NEWS RELEASE

REGGAETON MUSIC CHANNEL LAUNCHES ON XM SATELLITE RADIO

8/16/2005

ALEGRIA (XM CHANNEL 90) EXPANDS FORMAT TO FOCUS ON FAST-GROWING GENRE; NEW PROGRAMS INCLUDE IMF TV CHANNEL'S "IMF BODEGA BEATS" HOSTED BY B-REAL OF CYPRESS HILL

Washington D.C., August 16, 2005 -- XM Satellite Radio, the nation's leading satellite radio company with more than 4.4 million subscribers, today announced that its hits channel Alegria (XM channel 90) will focus its format on Reggaeton, the hugely popular .

Reggaeton music will now make up the majority of the tracks played on the Alegria channel. Like all XM music channels, Alegria is commercial-free. The channel is produced by XM's award-winning programming staff. New programs on Alegria include an exclusive audio version of IMF: The International Music Feed's Reggaeton program "IMF Bodega Beats," which is hosted by Hip Hop star B-Real of Cypress Hill.

"XM has a very strong commitment to Latin music, so it makes sense for us to focus one of our channels on Reggaeton," said Eric Logan, Executive Vice President of Programming, XM Satellite Radio. "Reggaeton is incredibly popular, yet it doesn't get as much exposure in the U.S. as it deserves. Part of our mission at XM is to deliver the greatest variety of music to people from coast to coast, and we saw a real need to expand the Reggaeton music on XM to become the primary format of our Alegria channel."

"We are very excited to work with XM to bring the fast-growing Reggaeton music genre to millions of people across the ," said Andy Schuon, President & CEO of the 24-hour music television channel IMF. "The popularity of Reggaeton has exploded, but there are many fans across the country who can't hear Reggaeton on the radio. XM

1 is the first to focus an entire national radio channel on this exciting genre."

The rising popularity of Reggaeton has been the subject of recent articles in USA Today, Washington Post, Miami Herald, and other leading media.

In addition to Alegria, XM offers three other commercial-free channels devoted to Latin music: Aguila (XM Channel 92), which plays music, Caliente (XM Channel 94), which offers tropical music, and Luna (XM channel 95), which plays .

Today also marks the launch of XM Deportivo (XM Channel 147), the Spanish-language sports channel created by XM and legendary sports broadcaster Andres Cantor.

XM also offers the Spanish-language news channel CNN EN Espanol (XM Channel 134) and MLB En Espanol (XM Channel 190), which delivers Spanish play-by-play of Major League Baseball games and baseball talk programming.

About XM Satellite Radio

XM is America's number one satellite radio service with more than 4.4 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM's 2005 lineup includes more than 150 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 21 channels of the most advanced traffic and weather information. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 120 different vehicle models for 2005. 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-K filed with the Securities and Exchange Commission on 3-4-05. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

2 XM Contact:

David Butler Phone: 202-380-4317 [email protected]

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