CD Radio to Offer Two Million Shares of Common Stock and $125 Million in Convertible Debt.

NEW YORK--(BUSINESS WIRE)--Sept. 14, 1999--

CD Radio Inc. (Nasdaq: CDRD) announced today that it has launched concurrent offerings of two million shares of common stock and $125 million of ten-year convertible subordinated notes. The securities to be offered are covered by a $500 million universal shelf registration statement the company previously filed with the SEC. The proceeds will be used for the continued buildout of CD Radio's satellite-to-car radio broadcast system and for general corporate purposes.

CD Radio is building a digital satellite radio system that will broadcast up to 100 channels of music and other programming to motorists throughout the continental United States. The company plans to offer 50 channels of commercial-free music and up to 50 channels of news, sports and entertainment programming for an anticipated monthly subscription fee of $9.95. Operations are scheduled to commence at the end of the fourth quarter of 2000.

The final amount and terms of the securities will be determined at the time of pricing the respective offerings. The company's shelf registration statement has been filed with the SEC but is not yet effective. The securities may not be sold nor may offers to buy be accepted until the registration statement is effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Offers to sell the securities will be made only by means of a prospectus.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in CD Radio's Annual Report on Form 10-K for the year ended December 31, 1998. Among the key factors that have a direct bearing on CD Radio's results of operations are the potential risk of delay in implementing CD Radio's business plan; increased costs of construction and launch of necessary satellites; dependence on satellite construction and launch contractors; dependence on Lucent Technologies; risk of launch failure; unproven market and unproven applications of existing technology; unavailability of CD Radio receivers; and CD Radio's need for additional financing.