SIRIUS to Augment Satellite Constellation

Space Systems/Loral to Design and Build Additional Satellite for SIRIUS

SIRIUS Reaffirms Free Cash Flow Guidance



08 Jun, 2006, 01:00 ET from SIRIUS Satellite Radio

    NEW YORK, June 8 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio
 (Nasdaq:   SIRI) announced that it has entered into an agreement with Space
 Systems/Loral, a subsidiary of Loral Space & Communications (Nasdaq:   LORL),
 for the design and construction of a new satellite that will be one of the
 most advanced and powerful communications satellites ever built.
     (Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )
     Construction of the satellite is expected to be completed in the fourth
 quarter of 2008. SIRIUS plans to launch the satellite on a Proton rocket
 under a contract previously announced between SIRIUS and International
 Launch Services (ILS). The satellite will be launched into a geostationary
 orbit to complement SIRIUS' existing three satellites, which were also
 manufactured by Space Systems/Loral and operate in a highly elliptical
 geosynchronous orbit. This unique hybrid constellation will provide
 unparalleled redundancy, enhanced coverage and exceptional performance.
     "This investment in next generation space technology will improve
 SIRIUS' already exceptional service experience," said Mel Karmazin, CEO of
 SIRIUS. "Not only will this satellite support our other three satellites
 currently in orbit, but it will also improve reception for all SIRIUS
 subscribers whether they are in their car, office, home or jogging in the
 park."
     The aggregate cost of designing, building, launching and insuring the
 launch of the satellite will be approximately $260 million. As part of its
 commitment to SIRIUS, Loral has agreed to provide a $100 million vendor
 financing facility. SIRIUS has no current plans to draw under the vendor
 financing facility.
     SIRIUS continues to expect that its first quarter of positive free cash
 flow, after capital expenditures, could be reached as early as the fourth
 quarter of 2006, and that the company will be free cash flow positive,
 after capital expenditures, for the full-year 2007. The payments associated
 with the purchase and launch of this satellite were anticipated in SIRIUS'
 guidance concerning free cash flow positive.
     About SIRIUS
     SIRIUS delivers more than 125 channels of the best programming in all
 of radio. SIRIUS is the original and only home of 100% commercial free
 music channels in satellite radio, offering 67 music channels available
 nationwide. SIRIUS also delivers 61 channels of sports, news, talk,
 entertainment, traffic, weather and data. SIRIUS is the Official Satellite
 Radio Partner of the NFL, NBA and NHL and broadcasts live play-by-play
 games of the NFL, NBA and NHL. All SIRIUS programming is available for a
 monthly subscription fee of only $12.95.
     SIRIUS products for the car, truck, home, RV and boat are available in
 more than 25,000 retail locations, including Best Buy, Circuit City,
 Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at
 shop.sirius.com.
     SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler, Dodge,
 Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln-Mercury, Mazda,
 Mercedes-Benz, MINI, Nissan, Rolls Royce, Scion, Toyota, Porsche,
 Volkswagen and Volvo. Hertz also offers SIRIUS in its rental cars at major
 locations around the country.
     Click on http://www.sirius.com to listen to SIRIUS live, or to purchase
 a SIRIUS radio and subscription.
     Any statements that express, or involve discussions as to,
 expectations, beliefs, plans, objectives, assumptions, future events or
 performance with respect to SIRIUS Satellite Radio Inc. are not historical
 facts and may be forward-looking and, accordingly, such statements involve
 estimates, assumptions and uncertainties which could cause actual results
 to differ materially from those expressed in any forward-looking
 statements. Accordingly, any such statements are qualified in their
 entirety by reference to the factors discussed in our Annual Report on Form
 10-K for the year ended December 31, 2005 filed with the Securities and
 Exchange Commission. Among the key factors that have a direct bearing on
 our operational results are: our dependence upon third parties, including
 manufacturers of SIRIUS radios, retailers, automakers and programming
 partners, our competitive position and any events which affect the useful
 life of our satellites.
     G-SIRI
 
     Media Contact:
 
     Patrick Reilly
     SIRIUS
     212.901.6646
     preilly@siriusradio.com
 
     Jim Collins
     SIRIUS
     212.901.6422
     jcollins@siriusradio.com
 
 

