XM Satellite Radio Announces Strategic Investment in WorldSpace
XM Satellite Radio (NASDAQ: XMSR), the nation’s leading satellite radio company with more than 4.4 million subscribers, today announced that it has made a strategic investment of $25 million in the common stock of WorldSpace, Inc., a leading satellite radio provider for Asia, Europe, the Middle East and Africa.
In connection with the investment, XM will cooperate with WorldSpace to develop satellite radio products, technology and distribution and supplier networks. In addition, XM will have warrants to acquire $37.5 million in additional WorldSpace stock and an option to invest along with WorldSpace and other partners in various countries around the world.
“We look forward to becoming a strategic investor in WorldSpace’s worldwide satellite radio system and advancing satellite radio technology and reach through our cooperative efforts,” said Gary Parsons, Chairman, XM Satellite Radio.
Through its subscription-based service, WorldSpace broadcasts news, music brand name content and educational programming to a global service area and targets its programming to consumers, governments, and other organizations. The company utilizes its two geo-stationary satellites, AfriStar and AsiaStar, and its ownership of spectrum licenses to deliver more than 100 digital quality audio channels per satellite as well as multimedia content directly to WorldSpace Satellite Radio receivers.
About XM Satellite Radio
XM is America’s number one satellite radio service with more than 4.4 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM’s 2005 lineup includes more than 150 digital channels of choice from coast to coast: commercial-free music channels, premier sports, talk, comedy, children’s and entertainment programming; and advanced traffic and weather information. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards.
XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 120 different vehicle models for 2005. XM’s industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit 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 demand for XM Satellite Radio’s service, the Company’s dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.’s Form 10-K filed with the Securities and Exchange Commission on 3-4-05. Copies of the filing are available upon request from XM Radio’s Investor Relations Department.
XM Contact:
Chance Patterson
Phone: 202-380-4318
chance.patterson@xmradio.com
