XM Satellite Radio Sees Lower Subscriber Growth

XM Satellite Radio lowered its subscriber and financial guidance for 2006, projecting that it will end 2006 with 8.5 million subscribers, resulting in subscriber revenues of $835 million and EBITDA loss (excluding stock-based compensation, other income/expense, equity in net losses of affiliates, and loss from de-leveraging transactions) of $235 million.



The revised guidance of 8.5 million subscribers represents growth of more than 40 percent over the course of the year. The revised subscriber guidance leads to a reduction in subscriber revenues and a narrower EBITDA loss for the year.



XM now expects to add a total of more than 2.5 million net new subscribers this year.



XM ended 2005 with 5,932,957 subscribers, and the company added more than 568,000 net new subscribers during the first quarter of 2006 for a total of more than 6.5 million subscribers.



"Although XM has regained retail market share since the first of the year, the satellite radio category has seen an overall softness at retail during the second quarter to date, and we have been later than anticipated with broad availability of our new products," said Hugh Panero, President and CEO of XM Satellite Radio.

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