Subaru To Offer XM Satellite Radio

Subaru to offer XM exclusively on three top-selling 2007 model vehicles

Washington D.C., February 09, 2006 -- Subaru of America, Inc. announced today that three 2007 models, including the company’s top-selling Legacy and Outback, will offer XM Satellite Radio (NASDAQ: XMSR) exclusively when they debut later this year. The third XM-Ready model, the progressive 2007 B9 Tribeca SUV, will be the first-ever Subaru to feature satellite radio when it goes on sale in June 2006. A new B9 Tribeca Special Edition model, introduced today at the Chicago International Auto Show, will also feature XM as standard equipment. Together, these three models comprised 50 percent of all U.S. sales for Subaru in 2005 - a year during which the company also enjoyed its third consecutive all-time sales record.

“Subarus and Subaru owners have always been synonymous with free spirit and freedom of choice, qualities that also define XM Radio enthusiasts,” said Paul Kirsch, VP, OEM Marketing, XM Satellite Radio. “That’s why we are especially pleased to be Subaru’s exclusive satellite radio partner for several top-selling models later this year.”

“Satellite radio is one of today’s most in-demand vehicle features because it allows listeners to fully customize and control their in-car entertainment experience,” says Rick Crosson, Vice President of Marketing, Subaru of America Inc. “At Subaru, we constantly strive to provide owners with even more features that reflect their unique needs and lifestyles - so adding satellite radio’s unparalleled channel choices to the mix was an easy decision.”

Every 2007 Subaru with XM Satellite Radio also comes standard with three months of complimentary XM service and waived activation fee. XM subscribers pay a monthly fee of $12.95 for XM Satellite Radio’s award-winning, around-the-clock programming. Buyers will be able to request XM Satellite Radio as either a port or dealer-installed feature to have a fully-integrated digital-quality system.

About XM Satellite Radio

XM (NASDAQ: XMSR) is America’s number one satellite radio service with more than six million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM’s 2006 lineup includes 160 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier 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, Porsche, Volkswagen, Audi, and Subaru, 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-Q filed with the Securities and Exchange Commission on 11-7-05. Copies of the filing are available upon request from XM Radio’s Investor Relations Department.

Contact Information

David Butler

XM Satellite Radio

Contact via E-mail