Delphi and XM Introduce First Portable Satellite Radio

Dec. 10 /PRNewswire-FirstCall/ -- Delphi Product & Service Solutions, part of Delphi Corporation (NYSE:DPH), and XM Satellite Radio (NASDAQ:XMSR) announced today the first portable satellite radio -- the new SKYFi Audio System -- will hit store shelves at Best Buy and Circuit City next week.

The SKYFi Audio System, a self-contained "boom box," provides the flexibility to take XM anywhere a subscriber wants to enjoy XM's 101 channels of revolutionary programming. Delphi, a pioneer of in-vehicle entertainment and electronics, and XM, America's leading satellite radio service, recently teamed to offer the Delphi XM SKYFi Radio receiver, an attractive, compact unit that provides the most advanced user features of any satellite radio on the market today.

The Delphi XM SKYFi Audio System -- the boom box with the SKYFi receiver -- retails for $229.99 (MSRP). The System contains a pair of high-quality speakers with an integrated high gain antenna and a port for the SKYFi receiver. It can be powered by an A/C adaptor to create a high quality countertop/ bookshelf XM system for the home or office, or used with six "D" batteries to experience XM in virtually any location. XM listeners who already own the SKYFi receiver can purchase the boom box portion alone for $99.99 (MSRP).

"As the world's largest automotive electronics manufacturer, Delphi has the knowledge and has moved quickly to enhance the XM Satellite Radio user- experience with a product that is feature-rich and easy to use," said Francisco A. (Frank) Ordonez, president of Delphi Product & Service Solutions and vice president of Delphi Corporation. "Audio enthusiasts demand a full- featured product. Delphi and XM have designed SKYFi products with these special needs in mind."

"We're excited that the first portable satellite radio product will soon reach retail stores," said Robert Acker, XM's Vice-President, Product Marketing and Strategy. "This product will open a new market for the XM service. Now consumers can take XM with them anywhere they want, from the home to the office to the beach."

The SKYFi receiver, an affordable next-generation XM radio, offers the most advanced user features of any satellite radio on the market today, and all the features XM fans have been demanding most: portability, a large display, direct channel entry, the ability to preview and search XM channels by artists and song titles, and 20 channel presets. The compact receiver, along with vehicle and home accessory kits, arrived at major retail outlets in October.

The SKYFi receiver has already drawn widespread praise from consumers, retailers and the media. Under the subhead "Drop Dead Gorgeous," The Philadelphia Daily News called SKYFi a "category killer": "In the electronics industry, there's a curious term called the 'category killer.' It's applied to a product that promises to revolutionize the industry, sparking great consumer interest and sending competitors scrambling. Just such a product is Delphi's new SKYFi "plug and play" radio for the XM Satellite radio system, a best-of- year design contender and sure shot to top many a gift wish list." -- Jonathan Takiff

About XM Radio
XM (NASDAQ:XMSR) is the fastest-selling audio product in the last 20 years, with 201,500 subscribers as of Sept. 30. General Motors recently began selling factory-installed XM radios across 25 different 2003 models including household brand names such as Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac. XM-equipped Nissan Pathfinder SUVs have begun arriving at dealerships, to be followed in early 2003 by the XM-equipped Nissan Murano, Infiniti I35 luxury sedans, M45 sedans, Q45 performance luxury sedans, G35 sedans and coupes. Honda has announced XM will be available in the Honda Accord, Honda Pilot and Acura MDX. Isuzu dealers offer XM radios to buyers of their Axiom and Rodeo models. XM will be available as an option on future Audi and Volkswagen models. XM radios are available at major electronics retailers nationwide. Leading manufacturers such as Sony, Alpine, Pioneer, Audiovox and Delphi, maker of the acclaimed SKYFi radio line, offer a broad array of XM radios that easily enable any existing car stereo system.

XM is transforming radio, an industry that has seen little technological change since FM, almost 40 years ago. XM's programming lineup features 101 coast-to-coast digital channels: 70 music channels, many of them commercial- free, from hip hop to opera, classical to country, bluegrass to blues; and 31 channels of sports, talk, children's and entertainment. XM was named 2001 "Product of the Year" by Fortune, an "Invention of the Year" by Time, won Popular Science's 2001 "Best of What's New" Grand Award in the electronics category, and last month was named "Company in Communications" on the Scientific American 50. XM won several awards at the 2001 Consumer Electronics Show (CES), including "Best of CES" in the automotive category, and received a coveted "A" rating from Entertainment Weekly. XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. For more information, please visit XM's web site: http://www.xmradio.com/ .

For more information about Delphi, visit http://www.delphi.com/media .

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Source: Delphi Product & Service Solutions; XM Satellite Radio Inc.