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SIRIUS Satellite Radio Reports Preliminary Second Quarter 2008 Results

2008-07-28 05:45:00

SIRIUS Satellite Radio Reports Preliminary Second Quarter 2008 Results

             -- Revenue of $283 Million, Up 25% Year Over Year

    -- Total Subscribers of More Than 8.9 Million, Up 25% Year Over Year

        -- Adjusted Loss from Operations Improves 70% Year Over Year



    NEW YORK, July 28 /EMWNews/ -- SIRIUS Satellite Radio

(Nasdaq: SIRI) today announced preliminary second quarter 2008 financial

results, including a 25% increase in revenue to $283 million, total

subscribers in excess of 8.9 million and a 70% decrease in its adjusted

loss from operations.



    As of June 30, 2008, SIRIUS had 8.924 million subscribers, an increase

of 25% from June 30, 2007 subscribers of 7.143 million. Retail subscribers

increased 7% in the second quarter 2008 to 4.677 million from 4.365 million

in the second quarter 2007. OEM subscribers increased 53% in the second

quarter 2008 to 4.247 million from 2.778 million in the second quarter

2007. Total gross subscriber additions for the quarter ended June 30, 2008

were 1.029 million, compared to 1.002 million for the quarter ended June

30, 2007 and 1.003 million for the quarter ended March 31, 2008. During the

second quarter 2008 SIRIUS added 279,820 new net subscribers, consisting of

246,221 from the OEM channel and 33,599 from the retail channel.



    Second quarter 2008 average monthly self-pay customer churn rate was

1.6%, down from 2.1% in first quarter 2008. The second quarter 2008

conversion rate is estimated to be approximately 48%, up from the first

quarter 2008 conversion rate of approximately 47%.



    Total revenue for the second quarter 2008 is expected to be

approximately $283 million, an increase of 25% from the second quarter 2007

total revenue of $226 million. Operating expenses, excluding depreciation

and stock based compensation, are expected to remain approximately flat in

the second quarter 2008 as compared to the second quarter 2007. Second

quarter 2008 adjusted loss from operations is expected to be approximately

$24 million, an improvement of 70% from the adjusted loss from operations

of $79 million in the second quarter 2007.



    About SIRIUS



    SIRIUS, "The Best Radio on Radio," delivers more than 130 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 69

music channels. SIRIUS also delivers 65 channels of sports, news, talk,

entertainment, traffic, weather and data. SIRIUS is the Official Satellite

Radio Partner of the NFL and NASCAR, and broadcasts live play-by-play games

of the NFL as well as live NASCAR races. All SIRIUS programming is

available for a monthly subscription fee of only $12.95.



    SIRIUS Internet Radio (SIR) is an Internet-only version of the SIRIUS

radio service, without the use of a radio, for the monthly subscription fee

of $12.95. SIR delivers more than 80 channels of talk, entertainment,

sports, and 100% commercial free music.



    SIRIUS Backseat TV (TM) is the first ever live in-vehicle rear seat

entertainment featuring three channels of children's programming, including

Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee

of $6.99 plus applicable audio subscription fee.



    SIRIUS products for the car, truck, home, RV and boat are available at

shop.sirius.com and in more than 20,000 retail locations, including Best

Buy, Circuit City, Crutchfield, Target, Wal-Mart, Sam's Club and

RadioShack.



    As of June 30, 2008, SIRIUS radios were available as a factory and

dealer-installed option in 126 vehicle models and as a dealer

only-installed option in 45 vehicle models.



    SIRIUS has agreements with Aston Martin, Audi, Automobili Lamborghini,

Bentley, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Kia, Land Rover,

Lincoln, Maybach, Mazda, Mercedes-Benz, Mercury, MINI, Mitsubishi,

Rolls-Royce, Volvo, and Volkswagen to offer SIRIUS radios as factory or

dealer-installed equipment in their vehicles. SIRIUS has relationships with

Toyota and Scion to offer SIRIUS radios as dealer-installed equipment, and

a relationship with Subaru to offer SIRIUS radios as factory or

dealer-installed equipment. SIRIUS radios are also offered to renters of

Hertz vehicles at airport locations nationwide.



    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, 2007 and our Quarterly Report on Form

10-Q for the first quarter ended March 31, 2008 filed with the Securities

and Exchange Commission. Among the significant factors that could cause our

actual results to differ materially from those expressed are: our pending

merger with XM Satellite Radio Holdings, Inc. ("XM"), including related

uncertainties and risks and the impact on our business if the merger is not

completed; any events which affect the useful life of our satellites; our

dependence upon third parties, including manufacturers of SIRIUS radios,

retailers, automakers and programming providers; and our competitive

position versus other audio entertainment providers.



    E-SIRI





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