SOURCE SIRIUS Satellite Radio
    NEW YORK, June 8 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio
 (Nasdaq:   SIRI) announced that it has entered into an agreement with Space
 Systems/Loral, a subsidiary of Loral Space & Communications (Nasdaq:   LORL),
 for the design and construction of a new satellite that will be one of the
 most advanced and powerful communications satellites ever built.
     (Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )
     Construction of the satellite is expected to be completed in the fourth
 quarter of 2008. SIRIUS plans to launch the satellite on a Proton rocket
 under a contract previously announced between SIRIUS and International
 Launch Services (ILS). The satellite will be launched into a geostationary
 orbit to complement SIRIUS' existing three satellites, which were also
 manufactured by Space Systems/Loral and operate in a highly elliptical
 geosynchronous orbit. This unique hybrid constellation will provide
 unparalleled redundancy, enhanced coverage and exceptional performance.
     "This investment in next generation space technology will improve
 SIRIUS' already exceptional service experience," said Mel Karmazin, CEO of
 SIRIUS. "Not only will this satellite support our other three satellites
 currently in orbit, but it will also improve reception for all SIRIUS
 subscribers whether they are in their car, office, home or jogging in the
 park."
     The aggregate cost of designing, building, launching and insuring the
 launch of the satellite will be approximately $260 million. As part of its
 commitment to SIRIUS, Loral has agreed to provide a $100 million vendor
 financing facility. SIRIUS has no current plans to draw under the vendor
 financing facility.
     SIRIUS continues to expect that its first quarter of positive free cash
 flow, after capital expenditures, could be reached as early as the fourth
 quarter of 2006, and that the company will be free cash flow positive,
 after capital expenditures, for the full-year 2007. The payments associated
 with the purchase and launch of this satellite were anticipated in SIRIUS'
 guidance concerning free cash flow positive.
     About SIRIUS
     SIRIUS delivers more than 125 channels of the best programming in all
 of radio. SIRIUS is the original and only home of 100% commercial free
 music channels in satellite radio, offering 67 music channels available
 nationwide. SIRIUS also delivers 61 channels of sports, news, talk,
 entertainment, traffic, weather and data. SIRIUS is the Official Satellite
 Radio Partner of the NFL, NBA and NHL and broadcasts live play-by-play
 games of the NFL, NBA and NHL. All SIRIUS programming is available for a
 monthly subscription fee of only $12.95.
     SIRIUS products for the car, truck, home, RV and boat are available in
 more than 25,000 retail locations, including Best Buy, Circuit City,
 Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at
 shop.sirius.com.
     SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler, Dodge,
 Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln-Mercury, Mazda,
 Mercedes-Benz, MINI, Nissan, Rolls Royce, Scion, Toyota, Porsche,
 Volkswagen and Volvo. Hertz also offers SIRIUS in its rental cars at major
 locations around the country.
     Click on http://www.sirius.com to listen to SIRIUS live, or to purchase
 a SIRIUS radio and subscription.
     Any statements that express, or involve discussions as to,
 expectations, beliefs, plans, objectives, assumptions, future events or
 performance with respect to SIRIUS Satellite Radio Inc. are not historical
 facts and may be forward-looking and, accordingly, such statements involve
 estimates, assumptions and uncertainties which could cause actual results
 to differ materially from those expressed in any forward-looking
 statements. Accordingly, any such statements are qualified in their
 entirety by reference to the factors discussed in our Annual Report on Form
 10-K for the year ended December 31, 2005 filed with the Securities and
 Exchange Commission. Among the key factors that have a direct bearing on
 our operational results are: our dependence upon third parties, including
 manufacturers of SIRIUS radios, retailers, automakers and programming
 partners, our competitive position and any events which affect the useful
 life of our satellites.
     G-SIRI
 
     Media Contact:
 
     Patrick Reilly
     SIRIUS
     212.901.6646
     preilly@siriusradio.com
 
     Jim Collins
     SIRIUS
     212.901.6422
     jcollins@siriusradio.com
 
 SOURCE SIRIUS Satellite Radio