[Swprograms] Fwd: SIRIUS SATELLITE RADIO

SIRIUS SATELLITE RADIO REPORTS RECORD REVENUE FOR SECOND QUARTER 2005

· Revenue Up 295% and Net Subscriber Additions Up 184% Over Prior Year Second Quarter

· 2005 Year-End Subscriber Guidance Increased to 3 Million and Revenue Guidance Increased to $225 Million

NEW YORK – August 2, 2005 - SIRIUS Satellite Radio (NASDAQ: SIRI) today announced strong second quarter financial and operating results, driven by robust subscriber growth in its retail and automotive OEM distribution channels, and continued demand for its superior programming.

As of June 30, 2005, SIRIUS had 1,814,626 subscribers. The second quarter subscriber figure reflects net additions of 365,931 subscribers, a 184% increase over the year-ago figure of 128,678 net additions.

For the third time this year, the company is raising its 2005 year-end subscriber guidance. SIRIUS now expects to have 3 million subscribers at year-end, up from previous guidance of approximately 2.7 million subscribers. The company attributes its revised outlook to continued momentum in the retail and automotive OEM distribution channels, and expectations of strong consumer demand for SIRIUS’ exclusive programming, including the NFL, Martha Stewart Living Radio and Howard Stern, as well as the continued appeal of its commercial-free music.

“Our great second quarter results clearly indicate that momentum for SIRIUS is accelerating,” said Mel Karmazin, CEO of SIRIUS. “We beat Wall Street consensus expectations on all important metrics through a continuing focus on sound business execution, while maintaining low churn and very high levels of customer satisfaction. Plus, our automotive channel showed very strong results and consumers responded favorably to our second quarter retail promotion. Going into the second half of the year, we believe that creative new programming, additional automotive factory programs and the introduction of exciting new products will continue to drive our strong growth for the future.”

SIRIUS reported record revenue of $52.2 million for the second quarter of 2005, a 295% increase over the $13.2 million reported for the year-ago quarter. Average monthly churn during the second quarter of 2005 was 1.4%.

The company reported subscriber acquisition costs (SAC) per gross subscriber addition of $160 for the second quarter of 2005, a 32% improvement over SAC per gross subscriber addition of $234 in the year-ago quarter.

During the second quarter of 2005, SIRIUS added 244,985 net subscribers from its retail channel, a 137% increase over 103,201 retail net additions in the year-ago quarter, and a 23% sequential increase over 198,558 retail net additions in the first quarter of 2005. The company also added 121,664 net subscribers from its automotive OEM channel, a 375% increase over 25,636 net additions from that channel in the second quarter of 2004, and a 13% sequential increase over 107,855 automotive OEM net additions in the first quarter of 2005.

SIRIUS reported a net loss of ($177.5) million, or ($0.13) per share, for the second quarter of 2005 compared with a net loss of ($136.8) million, or ($0.11) per share, for the second quarter of 2004.

During the quarter, SIRIUS and the Ford Motor Company announced an agreement that extends SIRIUS' exclusive relationship with Ford through September 2011, with the option for Ford to extend the agreement through September 2013. Ford and SIRIUS also recently announced that Ford will offer SIRIUS as a factory installed option on select vehicles beginning in August of this year. Ford and Lincoln Mercury expect to generate up to one million SIRIUS subscribers over the 2006 and 2007 model years, and expect to significantly increase factory-installed volumes in the 2008 model year. DaimlerChrysler’s SIRIUS factory installation program continues to be on track, and they expect to produce more than 500,000 SIRIUS subscribers over the 2005 and 2006 model years.

SIRIUS continues to add more innovative programming to appeal to subscribers and advertisers. Beginning this month, SIRIUS will launch its second season of NFL play-by-play coverage as The Official Satellite Radio Partner of the NFL, and introduce Martha Stewart Living Radio and other new programming offerings. The company is also preparing for the arrival of Howard Stern in January 2006 and, in 2007, NASCAR.

Guidance for 2005:

Reflecting a strong first half of 2005 and the company’s expectation for continued strong subscriber growth in the second half, SIRIUS is raising subscriber guidance again to a year-end 2005 target of 3 million subscribers, up from approximately 2.7 million subscribers suggested by previous guidance.

Estimated average monthly churn is expected to be 1.5% for full year 2005 compared with previous guidance of 1.5% to 1.6%, given continued high levels of customer satisfaction. The company continues to expect SAC per gross subscriber addition to be under $145 for the full year 2005, with further declines expected in 2006.

SIRIUS expects to generate $225 million of total revenue in 2005, up from previous guidance of $215 million. The company expects to report an adjusted loss from operations of approximately ($540) million in 2005 compared with previous guidance of ($510) million, reflecting the impact on total SAC of increased subscriber growth. Total operating cash uses, capital expenditures and restricted investment activity, are expected to be approximately ($375) million in 2005, in line with previous guidance.

SIRIUS ended the second quarter of 2005 with approximately $577 million in cash, cash equivalents and marketable securities, which the company continues to believe is sufficient to reach free cash flow breakeven under its current business plan. SIRIUS’ first quarter of positive free cash flow could be reached as early as the fourth quarter of 2006, further underscoring its expectations to generate positive free cash flow for the full year 2007.

Conference Call Information:

SIRIUS will hold a conference call today at 8 am ET to discuss operating and financial results. The public, members of the investment community and the press will have live access to the conference call via the company’s website, www.sirius.com, and on the SIRIUS service by tuning to SIRIUS Channel 127. A replay of the call will also be available on the SIRIUS website.

Contacts for SIRIUS:

Jim Collins

Media

212-901-6422

jcollins@xxxxxxxxxxxxxxx

Michelle McKinnon

Analysts

212-584-5285

mmckinnon@xxxxxxxxxxxxxxx

Jaymie VanValkenburgh

Investors

212-584-5158

jvanvalkenburgh@xxxxxxxxxxxxxxx