The dividend is payable in shares of the Company's Class A Common Stock at a rate of $1.0313 per share of Series B Preferred Stock owned, with fractional shares to be paid in cash. The shares of Class A Common Stock to be issued will be valued at 95% of the average daily price of the Class A Common Stock for the 10 consecutive trading days ending on July 16, 2001. The dividend is payable on August 1, 2001, to Series B convertible preferred stockholders of record of XM Satellite Radio Holdings Inc. as of July 22, 2001.

Last week, XM's second satellite, "Roll," was formally handed over to XM by Boeing Satellite Systems, completing the constellation. The satellite, launched May 8, is performing beyond expectations, like its twin "Rock." Both satellites are broadcasting signal as part of the preparation for XM's commercial launch. By using two powerful satellites, each with the same nationwide coverage, XM will ensure maximum signal and system reliability.

XM will transform radio, an industry that has seen little technological change since FM, almost 40 years ago. XM will offer up to 100 channels of digital-quality sound and provide coast-to-coast coverage of music, news, sports, talk, comedy and children's programming. Commercial service is scheduled to begin late this summer.

Link for more info: www.xmradio.com