XM Satellite Radio And Knitting Factory Entertainment Partner To Create Regular Concert Series Showcasing Best In Independent Music

Washington D.C., April 11, 2006 -- XM Satellite Radio (NASDAQ: XMSR), the nation’s leading satellite radio service with more than 6.5 million subscribers, and Knitting Factory Entertainment, America’s most prolific presenter of independent music, today announced a new partnership to create a regular concert series for broadcast. The “Live from the Knitting Factory” series will feature performances from influential and emerging independent music artists from a variety of genres recorded live at the Knitting Factory venues in New York and Los Angeles. The concert series is scheduled to debut this fall and will air on XM’s premiere channel for independent/college music, XMU (XM 43), one of seven channels dedicated to independent and alternative music offered by XM.

“Both XM and Knitting Factory Entertainment strive to provide fans of independent music with a place to hear intriguing, up-and-coming artists who traditionally haven’t had the broadcast or performance opportunities to reach a larger audience,” said Eric Logan, executive vice president of programming for XM Satellite Radio. “Given both companies’ commitment to independent music this partnership to create a ”Live from the Knitting Factory“ concert series on XM’s indie music channel, XMU, made perfect sense.”

“Because they offer the most complete independent music programming on satellite radio, teaming up with XM provides Knitting Factory Entertainment with a great national platform to further highlight our role as a primary arbiter and filter of emerging music talent,” said Jared Hoffman, president and CEO, Knitting Factory Entertainment. “This new partnership is a unique opportunity for both XM Satellite Radio and Knitting Factory Entertainment to expose the indie music community to a live music experience unavailable anywhere else.”

The Knitting Factory has earned a reputation as a top venue for independent and alternative artists, bringing to its stages some of today’s most popular emerging music acts, including M.I.A., The Arcade Fire, Bloc Party, Sufjan Stevens, and more, as well as established artists such as Beck, PJ Harvey and Death Cab for Cutie. Similarly, from XM’s studios in the U.S. and Canada XMU has hosted an impressive list of emerging artists for interviews, performances and broadcast specials, including The New Pornographers, Stars, Elefant, Belle & Sebastian, Spoon and Yeah Yeah Yeahs, among others.

About Knitting Factory Entertainment
Knitting Factory Entertainment (KFE) is America’s most prolific presenter of new and emerging musical talent. With more than 6,000 live music performances each year at its multi-stage New York and Hollywood venues, this treasured New York cultural icon has been transformed into a leading national arbiter and filter of ’what’s next’ on the independent music scene.

With a focus on the creation of a national platform with direct, demonstrable contact with the urban active demographic, Knitting Factory is actively developing a presence in the branded entertainment space, and developing media partnerships harnessing KFE’s power as an aggregator of exclusive live performance content. A recent strategic investment in a leading regional concert promoter has elevated the Knitting Factory organization into one of the nation’s top ten concert and tour promoters with operations across 20 states, and growth by several new venues each year. For more information, please visit http://www.knittingfactory.com.

About XM Satellite Radio
XM is America’s number one satellite radio service with more than 6.5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM’s 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, sports, talk, comedy, children’s and entertainment programming; and the most advanced traffic and weather information.

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 130 different vehicle models for 2006. 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 3-3-06. Copies of the filing are available upon request from XM Radio’s Investor Relations Department.

Contact Information

Anne-Taylor Griffith

XM Satellite Radio

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