Sirius Satellite Radio Announces Expanded Service

Reprinted from a Sirius press release:

NEW YORK, May 14 /PRNewswire-FirstCall/ — Sirius Satellite Radio (NASDAQ: SIRI) , the satellite radio broadcaster, today announced service will be available beginning tomorrow in 10 additional states, bringing the total number of states to 28.

“As part of our accelerated nationwide service roll out, Sirius will launch on May 15 in Alabama, Indiana, Kentucky, Michigan, Mississippi, Ohio, Tennessee, Texas, West Virginia and Wisconsin” said Guy Johnson, Executive Vice President, Sales and Marketing, for Sirius. “As of tomorrow, we will be available in more than half of the United States and are expanding into the southeastern part of the country. Sirius is on target for our expected nationwide service availability date of July 1.”

Service is already available throughout the western and midwestern parts of the country including Arizona, Arkansas, Colorado, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, South Dakota, Utah and Wyoming.

Sirius radios can be purchased at national retail stores such as Circuit City and Best Buy, as well as local car and audio retailers in selected markets.

Cash Position

On March 31, 2002, Sirius had $423 million in cash, cash equivalents, marketable securities and restricted investments.

For the three months ended March 31, 2002, the company reported a first quarter 2002 EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash stock compensation) loss of $45.3 million and a net loss applicable to common stockholders of $90.1 million, or $1.22 per share. The company’s 2002 first quarter net loss applicable to common stockholders included a $9.0 million non-cash benefit resulting principally from the previously announced repricing of certain employee stock options. In comparison, for the first quarter of 2001, Sirius reported an EBITDA loss of $36.3 million and a net loss applicable to common stockholders of $64.4 million, or $1.34 per share.