XM Satellite Radio Holdings Inc. Announces First Quarter 2001 Results

Successfully Launched 'Rock' and Preparing to Launch 'Roll' May 7



Delivered Production Chipsets to Radio Manufacturers



Fully Funded Thru Third Quarter 2001 Commercial Launch and into 2002



Apr 26, 2001, 01:00 ET from XM Satellite Radio Holdings Inc.

    WASHINGTON, April 26 /PRNewswire/ -- XM Satellite Radio Holdings Inc.
 (Nasdaq:   XMSR), ("XM Radio"), an innovator in radio entertainment, today
 reported financial and operating results for the first quarter ended March 31,
 2001.  During the quarter, XM Radio achieved several critical milestones
 including raising over $200 million in additional funding, successfully
 launching its first satellite, "Rock," and, together with STMicroelectronics,
 delivering production chipsets to XM's radio manufacturing partners in
 preparation for third quarter 2001 commercial launch of service.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO )
 
     First Quarter Financial and Operating Results
     The company reported first quarter 2001 consolidated operating loss (EBIT)
 of ($42.1) million, a consolidated net loss of ($36.9) million, and a
 consolidated net loss available to common shareholders of ($42.7) million, or
 ($0.80) per share.  In comparison, for the first quarter of 2000, XM had a
 consolidated operating loss of ($16.9) million, a consolidated net loss of
 ($12.7) million, and a consolidated net loss available to common shareholders
 of ($14.2) million, or ($0.30) per share.
 
     XM Fully Funded into 2002
     On March 6, 2001, XM Radio completed public offerings of its Class A
 Common Stock and 7.75% Convertible Subordinated Notes due 2006, raising a
 gross total of $201.4 million.  The proceeds will be used primarily for
 marketing, systems, and other general corporate purposes, and are expected to
 fund company operations into 2002.
 
     XM Successfully Launched First Satellite, Preparing for Second Launch
     On March 18, 2001, XM Radio successfully launched its first satellite,
 "Rock," from the Sea Launch Odyssey Launch Platform.  In addition, the
 satellite has successfully achieved several performance milestones including
 the deployment of the communications antennas and solar panels.  The company's
 second satellite, "Roll," is scheduled for launch on May 7, 2001.
 
     XM Delivered Production Design Chipsets to Radio Manufacturers
     STMicroelectronics N.V. (NYSE:   STM) completed the chipset fabrication
 process and shipped production chips to XM's radio manufacturers including
 Sony, Pioneer, Alpine and Delphi-Delco for final validation, testing and
 integration into XM-ready radios.  The two custom silicon chips allow XM
 radios to receive and decode digital signals broadcast via satellite and
 terrestrial repeaters from XM's Broadcast Center studios in Washington, D.C.
 XM released its first pass silicon chips in October 2000 and completed the
 final production design and commenced fabrication of silicon in February 2001.
 
     XM Announced Radio Manufacturing and Distribution Agreements
     XM Radio announced radio manufacturing deals with Visteon Corporation,
 Panasonic and Sanyo Electric Co., Ltd to deliver the next generation of audio
 entertainment to automotive customers.  In addition, XM announced distribution
 agreements with Sears and Radio Shack Franchise Group, two of the nation's top
 car stereo retailers, to promote XM Radio products and services at locations
 across the country.  XM now has a retail reach of more than 4,000 outlets.
 
     About XM Satellite Radio
     XM will transform radio, an industry that has seen little technological
 change since FM, almost 40 years ago.  XM will offer up to 100 channels of
 digital-quality sound and provide coast-to-coast coverage of music, news,
 sports, talk, comedy and children's programming.  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, the company's largest shareholder.  XM has a long-
 term distribution agreement with General Motors to integrate XM radios into GM
 vehicles commencing in 2001. XM-ready radios are being manufactured by such
 household names as Sony, Alpine, Pioneer, Clarion, Blaupunkt, Delphi-Delco,
 Visteon, Panasonic, and Sanyo. Radios are being shipped to retailers including
 Best Buy, Circuit City, RadioShack, Sears and Crutchfield. 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 launch of the company's satellites, 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 Feb. 22,
 2001. Copies of the filing are available upon request from XM Radio' s
 Investor Relations Department.
 
                         XM SATELLITE RADIO HOLDINGS INC.
                               FINANCIAL HIGHLIGHTS
                       (in thousands, except share amounts)
                                    (unaudited)
 
 
     Statements of Operations Data                       Three Months ended
                                                              March 31,
                                                        2001             2000
 
     Revenue                                        $      -         $      -
 
     Operating expenses:
        Research and development                       1,504            4,519
        Professional fees                              5,069            5,594
        General and administrative                    35,551            6,775
            Total operating expenses                  42,124           16,888
 
     Operating loss                                  (42,124)         (16,888)
 
     Other expense -- interest income
        (expense), net                                 5,176            4,148
 
     Net loss                                       $(36,948)        $(12,740)
 
     Preferred dividends                              (5,788)          (1,472)
 
     Net loss applicable to common
      stockholders                                  $(42,736)        $(14,212)
 
     Net loss per share:
        -- basic and diluted                          $(0.80)          $(0.30)
 
     Weighted average shares used in
        computing net loss per share
        -- basic and diluted                      53,254,778       47,195,963
 
 
 
     Balance Sheets Data                            March 31,      December 31,
                                                       2001             2000
     Cash, cash equivalents and short-term
      investments                                    311,518          224,903
     Restricted cash                                 139,465          161,166
     System under construction                       881,095          805,563
     Total assets                                  1,444,698        1,293,218
     Total long-term debt                            391,537          262,665
     Total liabilities                               452,926          337,266
     Stockholders' equity                            991,772          955,952
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X34319687
 
