XM Satellite Radio and STMicroelectronics Announce Delivery of Custom Chipsets to Radio Manufacturing Partners.

Business Editors

WASHINGTON & GENEVA--(BUSINESS WIRE)--Oct. 19, 2000

XM and STMicroelectronics Achieve Significant Technical Milestone

XM Satellite Radio Inc. (Nasdaq: XMSR), the satellite radio broadcaster, and STMicroelectronics (NYSE: STM), one of the world's leading semiconductor vendors, have successfully completed fabrication and initial testing of XM's first pass custom chips; these chips are now being delivered to XM radio partners for integration into the manufacturing process of XM satellite-capable radios. Delivery of the custom integrated circuits is a major technical milestone because it enables radio manufacturers to mass produce XM radios at attractive retail price points.

The XM chipset consists of two custom integrated circuits designed by STMicroelectronics for XM Satellite Radio capable of processing XM's digital satellite signal transmitted by its two high-powered satellites as well as the signal transmitted from the XM's terrestrial repeater network. The signal contains up to 100 channels of digital audio programming in addition to text information relating to the song title, artist and genre of music that will be shown on the radio display.

According to Dr. Stellios Patsiokas, XM Senior Vice President of Technology, "We are extremely happy that these highly complex chips have been delivered by ST on time and fully functional at the first silicon. As a result we have been able to deliver them to our radio manufacturing partners in a time frame that is consistent with achieving our second quarter 2001 XM service launch date."

Sergio Garue, STMicroelectronics, Group Vice-President, Telecommunication & Peripherals/Automotive Groups and Audio & Automotive Division General Manager, commenting on the announcement said, "We are very proud to have been chosen as the chip partner by XM for this landmark project and with the support of high-profile partners such as General Motors we believe it will become a major success."

Last month, XM demonstrated its first working prototype radio developed by XM as well as a radio developed by Delphi-Delco. The XM chipsets are being delivered to the company's radio manufacturing partners, which includes Delphi-Delco, Sony, Alpine, Pioneer Electronics Corporation and Clarion among others.

The XM chipset development is the result of an outstanding cooperative integration effort between XM's key receiver technology partners including STMicroelectronics, Fraunhofer Institute, Lucent Digital Radio, Certicom and Digital Voice Systems.

About XM Satellite Radio

XM Satellite Radio is developing a new band of radio. It will create and package up to 100 national channels of digital-quality music, news, sports, talk, comedy and children's programming in its state-of-the-art, all-digital 82-studio broadcast center in Washington, DC. The service will be uplinked to XM's powerful satellites and transmitted directly to vehicle, home and portable radios across the country. The company's first satellite is scheduled to launch in December. XM's consumer service is slated to begin during the first half of 2001 for a monthly subscription fee of $9.95. XM ready radios will be sold by automotive and retail outlets such as Best Buy and Circuit City. The company has a long-term distribution agreement with General Motors to integrate XM-Ready radios into its vehicles commencing in 2001. XM's strategic investors include America's leading car, radio and satellite TV companies - General Motors, American Honda Motor Co. Inc., Clear Channel Communications, DIRECTV and Motient Corporation (Nasdaq: MTNT). First there was AM. Then there was FM. And now...XM Satellite Radio. For more information, please visit XM's new website: www.xmradio.com.

About STMicroelectronics

STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Paris Bourse and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. In 1999, the Company's net revenues were $5,056 million and net earnings were $547 million. For the first half of 2000, revenues were $3,579.5 million and net income reached US$574.9 million. Further information on ST can be found at www.st.com.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include uncertainties associated with the launch of our satellites, the company's dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form S-1 filed with the Securities and Exchange Commission on 9-7-00. Copies of the filing are available upon request from XM Radio's Investor Relations Department