SIRIUS AND MICROSOFT TO COLLABORATE TO DEVELOP VIDEO SERVICE
SIRIUS Selects Windows Media Video 9 for Mobile Video Service

NEW YORK and LAS VEGAS, NV - January 5, 2005 - SIRIUS Satellite Radio (NASDAQ: SIRI) today announced at the Consumer Electronics Show in Las Vegas that it has selected Windows Media Video 9 for use in SIRIUS' mobile video platform, and has reached an agreement with Microsoft to collaborate in the further development of video applications.

SIRIUS plans to offer a video service in the second half of 2006, and expects to devote 2-3 channels of premium video content designed primarily for children. With the explosive growth of DVD sales, video capabilities in automobiles are quickly becoming a prime feature for families and travelers. The automobile industry is increasingly interested in offering entertainment features to their new car buyers. According to SIRIUS, its automotive partners are eager proponents of the service, given the strong demand for rear seat video entertainment.

"We will take the DVD experience to the next level, offering the best content easily available to families and consumers," said Mel Karmazin, CEO of SIRIUS.  "Working together with Microsoft will help ensure the exciting development of a solid and user friendly video platform for SIRIUS for years to come." 

"We are excited to be working with SIRIUS on its new mobile video service that will be delivered using our technology," said Amir Majidimehr, Corporate Vice President of the Windows Digital Media Division at Microsoft.  "We will further work together to enable consumers to experience SIRIUS video whether on the go or at home -- from the initial mobile service in vehicles to the PC and home entertainment devices."

According to Microsoft, the high-quality and compression efficiencies of this technology are well suited for reception of video in mobile environments. SIRIUS broadcasts over 120 channels of commercial free music, news, talk and entertainment programming, and the addition of its video channels are not expected to affect the current audio fidelity of the company's existing channels.

"Working with Microsoft to utilize the compression efficiencies inherent to WMV9 will enable SIRIUS to deliver content optimized for satellite broadcasts and reception," said Jim Meyer, President of Operations and Sales for SIRIUS.