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CANADIAN SATELLITE RADIO PROVIDES INITIAL GUIDANCE ON SUBSCRIBER NUMBERS

CSR projects one million subscribers in 2010 and 75,000 subscribers by August 2006 for its XM Canada service

CNW

Canadian Satellite Radio Holdings Inc., which offers its satellite radio service and operates under the XM Canada™ brand, will discuss its initial guidance for anticipated subscriber numbers at the 2006 Consumer Electronics Show in Las Vegas on January 6.

 

CSR, which launched its XM Canada™ service on November 22, 2005, projects to end the nine-month period to August 31, 2006, the close of the company's 2006 fiscal year, with 75,000 subscribers. CSR projects to achieve one million subscribers by August 31, 2010.

 

"To date, our subscriptions are running ahead of management expectations, but we maintain a position of providing prudent guidance to the market, potential investors and our shareholders," said John I. Bitove, the CEO of CSR and XM Canada.

 

"We are excited to be a Canadian public company participating in the world's largest trade show, where the technological changes that consumers will embrace in the near future are on display," added Bitove.

 

The guidance figures provided are based on subscriptions to date, management projections of future subscriptions, auto manufacturers' factory installs and the growth of XM Satellite Radio Inc. subscriptions in the U.S. XM Canada™ has an exclusive Canadian licence from XM Satellite Radio, the leading satellite radio provider in the U.S. with more than six million subscribers.

 

Bitove will provide the CSR guidance figures during an XM Satellite Radio investor forum at CES.

 

"Although many will consider CSR's projection of one million subs by 2010 a very conservative number, given our brief history as a public company, we prefer to be conservative," said Bitove.

 

On January 4, 2006, XM Satellite Radio projected that it would exceed nine million subscribers in the U.S. by the end of 2006 based on new breakthrough products (see Leveraging XM announcements below), its powerful content line-up and growth in the factory-installed new car market.

 

Leveraging XM announcements

 

CSR and XM Canada™ expect to eventually leverage and benefit from numerous recent announcements by XM Satellite Radio Inc. and hardware manufacturers. The announcements include:

 

  • Samsung announced three new portable audio models that combine the content and capabilities of XM radio and a high-quality MP3 player for the ultimate digital music experience.

 

  • Pioneer Electronics (USA) unveiled a portable XM2go satellite radio that plays live satellite radio "on the go" and both MP3s and WMAs, heralding a major milestone in personal audio.

 

  • XM Satellite Radio is introducing the XM Advanced Services vehicle at the 2006 Consumer Electronics Show. Working with several partners, this concept car features in-car video (On2 Technologies), voice command (VoiceBox® Technologies), weather alerts (WxWorx), parking spot locator (Nu-Metrics, Inc. and InfoGation) and other innovations.

 

  • Audiovox presented the XM Passport, a tiny portable tuner that delivers XM to an expanded selection of XM-ready products for home, auto and portable use utilizing XM Connect and Play technology.

 

  • Advanced Global Technology, LLC (AGT) introduced the Sportscaster™, the latest plug and play satellite radio for enjoying XM in the car, at home or on the go. The receiver has unique functions and portable options designed for sports fans.

 

"CSR and XM Canada™ are excited about all of these new products and technological developments for XM listeners throughout North America, and we will work with XM, manufacturers and retailers to bring the receivers into Canada as soon as possible," said Stephen Tapp, XM Canada's President and Chief Operating Officer.

 

About Canadian Satellite Radio Holdings Inc.

Canadian Satellite Radio Holdings Inc. operates as XM Canada™ through its subsidiary, Canadian Satellite Radio Inc. CSR creates unique Canadian content to be broadcast in Canada and the United States and has an exclusive Canadian licence from U.S.-based XM Satellite Radio Inc., the leading satellite radio provider in the U.S. with more than six million subscribers.

 

CSR, through XM Canada™, offers listeners more than 80 channels for Canada's lowest monthly subscription fee - $12.99. XM Canada™ offers the most commercial-free music channels and the most NHL game coverage, and news, talk, sports and children's programming across Canada. XM Canada™ launched its French and English satellite channels for all of North America to hear on November 22. After next season, XM will become the exclusive provider of NHL hockey on satellite radio.

 

Forward-looking statements

Any forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to a number of risks including those associated with the business of CSR, the proposed note offering by CSR, regulatory matters, and CSR's relationship with XM. CSR assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.

 

The financial information contained in this news release is unaudited, unless otherwise noted. Additional information identifying risks and uncertainties are contained in CSR's filings with the Canadian securities regulators, available at www.sedar.com.

 

For more information about CSR, visit www.cdnsatrad.com. For more information about XM Canada's satellite radio service, visit www.xmradio.ca.

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