 

SOURCE XM Satellite Radio Holdings Inc.
    WASHINGTON, April 26 /PRNewswire/ -- XM Satellite Radio Holdings Inc.
 (Nasdaq:   XMSR), ("XM Radio"), an innovator in radio entertainment, today
 reported financial and operating results for the first quarter ended March 31,
 2001.  During the quarter, XM Radio achieved several critical milestones
 including raising over $200 million in additional funding, successfully
 launching its first satellite, "Rock," and, together with STMicroelectronics,
 delivering production chipsets to XM's radio manufacturing partners in
 preparation for third quarter 2001 commercial launch of service.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO )
 
     First Quarter Financial and Operating Results
     The company reported first quarter 2001 consolidated operating loss (EBIT)
 of ($42.1) million, a consolidated net loss of ($36.9) million, and a
 consolidated net loss available to common shareholders of ($42.7) million, or
 ($0.80) per share.  In comparison, for the first quarter of 2000, XM had a
 consolidated operating loss of ($16.9) million, a consolidated net loss of
 ($12.7) million, and a consolidated net loss available to common shareholders
 of ($14.2) million, or ($0.30) per share.
 
     XM Fully Funded into 2002
     On March 6, 2001, XM Radio completed public offerings of its Class A
 Common Stock and 7.75% Convertible Subordinated Notes due 2006, raising a
 gross total of $201.4 million.  The proceeds will be used primarily for
 marketing, systems, and other general corporate purposes, and are expected to
 fund company operations into 2002.
 
     XM Successfully Launched First Satellite, Preparing for Second Launch
     On March 18, 2001, XM Radio successfully launched its first satellite,
 "Rock," from the Sea Launch Odyssey Launch Platform.  In addition, the
 satellite has successfully achieved several performance milestones including
 the deployment of the communications antennas and solar panels.  The company's
 second satellite, "Roll," is scheduled for launch on May 7, 2001.
 
     XM Delivered Production Design Chipsets to Radio Manufacturers
     STMicroelectronics N.V. (NYSE:   STM) completed the chipset fabrication
 process and shipped production chips to XM's radio manufacturers including
 Sony, Pioneer, Alpine and Delphi-Delco for final validation, testing and
 integration into XM-ready radios.  The two custom silicon chips allow XM
 radios to receive and decode digital signals broadcast via satellite and
 terrestrial repeaters from XM's Broadcast Center studios in Washington, D.C.
 XM released its first pass silicon chips in October 2000 and completed the
 final production design and commenced fabrication of silicon in February 2001.
 
     XM Announced Radio Manufacturing and Distribution Agreements
     XM Radio announced radio manufacturing deals with Visteon Corporation,
 Panasonic and Sanyo Electric Co., Ltd to deliver the next generation of audio
 entertainment to automotive customers.  In addition, XM announced distribution
 agreements with Sears and Radio Shack Franchise Group, two of the nation's top
 car stereo retailers, to promote XM Radio products and services at locations
 across the country.  XM now has a retail reach of more than 4,000 outlets.
 
     About XM Satellite Radio
     XM will transform radio, an industry that has seen little technological
 change since FM, almost 40 years ago.  XM will offer up to 100 channels of
 digital-quality sound and provide coast-to-coast coverage of music, news,
 sports, talk, comedy and children's programming.  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, the company's largest shareholder.  XM has a long-
 term distribution agreement with General Motors to integrate XM radios into GM
 vehicles commencing in 2001. XM-ready radios are being manufactured by such
 household names as Sony, Alpine, Pioneer, Clarion, Blaupunkt, Delphi-Delco,
 Visteon, Panasonic, and Sanyo. Radios are being shipped to retailers including
 Best Buy, Circuit City, RadioShack, Sears and Crutchfield. 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 launch of the company's satellites, 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 Feb. 22,
 2001. Copies of the filing are available upon request from XM Radio' s
 Investor Relations Department.
 
                         XM SATELLITE RADIO HOLDINGS INC.
                               FINANCIAL HIGHLIGHTS
                       (in thousands, except share amounts)
                                    (unaudited)
 
 
     Statements of Operations Data                       Three Months ended
                                                              March 31,
                                                        2001             2000
 
     Revenue                                        $      -         $      -
 
     Operating expenses:
        Research and development                       1,504            4,519
        Professional fees                              5,069            5,594
        General and administrative                    35,551            6,775
            Total operating expenses                  42,124           16,888
 
     Operating loss                                  (42,124)         (16,888)
 
     Other expense -- interest income
        (expense), net                                 5,176            4,148
 
     Net loss                                       $(36,948)        $(12,740)
 
     Preferred dividends                              (5,788)          (1,472)
 
     Net loss applicable to common
      stockholders                                  $(42,736)        $(14,212)
 
     Net loss per share:
        -- basic and diluted                          $(0.80)          $(0.30)
 
     Weighted average shares used in
        computing net loss per share
        -- basic and diluted                      53,254,778       47,195,963
 
 
 
     Balance Sheets Data                            March 31,      December 31,
                                                       2001             2000
     Cash, cash equivalents and short-term
      investments                                    311,518          224,903
     Restricted cash                                 139,465          161,166
     System under construction                       881,095          805,563
     Total assets                                  1,444,698        1,293,218
     Total long-term debt                            391,537          262,665
     Total liabilities                               452,926          337,266
     Stockholders' equity                            991,772          955,952
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X34319687
 
 SOURCE  XM Satellite Radio Holdings Inc.