continued growth in SIRIUS subscribers confirms that we are getting traction in the marketplace, and that our commercial-free music programming is gaining a wider audience," said Joseph P. Clayton, President and CEO of SIRIUS. "We were able to reach our subscriber target even without the benefit of the new transportable products. Now that these `Plug & Play' receivers are becoming more available in retail stores, we expect the pace to pick up even more." During the second quarter, SIRIUS completed two major financing transactions which eliminated the company's previously stated funding gap, and added approximately $357 million in cash, giving the company added financial flexibility. "I am excited to have joined SIRIUS at such a pivotal time in its history," said David Frear, SIRIUS' new Executive Vice President and Chief Financial Officer. "In less than four months, SIRIUS has transformed itself to a company that is fully-funded with $560 million in cash. With very little debt, our balance sheet is clearly the strongest in this new and exciting industry." In recent weeks, SIRIUS introduced its transportable "Plug & Play" products in the retail marketplace. These products from Kenwood and Audiovox are now flowing into stores, and that volume will continue to increase in the coming months. SIRIUS also recently announced several new initiatives in the specialty markets sector, including agreements with Avionics Innovations, Formula Boats and Winnebago. SECOND QUARTER 2003 VERSUS SECOND QUARTER 2002 For the second quarter of 2003, SIRIUS recognized total revenue of $2.1 million, compared to $70 thousand for the second quarter of 2002. SIRIUS reported a loss from operations of $(109.8) million for the second quarter of 2003, compared to a loss from operations of $(89.9) million for the second quarter of 2002. SIRIUS' EBITDA loss for the second quarter of 2003 was $(86.3) million, compared with $(67.8) million in the second quarter of 2002. The EBITDA loss for the second quarter of 2003 included a $14.5 million non-cash charge associated with the disposal of SIRIUS' previous subscriber management system. SIRIUS reported a net loss applicable to common stockholders of $(111.8) million, or $(0.12) per share, for the second quarter of 2003, compared with a net loss applicable to common stockholders of $(124.6) million, or $(1.62) per share, for the second quarter of 2002. For the second quarter of 2003, average monthly revenue per subscriber, or ARPU, was $7.91. Excluding the costs of mail-in rebate programs, ARPU for the second quarter of 2003 was $10.84. FIRST HALF 2003 VERSUS FIRST HALF 2002 For the first half of 2003 SIRIUS recognized total revenue of $3.7 million, compared to $103 thousand for the first half of 2002. SIRIUS reported a loss from operations of $(208.9) million for the first half of 2003, compared to a loss from operations of $(140.6) million for the first half of 2002. SIRIUS' adjusted EBITDA loss for the first half of 2003 was $(161.4) million, compared with $(104.0) million in the first half of 2002. SIRIUS' adjusted EBITDA loss for the first half of 2003 excludes a $256.5 million gain in connection with the completion of the company's restructuring in March 2003, and includes a $14.5 million non-cash charge associated with the disposal of SIRIUS' previous subscriber management system. SIRIUS reported a net loss applicable to common stockholders of $(60.0) million, or $(0.09) per share, for the first half of 2003, compared with a net loss applicable to common stockholders of $(214.7) million, or $(2.85) per share, for the first half of 2002. Included in net income applicable to common stockholders for the first half of 2003 was a $256.5 million gain in connection with the completion of the company's restructuring in March 2003, and a deemed dividend of $79.5 million associated with the elimination of its convertible preferred stock in March 2003. For the first half of 2003, ARPU was $8.94. Excluding the costs of mail-in rebate programs, ARPU for the first half of 2003 was $10.85. (Selected Balance Sheet Data and Statement of Operations follow). SIRIUS defines adjusted EBITDA loss as net loss before interest and investment income, interest expense, depreciation expense and debt restructuring. This definition of adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States. We have raised and invested large amounts of capital to fund the completion of our system; as a result, our results of operations include significant charges for depreciation and interest expense. In addition, we have recognized a gain associated with the restructuring of our debt. -2- Adjusted EBITDA, which excludes these items, provides a basis to measure our operating performance, apart from the expenses associated with our physical plant or capital structure. Adjusted EBITDA should not be considered in isolation or as a substitute for operating loss, cash flow from operating activities or other measures of performance defined by accounting principles generally accepted in the United States. A reconciliation of adjusted EBITDA loss is presented on the attachment. SIRIUS defines average monthly revenue per subscriber, or ARPU, as the total earned subscription revenue and activation revenue during the period, over the daily weighted average number of subscribers for the period. ARPU is not a measure of financial performance under accounting principles generally accepted in the United States and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States. SIRIUS Satellite Radio Inc. Financial Highlights (In thousands, except per share and subscriber data)