Calian's Systems Engineering Division Wins Follow-On Contract for XM Satellite Radio Uplink Authorization System.

Business Editors

KANATA, Ont.--(BUSINESS WIRE)--April 4, 2000

Calian (TSE:CTY.) is pleased to announce that its Systems Engineering Division (SED) has been awarded the Uplink Authorization System contract from XM Satellite Radio Inc. (NASDAQ:XMSR).

Under the terms of the contract, SED will design, manufacture and install the Uplink Authorization System that provides authorization of conditional access for subscriber radios to the XM Satellite Radio broadcasts.

XM Satellite Radio is developing a new band of radio for the United States. Starting in first half of 2001, XM Radio will offer up to 100 channels of digital-quality music, news, sports, talk and children's programming, which will be transmitted directly from the company's powerful satellites to vehicle, home and portable XM-Ready radios coast-to-coast for a monthly subscription fee of $9.95. XM Radio will offer a broad selection of listening choices created by its XM Originals programming unit and by premier brand-name content providers, including USA TODAY, NASCAR, the BBC World Service, Black Entertainment Television, the Hispanic Broadcasting Corporation (formerly Heftel), Bloomberg News Radio, C-SPAN Radio, CNN/Financial Network, CNN/Sports Illustrated, The Weather Channel, One-On-One Sports and many others.

SED's Uplink Authorization System (UAS) is an integral part of the XM Radio infrastructure, and works in conjunction with the Uplink Delivery System previously contracted to SED by XM Satellite Radio. The Uplink Authorization System will be located at XM's headquarters in Washington, DC.

"The UAS project extends our partnership with XM Radio, and enhances our product offerings in satellite broadcast technologies," commented Ray Basler, Vice President and General Manager. "It reinforces our position as one of the world's leading providers of ground-based equipment for digital satellite radio applications," said Basler.

XM Radio is backed by a group of industry-leading strategic investors, including General Motors, Clear Channel Communications and DIRECTV, respectively the leading car, radio and satellite TV companies in the US. XM Radio has agreements with nine leading consumer electronics companies to manufacture and distribute radios capable of receiving the XM Radio signal, including Sony, Alpine and Pioneer Electronics Corporation, Delphi Delco Electronic Systems, Audiovox, Clarion, Mitsubishi Electronic Automotive America, Motorola and Sharp Corporation. In addition, XM Radio has entered into a long-term distribution agreement with General Motors to integrate XM-Ready radios into GM's vehicles commencing in 2001.

SED's mission is to provide the satellite industry with the rapid delivery of dependable, flexible systems and services that fully satisfy customers' needs in testing, operating and managing their satellite systems. SED's product lines include In-orbit Test, Satellite Spectrum Monitoring, and Telemetry, Tracking and Command Systems, as well as Satellite Gateways, Network Control Systems and Up-link Stations. Customers include major satellite manufacturers, operators and service providers worldwide. Custom manufacturing services are provided to customers in the local and national markets.

Calian Technology Ltd. sells e-business and Information Technology (IT) professional services, including management consulting, IT consulting, Telecommunications systems engineering, outsourcing and IT staffing.