Exhibit 99.1 100 STREAMS [SIRIUS LOGO] OF SATELLITE RADIO it's_ON SIRIUS ANNOUNCES THIRD QUARTER 2003 FINANCIAL AND OPERATING RESULTS o Subscribers totaled 149,612 at quarter end; an increase of 42% from total subscribers at last quarter end o Revenue more than doubles from last quarter as fixed costs remain stable NEW YORK - October 29, 2003 - SIRIUS (NASDAQ: SIRI), known for delivering the very best in commercial-free music and premium audio entertainment to cars and homes across the country, today announced third quarter 2003 financial and operating results. As of September 30, 2003, SIRIUS reported 149,612 subscribers. This represents a net subscriber addition of 44,426 for the third quarter of 2003, a 42% increase from the company's total subscribers at the end of the second quarter of 2003 and over twelve times the number of ending subscribers reported for the third quarter of 2002. "With three brands of transportable Plug-&-Play products now available and more on the way, we believe SIRIUS is well positioned to take advantage of the upcoming holiday selling season", said Joseph P. Clayton, President and CEO of SIRIUS. "During a seasonally slow third quarter at retail, SIRIUS showed strong signs of consumer acceptance this summer. Based on data from NPD Group, our retail unit share increased by 48% over the previous quarter, which reflects both better products, more brands, and increased consumer awareness." SIRIUS maintains a strong cash position, ending the quarter with $479 million in cash, cash equivalents, and marketable securities. "With a solid cash position and very little debt, our balance sheet remains the strongest in satellite radio. We have the working capital necessary to continue to execute our business plan and grow our subscriber base," said David Frear, Chief Financial Officer of SIRIUS. During the third quarter, SIRIUS significantly enhanced its product portfolio and premium programming offerings. In addition to completing the rollout of transportable Plug-&-Play products from Kenwood and Audiovox, SIRIUS also partnered with The Brix Group to introduce an attractive, rugged portable unit for the trucking market, called the Streamer. The company expects to further expand its product assortment this year with a dedicated in-home receiver and a portable boombox. Adding to its strong sports line-up, SIRIUS recently announced a marketing and sponsorship agreement with the National Hockey League. SIRIUS will carry up to 40 NHL games per week. In September, Ford and SIRIUS announced that SIRIUS is now available as an option on 10 Ford vehicles. Ford, Mercedes-Benz, DaimlerChrysler, BMW, Nissan, Infiniti, and Audi are all now offering Sirius as a factory or dealer option on select 2004 models. THIRD QUARTER 2003 - ------------------ For the third quarter of 2003, SIRIUS recognized total revenue of $4.3 million, compared to $17 thousand for the third quarter of 2002 and $2.1 million for the second quarter of 2003. SIRIUS reported a loss from operations of $(103.5) million for the third quarter of 2003, compared to a loss from operations of $(81.7) million for the third quarter of 2002. SIRIUS reported a net loss applicable to common stockholders of $(106.7) million, or $(0.11) per share, for the third quarter of 2003, compared with a net loss applicable to common stockholders of $(119.7) million, or $(1.56) per share, for the third quarter of 2002. SIRIUS' adjusted EBITDA loss for the third quarter of 2003 was $(79.8) million, compared with $(58.7) million for the third quarter of 2002. SIRIUS' adjusted EBITDA loss for the third quarter of 2002 excludes $1.9 million of costs associated with the company's restructuring. For the third quarter of 2003, average monthly revenue per subscriber, or ARPU, was $11.20. Excluding the effects of mail-in rebate programs, ARPU for the third quarter of 2003 was $10.31. YEAR TO DATE 2003 - ----------------- For the year to date period ended September 30, 2003, SIRIUS recognized total revenue of $7.9 million, compared to $120 thousand for the year to date period ended September 30, 2002. SIRIUS reported a loss from operations of $(312.4) million for the 2003 period, compared to a loss from operations of $(222.3) million for the 2002 period. SIRIUS reported a net loss applicable to common stockholders of $(166.6) million, or $(0.22) per share, for the 2003 period, compared with a net loss applicable to common stockholders of $(334.4) million, or $(4.41) per share, for the 2002 period. Included in net loss applicable to common stockholders for the 2003 period 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. -2- SIRIUS' adjusted EBITDA loss for the 2003 period was $(241.2) million, compared with $(162.7) million for the 2002 period. SIRIUS' adjusted EBITDA loss for the 2003 period 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' adjusted EBITDA loss for the 2002 period excludes $1.9 million of costs associated with the company's restructuring. For the 2003 period, ARPU was $10.01. Excluding the effects of mail-in rebate programs, ARPU for the 2003 period was $10.56. (Selected Balance Sheet Data and Statement of Operations follow). SIRIUS defines adjusted EBITDA loss as net loss before interest and investment income, interest expense, net of amounts capitalized, 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. In addition, we have recognized a gain associated with the restructuring of our debt. 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 defines subscriber acquisition costs, or SAC, as costs of incentives for the purchase, installation, and activation of Sirius radios, as well as subsidies paid to radio manufacturers, automakers and retailers, and payments to Agere. SAC 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. -3- Sirius Satellite Radio Inc. Financial Highlights (In thousands, except per share and subscriber data) (Unaudited)