XM Satellite Radio today received from the Federal Communications Commission nationwide terrestrial network authority necessary to commence commercial operations and has rescheduled launch of the first U.S. digital satellite radio service for Tuesday, Sept. 25.
XM had originally scheduled its launch for Sept. 12, but postponed it following the tragic events of last Tuesday in Washington, where the company is based, and in New York. Those events also led to federal shutdown and interruption in the FCC’s repeater network authorization process.
“We are grateful that the FCC has moved so expeditiously in the face of the tragic events that have obviously affected all aspects of government,” said XM President and CEO Hugh Panero. “It is important that all U.S. businesses return to some state of normalcy. The Federal Government is working, the stock market is open and now it’s time for new businesses like ours to show that the tragic events will not deter us.”
The FCC’s action gives XM the Special Temporary Authority it requested to operate its terrestrial repeaters on a nationwide, non-interference basis until March 18, 2002. By then, the FCC should have completed its rules for permanent operation of repeaters.
XM will transform radio, an industry that has seen little technological change since FM, almost 40 years ago. XM delivers 100 channels of digital- quality, coast-to-coast sound, including 71 music channels, more than 30 of them commercial-free, and 29 news, sports, talk, children’s and comedy channels. XM’s lineup also includes a number of premier news and information channels covering the latest national, world and financial developments including CNBC, CNN Headline News, CNNfn, Fox News, USA Today, Bloomberg, BBC and C-SPAN.
XM radios can now be purchased at consumer electronics retailers throughout San Diego and Dallas/Fort Worth. XM will activate customers’ radios in these markets prior to Sept. 25. The service is available for $9.99 a month.
XM will expand its launch throughout the Southwest in mid-October and across the country in November. Leading manufacturers will offer 24 models of XM radios, a broad array including universal models that will easily enable any existing car stereo system to receive XM service, and new AM/FM/XM systems offering many other great features. Sony, Alpine and Pioneer XM radios are being distributed through major electronics retailers including Best Buy, Circuit City, Sears, Tweeter, participating RadioShack Dealers and Franchisees, and Crutchfield. Delphi-Delco systems will roll out initially in Cadillac DeVilles and Sevilles beginning in November, expanding to more than 20 GM models next year.
XM won several awards at the 2001 International Consumer Electronics Show, including “Best of CES” in the automotive category. XM’s strategic investors include America’s leading car, radio and satellite TV companies – General Motors, American Honda Motor Co. Inc., Clear Channel Communications, DIRECTV and Motient Corporation. For more information, please visit XM’s web site: http://www.xmradio.com.
Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include uncertainties associated with, the company’s dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.’s Form 8-K filed with the Securities and Exchange Commission on 2-22-2001. Copies of the filing are available upon request from XM Radio’ s Investor Relations Department.