XM RADIO EXCEEDS 2.1 MILLION

[HornHonker]

XM RADIO EXCEEDS 2.1 MILLION SUBSCRIBERS AT END OF SECOND QUARTER OF 2004

XM Adds More than 418,000 Net New Subscribers in Q2 '04

Washington D.C., July 01, 2004 -- XM Satellite Radio (Nasdaq: XMSR), the nation's leading provider of satellite radio, today announced that it finished the second quarter of 2004 with more than 2.1 million subscribers. XM added more than 418,000 net new subscribers in the quarter. XM's subscriber gain during the second quarter of 2004 is more than double the number of subscribers added during the second quarter of 2003, when XM recorded more than 209,000 new subscribers.

"It was another outstanding quarter for XM," said Hugh Panero, President and CEO of XM Satellite Radio. "We saw significant growth at both retail and automotive dealerships, and we experienced very strong sales for Father's Day. We have an exciting summer ahead of us, with a wide variety of exclusive programs on tap, and new products such as the much-anticipated Delphi XM Roady2 available at retail stores."