XM to Cover MTV Video Music Awards Live

NEWS RELEASE

8/27/2002

WILL AIR EXCLUSIVE BACKSTAGE INTERVIEWS AND REPORTS

Washington D.C., August 27, 2002 -- XM Satellite Radio, America's leading satellite radio service, will cover the entire MTV Video Music Awards live on Aug. 29 and air exclusive backstage interviews and reports on two of its channels.

"XM is thrilled to carry the MTV Video Music Awards, complete with exclusive interviews with some of the major players," said Steve Gavenas, XM Executive Vice President of Programming. "XM's mission involves riding the cutting-edge of music and culture, which is also where MTV lives."

Emma Wilson, program director of XM's youth-talk channel (BabbleOn, Ch. 167), will provide exclusive, on-the-scene interviews with the various celebrities, presenters, and nominees attending this star-studded event. Throughout the night, Wilson will check in with BabbleOn during E-Town with Evan Roberts (6-9 pm EST) and What's the Word with Miss Jackson (9-11 pm), giving listeners the latest scoop at the awards show. The following morning Aug. 30, on Red Zone (10am-12 pm EST), Emma will offer a special wrap-up program featuring recaps of the many unpredictable interviews she conducted throughout the show.

XM will air the entire MTV Video Music Awards live on its MTV radio channel (Ch.25), beginning with a live simulcast of the MTV News VMA Pre-show at 6:30 pm EST, followed by live coverage of the VMA's at 8 pm, and a wrap-up of the night's events during the MTV News 2002 VMA Post Show. MTV radio host Yvonne Velazquez will conduct live interviews with the stars, as well as cover all the wild backstage action throughout the telecast and during the televised broadcast cuts to commercial breaks.

During the days leading up to the show, XM MTV radio will air a series of original programming highlighting all

1 facets of the MTV Video Music Awards from its 18-year history to the 2002 nominees.

XM (Nasdaq: XMSR) had approximately 137,000 subscribers as of June 30, 2002, and is on track to reach 200,000 subscribers by Sept. 30 and 350,000 subscribers by year end. XM is transforming radio, an industry that has seen little technological change since FM, almost 40 years ago. XM's programming lineup features 100 coast-to-coast digital channels: 71 music channels, many of them commercial-free, from hip hop to opera, classical to country, bluegrass to blues; and 29 channels of sports, talk, children's and entertainment. XM was named 2001 "Product of the Year" by Fortune, an "Invention of the Year" by Time and won Popular Science's 2001 "Best of What's New" Grand Award in the electronics category. XM won several awards at the 2001 CES, including "Best of CES" in the automotive category, and received a coveted "A" rating from Entertainment Weekly.

XM radios are available at major electronics retailers nationwide. Leading manufacturers such as Sony, Alpine, Pioneer and Alpine and Audiovox offer a broad array of XM radios that easily enable any existing car stereo system. General Motors recently began factory-installing XM radio across 25 different 2003 models including household brand names such as: Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac. Isuzu dealers now offer XM radios to buyers of their Axiom and Rodeo models. XM will be available as an option this coming fall on six Infiniti and Nissan 2003 models as well as future Audi and Volkswagen models.

XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. For more information, please visit XM's web site: 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 the company's service, the company's dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form S-3 filed with the Securities and Exchange Commission on 6-21-2002. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.

XM Press Contacts: Charles Robbins 202-380-4316 Phone [email protected]

Kristine Ludecke 202-380-4132 Phone [email protected]