Sirius Satellite Radio, the satellite radio broadcaster, announced Wednesday it will launch its service on February 14, 2002, in leading metropolitan markets Houston, Denver and Phoenix.

Interim co-CEO and Chief Financial Officer John Scelfo commented, "This is a big day for Sirius. We worked closely with our hardware and retail partners to select our launch markets based on commuter data, retail spending patterns and marketing opportunities. Our testing has shown excellent results and we know consumers will be happy with the service. With our infrastructure fully in place, strong relationships with our retail, electronics and automotive partners, and key competitive market differentiators like 100 percent commercial free music and completely original music programming, we will offer consumers a great value and a great product."

Sirius' launch markets feature large commuter bases, early adopters of technology, favorable attitudes towards mobile electronic products and strong retail environments. The three markets encompass approximately 10.5 million people, including over 1.4 million commuters who spend at least an hour a day driving to work.

Consumers will be able to purchase Sirius receivers in more than 200 storefronts, including major consumer electronics outlets like Circuit City, Best Buy, Good Guys, Ultimate Electronics, Car Toys, Audio Express and Crutchfield. Advertising, retail marketing, public relations, event marketing and online and direct marketing will support the launch plans.

"Kenwood, Panasonic, Jensen and Clarion will have units rolling off the assembly line and onto store shelves in advance of our service launch," said Doug Wilsterman, VP Marketing and Distribution.

"We view today's launch announcement and results from the company's testing as a strong endorsement of the quality of the Sirius service," said Bob Law, VP, Sales and Marketing, Kenwood USA. "We are working closely with Sirius to make satellite radio a reality for our customers."

The company expects to announce the next phase of its rollout in early January at the Consumer Electronic Show in Las Vegas.

Consumer test results
At the end of October Sirius expanded its in-vehicle testing. This testing was designed to complete the evaluation of all aspects of the company's product and transmission, distribution and system capabilities, including retail sales support, installation, subscriber management and billing, customer service and communications.

During drive testing, Sirius was able to compile critical objective and subjective data from numerous drive routes across the country. User feedback on the quality of the service was measured by factors including sound quality, installation, reception, customer service and programming.

Scelfo commented, "The overall results met or exceeded our demanding performance criteria. We were particularly pleased with the input from a consumer standpoint because it overwhelmingly demonstrated consumers' endorsement of our 100 percent commercial-free music and strong news and entertainment line-up."

Programming
Sirius also announced that it has expanded its music lineup to include 60 channels of 100% commercial free music, all originally produced at the company's national broadcast studio. Sirius will offer its customers the richest music experience available anywhere. Sirius' channel mix also includes 40 channels of sports, news and entertainment programming, including such major brands as CNBC, CNN Headline News, Fox News, ESPNews, Discovery and A&E.

OEM relations
Over the last three months the company has made progress and advanced its position with these key partner groups.

Highlights include:

• BMW's commitment to introduce Sirius in its most popular vehicle lines in 2002
  
  
• An agreement that will make Sirius radios available to Porsche customers in 2003
  
  
• Significant new senior additions, including SVP of Engineering Mike Ledford, formerly of Ford, and new member of the board of directors, former Chrysler President James Holden

From its three satellites orbiting directly over the U.S., Sirius will broadcast 100 channels of digital quality radio to motorists throughout the continental United States for a monthly subscription fee of $12.95. Sirius will deliver 60 original channels of completely commercial-free music in virtually every genre, and 40 channels of sports, news and entertainment programming. Sirius has exclusive alliances to install AM/FM/SAT radios in Ford, Chrysler, BMW, Mercedes, Jaguar, Volvo, Mazda, Dodge and Jeep vehicles. Kenwood, Panasonic, Clarion and Jensen satellite receivers, including models that can adapt any car stereo to receive Sirius, as well as home and portable products, will be available at retailers such as Circuit City, Best Buy, Good Guys, Tweeter and Crutchfield.