XM INKS EXCLUSIVE AGREEMENT TO PROVIDE
SERVICE IN GM VEHICLES

Clear Channel Communications Inc., DirecTV, GM, and a private investment group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison Dearborn Partners hit the accelerator on the emerging satellite radio market by making a $250 million combined investment commitment in XM Satellite Radio Inc. The announcement was made by Hugh Panero, President and CEO of XM.

XM is a revolutionary new band of radio that will capitalize on direct satellite-to-receiver broadcasting technology to provide listeners in the car and at home with up to 100 channels of music, news, and entertainment available coast-to-coast with digital-quality sound. C.E. Unterberg, Towbin recently estimated the market for satellite radio to be over $2 billion by 2005.

In addition to the investment deal, XM also announced a long-term distribution agreement with GM. GM will exclusively distribute and market XM service in GM vehicles. GM will factory install AM/FM/XM-compatible radios, manufactured by XM's consumer electronics partners, in both cars and trucks.