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Sirius Announces $158 Million Financing

Sirius Satellite Radio, the satellite radio broadcaster, today announced it priced a public offering of common stock resulting in gross proceeds of approximately $158 million. The transaction is being underwritten by Lehman Brothers. Sirius will sell 16 million shares of its common stock at a public offering price of $9.85 per share, and has granted the underwriter an over-allotment option to purchase an additional 2.4 million shares of common stock.

According to Joseph Clayton, president and chief executive officer of Sirius, “This is an important transaction for Sirius. It funds our efforts well into the second quarter of 2003. We are very excited about our business, our prospects and our ability to bring the quality and entertainment of satellite radio to consumers this year. We look forward to unveiling our marketing programs and launch strategy at the Consumer Electronics Show in Las Vegas next week.”

The offering is expected to close on January 8, 2002 and is subject to customary closing conditions. Net proceeds of the offering will be used to fund operating expenses and for general corporate purposes.

A shelf registration statement relating to the shares was previously declared effective by the Securities and Exchange Commission. The shares may be offered only by means of a prospectus supplement and related prospectus. A copy of the prospectus supplement and related prospectus relating to the common stock offering may be obtained from Lehman Brothers.