XM Expects Great Response to Delphi XM SKYFi 'Boom Box' Audio System

Jan. 21 /PRNewswire-FirstCall/ -- XM Satellite Radio, the nation's leading satellite radio service, announced today it expects some 80,000 Delphi XM SKYFi "boom box" units to ship to retailers in the first half of this year, marking the company's major entry into the home and portable segment of the audio market.

"XM's accelerating subscriber growth has been fueled by our 'third launch' into the home and portable markets with our next-generation SKYFi family of products from Delphi, including XM's first portable boom box radio, which will be a big part of our 2003 march to exceed 1 million subscribers," said XM President and CEO Hugh Panero.

According to Delphi Chairman, President and CEO J.T. Battenberg III, "We've seen our satellite radio business take off like a rocket. We are particularly encouraged by the reaction to the SKYFi XM Satellite Radio. This product exceeded our sales goals for 2002 with approximately 100,000 units sold to retailers. We expect great things from the SKYFi boom box in 2003."

"With the SKYFI boom box, you can have the extraordinary benefits of the digital world, with great portability. For $200, you're in business with digital satellite radio," said Alan McCollough, chairman, president and chief executive officer of Circuit City, whose company has highlighted the boom box as one of the top products of 2003.

SKYFi incorporates the most advanced user features of any satellite radio on the market today. The boom box audio system, which is priced at less than $230 MSRP, lets consumers take XM Radio wherever they want to enjoy XM's 101 amazing channels. The integrated audio system includes the Delphi SKYFi receiver with its superior user interface including 20 channel presets, direct channel entry, five-line display including channel name, artist and song title, large-font-size option and the ability to preview and search XM channels by artists and song titles. It also includes a pair of high-quality speakers and remove control device. 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).

The SKYFi Audio System, the first portable satellite radio and a Christmas sensation, is arriving at thousands of retail outlets across the country. The first boom boxes reached retail shelves very late in the fourth quarter of 2002 and sold out almost immediately. The line debuted late last year at Circuit City, Best Buy and select other major national retailers, and is now on its way to national, regional and local independent retailers.

The SKYFi boom box, described by the Philadelphia Daily News as a "drop- dead gorgeous ... category killer," was named a finalist for the Best of CES award for 2003 in the portable audio category. XM expects strong SKYFi sales in 2003.

XM (NASDAQ:XMSR) had more than 360,000 subscribers as of Jan. 8, on track to exceed 1 million subscribers in 2003. General Motors recently announced it will expand the availability of factory-installed XM radios across 44 different models, including household brand names such as Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac. Honda announced it will make XM available as a factory-installed feature on key Acura and Honda models, including the top-selling Honda Accord. XM will be available as an option on future Nissan, Infiniti, 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, more than 35 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'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/.

Source: XM Satellite Radio