New Grateful Dead Channel Exclusively on SIRIUS Satellite Radio

Highly anticipated channel will feature original radio shows hosted by members of the band, rare concert performances and insider interviews.

NEW YORK, Aug. 29 /PRNewswire-FirstCall/ — SIRIUS Satellite Radio today announced the launch of the highly anticipated Grateful Dead Channel. Heard exclusively on SIRIUS, the channel will feature music spanning the Grateful Dead’s long and celebrated history. The channel will include rare and unreleased performances, original shows hosted by Grateful Dead founders Bob Weir, Phil Lesh, Mickey Hart and Bill Kreutzmann, as well as rare archival interviews with Jerry Garcia.

The Grateful Dead Channel will make its debut on September 7 at 12 pm ET on SIRIUS channel 32 with an extremely rare concert broadcast of the band’s 1974 performance at the Hollywood Bowl in Los Angeles, California. This performance will be followed by a special show hosted by Bob Weir, the first by a member of the Grateful Dead on the new channel. The channel will also feature contributions from Grateful Dead expert David Gans, as well as Dead archivist David Lemieux, who will provide a unique look into the Dead’s lush past with daily insights.

“Since we announced the launch of the Grateful Dead Channel, it has become one of the most anticipated music channel launches in our history.” said Scott Greenstein, President, Entertainment and Sports, SIRIUS. “The loyalty and passion of Grateful Dead fans are the truest testament to the band’s legacy. Sirius is thrilled to bring exclusive content to this community and welcomes their continued participation as Sirius becomes part of the Grateful Dead family.”

“This is gonna be one fun channel,” said the Dead’s Bob Weir. “We, the guys in the band, get to be involved as much as we can and we’ll make sure it’s fun. We want the fans to be involved as well.”

The Grateful Dead formed in mid 1960’s San Francisco’s psychedelia and quickly became a staple in the local music scene. The historic summer of 1967, known as ‘The Summer of Love,’ is when the band first found world wide recognition as thousands of young people from around-the-world made their way to San Francisco’s Haight and Ashbury district to find a new social experience. The Dead, well-known for constantly touring, kept the experience alive for another three decades with a devoted community of fans, many of whom traveled the country with them.

The Grateful Dead Channel joins an exclusive line up of 24-hour, commercial-free music channels dedicated entirely to some of the world’s greatest recording artists including Elvis Radio, the world’s only official, all-Elvis Presley radio channel broadcasting live from Graceland; and Siriusly Sinatra, devoted to the music and legacy of Frank Sinatra. SIRIUS has previously dedicated channels exclusively to the music of Bruce Springsteen and the E Street Band, The Rolling Stones, David Gilmour and Pink Floyd, George Strait, and most recently, The Who. SIRIUS is also the exclusive radio home of Shade 45, the uncut hip-hop channel co-created with Eminem, “Little Steven” Van Zandt’s Underground Garage, channel 25, and Jimmy Buffett’s Radio Margaritaville, channel 31.

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.

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.

Satellite radio

A satellite radio or subscription radio (SR) is a digital radio signal that is broadcast by a communications satellite, which covers a much wider geographical range than terrestrial radio signals.

Satellite radio is currently at the forefront of the evolution of radio services in some countries, notably the United States. Mobile services, such as Sirius, XM, and Worldspace allow a listener to roam across an entire continent, listening to the same audio programming anywhere he goes. Other services, such as Music Choice or Muzak’s satellite-delivered content require a fixed-location receiver and a dish antenna. In all cases, the antenna must have a clear view to the satellites. In areas where tall buildings, bridges, or even parking garages obscure the signal, repeaters can be placed to make the signal available to listeners.

Radio services are usually provided by commercial ventures, and are subscription-based. The various services are proprietary signals, requiring specialized hardware for decoding and playback. Providers usually carry a variety of news, weather, sports, and music channels, with the music channels generally being commercial-free.

In areas with a relatively high population density, it is easier and less expensive to reach the bulk of the population with terrestrial broadcasts. Thus in the UK and some other countries, the contemporary evolution of radio services is focused on Digital Audio Broadcasting (DAB) services, such as HD Radio rather than satellite radio.

Satellite radio providers

United States

In North America, there are two satellite radio companies, XM Satellite Radio and Sirius Satellite Radio. These two former rivals have announced their intention to merge, which would create a single satellite radio entity in the United States with nearly 14 million subscribers.

Canada

XM Canada and Sirius Canada, operated as separate entities from their American counterparts with 51% ownership by different Canadian companies, may eventually merge as well. Sirius Canada’s market share is slightly more than that of XM with 300,000 and 270,000 paid subscribers respectively. XM Canada owns a lucrative contract with the NHL, which it feels would bring a great deal to the merged company in hockey-crazed Canada.

Europe, Asia, and Africa

WorldSpace is the sole mobile satellite radio provider in Asia and Africa, and seeks to expand into Europe. ONDAS Media S.A., based in Madrid, plans to be Europe’s first and premier digital satellite-based provider of multilingual radio, video, and other data and telematics services primarily to vehicles and hand-held mobile devices.

The European Space Agency, however, has unveiled a plan and a prototype to use pre-existing satellites to construct a satellite radio service. The satellites were part of Europe’s original satellite TV system, and are nearing the end of their operational lives. As satellite radio doesn’t require the exact satellite positioning that a dish-based TV system does, their lives can be extended even though the satellites are drifting out of their original orbits.

Other areas

Areas outside of the Worldspace, XM, or Sirius footprint, including Australia, New Zealand, and the Hawaiian Islands, do not yet have access to mobile satellite radio services. There are several satellite TV services which operate in these areas and can provide audio programming via dish antennas.

Business applications

Satellite radio, particularly in the United States, has become a major provider of background music to businesses such as hotels, retail chains, and restaurants . Compared to old-line competitors such as Muzak, satellite radio’s significantly lower price, commercial-free channel variety, and more reliable technology make it a very attractive option. Both North American satellite radio providers offer business subscriptions, though given the merger of XM Satellite Radio with Sirius, the future of XM for Business is uncertain. Sirius’ commercial services are provided nationally by third-party partner Applied Media Technologies Corporation .

System design

Satellite radio uses the 2.3 GHz S band in North America, and generally shares the 1.4 GHz L band with local Digital Audio Broadcasting (DAB) stations elsewhere. It is a type of direct broadcast satellite, and is strong enough that it requires no satellite dish to receive. Curvature of the Earth limits the reach of the signal, but due to the high orbit of the satellites, two or three are usually sufficient to provide coverage for an entire continent.

Local repeaters similar to broadcast translator boosters enable signals to be available even if the view of the satellite is blocked, for example, by skyscrapers in a large town. Major tunnels can also have repeaters. This method also allows local programming to be transmitted such as traffic and weather in most major metropolitan areas, as of March 2004.

Each receiver has an Electronic Serial Number (ESN)-Radio ID to identify it. When a unit is activated with a subscription, an authorization code is sent in the digital stream telling the receiver to allow access to the blocked channels. Most services have at least one “free to air” or “in the clear” (ITC) channel as a test. For example, Sirius uses channel 184 “Sirius Weather & Emergency”.

Most (if not all) of the systems in use now are proprietary, using different codecs for audio data compression, different modulation techniques, and/or different methods for encryption and conditional access.

Like other radio services, satellite radio also transmits program-associated data (PAD or metadata), with the artist and title of each song or program, and possibly the name.