January 22, 2001

Satellite radio will break the rules of traditional radio broadcasting with the introduction of hundreds of new radio channels to be broadcasted nationally via satellite, according to the Yankee Group's Report, "Satellite Radio: A New Star on Broadcasting's Horizon". The report projects growth of 1 million installed receivers one year after product launches, eclipsing 21 million receivers after five years.

According to Yankee Group analyst Ryan Jones, "Satellite radio's fee-based programming is a revolutionary concept in the radio world's all-digital service, featuring more variety and fewer ads than traditional radio - similar to cable TV going against free broadcast TV 30 years ago." Product launches are anticipated later this year.

The Yankee Group believes consumers will adopt the product, bypassing stigmas associated with monthly fees because satellite radio offers distinct advantages of national coverage, digital sound quality, and content variety.

The Report draws upon the Yankee Group's recent Home Entertainment Survey, which measured consumer opinions on a variety of technology applications. Key findings and forward-looking analysis include:

* Demand for Change. Over 25% of "public listeners" and 50% of "heavy listeners" expressed interest in radio with fewer commercials and more variety. Two emerging satellite radio providers will offer approximately 100 channels of content and plan to significantly reduce advertising time.

* Easily Recognizable Benefits. The value of satellite radio is easily identifiable. Consumers are offered more programming choice with clearer sound and nationwide coverage-all while operating like a standard car radio.

* Enormous Distribution Potential. Satellite radio companies are focused on the U.S. automotive industry-and for good reason. Over 17 million new cars are sold each year, and the aftermarket mobile audio industry sells 11 million receivers each year, providing tremendous distribution potential to a market of over 180 million drivers.

For more information at http://www.yankeegroup.com

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