Exhibit 99.1

                        REPORT OF INDEPENDENT ACCOUNTANTS


To the Board of Directors and Stockholders of CD Radio Inc.:

         We have audited the accompanying consolidated balance sheets of CD
Radio Inc. and Subsidiary (a Development Stage Enterprise) as of December 31,
1996 and 1997, and the related consolidated statements of operations,
stockholders' equity and cash flows for each of the three years in the period
ended December 31, 1997 and for the period May 17, 1990 (date of inception) to
December 31, 1997. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

         We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

         In our previously issued report, dated March 3, 1998 and October 7,
1998, on our audits of the aforementioned consolidated financial statements, we
included an explanatory paragraph describing certain uncertainties with respect
to the availability of funds to sustain the Company's activities through 1999.
Subsequent to that report, the Company has obtained additional funding as
described in Item 5 of the Company's Form 8-K, filed on December 10, 1998. This
funding alleviates those uncertainties that the Company may be able to continue
as a going concern through 1999.

         In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of CD
Radio Inc. and Subsidiary as of December 31, 1996 and 1997, and the consolidated
results of their operations and their cash flows for each of the three years in
the period ended December 31, 1997 and for the period May 17, 1990 (date of
inception) to December 31, 1997 in conformity with generally accepted accounting
principles.

                                             /s/ PricewaterhouseCoopers LLP
                                             ------------------------------

McLean, VA 
March 3, 1998, except as to 
the third paragraph for which 
the date is December 10, 1998.

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