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Monday, October 30, 2006

Market Turns Its Back on Sirius and XM Premium Auto Deals

Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) have each issued high-end deal announcements today, although neither deal will add a significant number of net subscribers.

Sirius (SIRI) has announced that Bentley Motors will use Sirius exclusively in the 2007 models. "All vehicles equipped with SIRIUS will include a lifetime subscription to the service, which will enhance each Bentley's individual customization and give each customer a new vehicle experience," said Andrew Stuart, CEO for Bentley Motors Inc.

XM (XMSR) has also announced that Porsche will use XM Radio as its sole supplier for satellite radio systems starting in 2007. "XM has the technology and content that is consistent with Porsche's commitment to providing our customers the best possible driving experience," said Peter Schwarzenbauer, President and CEO, Porsche Cars of North America. "We are very pleased to be expanding our partnership with XM."

The street doesn't seem to care because the deals will be small add-on deals incrementally. Both stocks are trading lower with Sirius (SIRI) down 1.8% at $3.78 and with XM Satellite (XMSR) down 5.7% at $11.27.

Jon C. Ogg
October 30, 2006

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