Bad news for merger opposition

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Free Shit / Socialism 2016
Dec 20, 2004
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Former FCC Chairman, Mark Fowler, Calls for Approval of Satellite Radio Merger

Chides Broadcast Lobbyists for Opposing Increased Competition in the Audio Entertainment Market
September 05, 2007: 11:05 AM EST


WASHINGTON and NEW YORK, Sept. 5 /PRNewswire-FirstCall/ -- XM Satellite Radio and SIRIUS Satellite Radio today announced the support of Former FCC Chairman, Mark Fowler, for their pending merger.

"We are extremely pleased to receive support from one of the most highly regarded thought leaders in the communications industry," said Gary Parsons, Chairman of XM, and Mel Karmazin, CEO of SIRIUS, in a joint statement. "As the longest serving Chairman of the FCC in our nation's history, Mr. Fowler has had a lasting impact on global communications. His backing of this merger further illustrates the benefits a combined SIRIUS and XM will bring to audio entertainment consumers."

Since the FCC opened its docket on the merger, more than 4,300 individuals have filed in support of combining the two companies. The FCC docket also includes positive comments from over 30 organizations and businesses, representing a broad spectrum of Americans.

The text of Mr. Fowler's opinion piece, published today in the New York Sun, reads as follows:


As chairman of the Federal Communications Commission in 1981, I was
visited by a lobbyist for the broadcast industry. Over-the-air
broadcasters vehemently opposed the FCC's authorization of Direct
Broadcast Satellite television services, and the lobbyist quickly launched
into his preamble: "We are all for competition, Mr. Chairman, but... "

Meaning, "forget what I said up to the word 'but,' and now listen
carefully..."

In observing the broadcasters' intense negative reaction to the proposed
merger of the two satellite radio companies, XM and SIRIUS, it struck me
that little has changed in 26 years. Each year, the skies over Washington
darken as the Lear jets bring industry lobbyists to the latest battlefront
against competition and its offshoot -- mergers that enhance competition.

In 1981, we were only beginning to envision the possibilities of
satellite-delivered entertainment media services. Twenty-six years later,
we live in an entertainment media marketplace that features a striking --
and exciting -- competitive dynamic beyond anything we could have
envisioned. Although traditional over-the-air radio remains the most
dominant audio entertainment platform, continued technological innovation
has forced broadcasters to confront that they must offer better service
and more choices to consumers if they are to compete and survive.

Satellite radio offers a perfect example of the phenomenon. Although it is
a relatively nascent service, launched a little more than five years ago,
satellite radio today offers diverse programming targeted to many
audiences and tastes, largely on a commercial-free basis, using very
high-quality digital signals.

And, in spite of the fact that satellite radio constitutes only 3.4% of
radio listening today, traditional over-the-air radio operators have
understood the potential threat and have had no choice but to compete, and
have been dragged, albeit kicking and screaming, into the digital age.

Thus, the broadcast industry recently introduced and is pushing its own
"HD Radio" initiative to allow radio stations across the country to offer
multiple new, high-quality digital channels.

This is all to consumers' benefit. In the mean time, satellite and
terrestrial radio also have been besieged by a host of additional
competitors: iPods and other MP3 players, Internet radio services, and now
mobile phones. All offer exciting new means of providing audio
entertainment to consumers.

That is how things should be. Indeed, it is the precise dynamic that
American communications and entertainment media policy should continue to
foment. If the two satellite radio companies, each only several years old,
need to combine to be more effective competitors in an audio entertainment
marketplace teeming with technological change and innovation, the
government should not stand in the way.

In the end, satellite radio may or may not survive, but let that be
decided by the people through their electronic choices in the marketplace.

Mark Fowler served as Chairman of the Federal Communications Commission
during the administration of President Ronald Reagan


More information on the SIRIUS-XM merger can be found at http://www.siriusmerger.com or http://www.xmmerger.com.

About SIRIUS

SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR and NBA, and broadcasts live play-by-play games of the NFL and NBA, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV(tm) is the first ever live in-vehicle rear seat entertainment featuring three channels of children's TV programming, including Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of $6.99 plus applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available in more than 20,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.

SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln, Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to SIRIUS Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission. Among the significant factors that could cause our actual results to differ materially from those expressed are: our pending merger with XM Satellite Radio Holdings, Inc. ("XM"), including related uncertainties and risks and the impact on our business if the merger is not completed; any events which affect the useful life of our satellites; our dependence upon third parties, including manufacturers of SIRIUS radios, retailers, automakers and programming providers; and our competitive position versus other audio entertainment providers.

About XM

XM is America's number one satellite radio company with more than 8.2 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. 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.

Important Additional Information Will be Filed with the SEC

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS filed with the SEC an amended Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of SIRIUS and XM plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of SIRIUS and XM. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at http://www.sec.gov. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained by directing a request to SIRIUS Satellite Radio Inc., 1221 Avenue of the Americas, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite Radio Holdings Inc., 1500 Eckington Place, N.E. Washington, DC 20002, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on April 23, 2007, and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007 and its proxy statement for its 2007 annual meeting of shareholders, which was filed with the SEC on April 17, 2007. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Joint Proxy Statement/Prospectus and other relevant materials filed with the SEC.


Contacts:

SIRIUS
Media Relations
Patrick Reilly
212-901-6646
PReilly@siriusradio.com

Joele Frank / Eric Brielmann
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
ebrielmann@joelefrank.com

XM
Media Relations
Nathaniel Brown
212-708-6170
Nathaniel.Brown@xmradio.com

Chance Patterson
202-380-4318
Chance.Patterson@xmradio.com
Looks like this thing is getting more and more supporters