XM Canada Reports Q4 and Full-Year Results

(snip)

XM Canada exceeds all goals and targets in first year of operations

    <<
                 Reports Fourth Quarter and year-end results

    Year-end Highlights:

    -   Automobile manufacturer penetration higher than expected, including
        recent GM announcement of 100,000 vehicles now delivered or on order
        with XM radios factory-installed

    -   Agreements signed with auto partners that represent nearly
        one million new vehicles annually

    -   TELUS and XM Canada launched Canada's first streaming cellular phone
        service

    -   Canadian programming expanded to include exclusive contract with
        morning talk host "The Pirate" Jeff Fillion on Sport Plus 172, Mike
        Bullard Uncensored on Laugh Attack 153 and the exclusive addition of
        "Oprah & Friends" on channel 156

    -   NHL exclusive agreement commences at the end of this season and XM
        continues to broadcast more than 1,000 games per season

    -   Canadian sales of the revolutionary Pioneer inno(TM), the world's
        first portable satellite radio receiver, are exceeding plan

    -   Donald McKenzie appointed Senior Vice President of Sales and
        Marketing and Marc Comeau fills XM Canada Board position on behalf of
        GM Canada
    >>

    TORONTO, Nov. 15 /CNW/ - Canadian Satellite Radio Holdings Inc. ("CSR")
(TSX:XSR), reported its financial results for the fourth quarter and year
ended August 31, 2006 and confirmed that it has achieved 120,000 subscribers,
including more than 91,200 self-paying subscribers. The 12-month subscriber
achievement exceeds CSR's previous subscriber guidance of 75,000.
    "We are off to an incredible start and I am very pleased with what our
management team has achieved in such a short period of time," said John
Bitove, Chairman and CEO. "We are very well positioned for long-term success
with all that we have completed this year. We look forward to continued growth
in 2007 with the most extensive automotive partnership network and by offering
the music and entertainment as well as innovative technology that Canadians
want."

    Financial results

    For the three-month period ended August 31, 2006 (fourth fiscal quarter),
CSR reported that revenue increased 46 per cent over the previous quarter, to
$3.4 million, due to an increase in subscriptions, activations, advertising
sales, and sales of radios from the direct fulfillment channel. XM Canada
previously announced an increase of its monthly subscription price from $12.99
to $14.99. This increase did not take effect until September 1, 2006,
subsequent to the end of the fourth quarter, but is expected to positively
impact future revenue.
    Adjusted Operating Loss(1) for the three-month period was $14.4 million.
As CSR had not launched operations a year ago, the corresponding prior year
figures for CSR's fourth quarter and full-year 2005 results are not
comparable. For the 12-month period ending August 31, 2006, CSR's revenues
were $6.9 million with Adjusted Operating Loss of $56.4 million.
    For the fourth quarter, Average Revenue Per Unit was $11.78. CSR incurred
Subscriber Acquisition Costs of $59, down from $69 the previous quarter,
primarily as a result of new subscribers gained through the automotive
channels. Cost Per Gross Addition of $242 remained essentially unchanged from
the third quarter as a result of increased advertising and marketing expenses
around Father's Day, one of the biggest selling seasons.
    Operational expenses for the three-month period ending August 31, 2006
included general and administrative (G&A) expenses of $5.4 million, marketing
of $7.8 million and cost of revenue of $4.8 million.
    The preparation and launch of XM Canada satellite radio service for the
12-month period ended August 31, 2006 also includes operational expenses
related to the build-out of a national repeater network, a project that was
completed ahead of schedule and under budget. For the 12-month period, G&A was
$18.5 million. These costs are primarily associated with the personnel and
infrastructure expenses required to support our growing subscriber base.
    Marketing expenditures of $28.0 million and cost of revenue of
$19.1 million were incurred to acquire new subscribers and to launch XM Canada
during the 2005 holiday season. Most of the planned infrastructure rollout
occurred in the first and second fiscal quarters of 2006. With these
significant expenditures complete, XM Canada did not incur significant capital
expenditures in the fourth quarter.

    Recent Developments:

    CSR has bolstered its management team with the recent addition of Donald
McKenzie as Senior Vice President of Sales and Marketing. CSR announced today
that Marc Comeau, Vice President - Sales, Service and Marketing of General
Motors Canada Ltd., has joined the Board of Directors. Comeau fills the
position vacated by Michael Grimaldi of GM Canada, who moved to South Korea as
president of General Motors in Asia earlier in the year. GM Canada is allotted
one seat on the Board of Directors as part of its minority ownership role of
the Company and an agreement signed with CSR.

    Conference Call/Webcast

    John Bitove, Chairman and Chief Executive Officer, Stephen Tapp,
President and Chief Operating Officer, and Michael Washinushi, Chief Financial
Officer, will hold a conference call to discuss the fourth quarter results
today, Thursday November 16, 2006 at 1 p.m. (ET). To participate in the
conference call, please dial 416-644-3417 (Toronto) or 1-800-814-4941
(toll-free).
    A live audio webcast (listen-only mode) of the conference call will be
available at
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1662540 and
www.cdnsatrad.com.
    An archived recording of the conference call will be available at
1-416-640-1917 (Toronto) or 1-877-289-8525 (Toll-free) (Passcode: 21208839
followed by the number sign) on Thursday November 16, 2006 after 3 p.m. ET
until November 30, 2006 at 11:59 p.m. EDT.

    Forward-Looking Statements

    Certain statements in this media release may be forward-looking in
nature. Such statements can be identified by the use of forward-looking
terminology such as "expects," "may," "will," "should," "intend," "plan," or
"anticipates" or the negative thereof or comparable terminology, or by
discussions of strategy. Forward-looking statements include estimates, plans,
expectations, opinions, forecasts, projections, targets, guidance or other
statements that are not statements of fact. Although CSR believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
CSR's forward-looking statements are expressly qualified in their entirety by
this cautionary statement. CSR makes no commitment to revise or update any
forward-looking statements in order to reflect events or circumstances after
the date any such statement is made.
    Additional information identifying risks and uncertainties is contained
in CSR's filings with the Canadian securities regulators, available at
www.sedar.com.
    Related financial documents, including Interim Financial Statements and
Management Discussion and Analysis, have been filed with SEDAR for posting to
www.sedar.com. Copies of Canadian Satellite Radio Holdings Inc. financial
documents are also available upon request through the www.cdnsatrad.com
website and from the contact listed on this media release.

    About Canadian Satellite Radio Holdings Inc.

    Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM
Canada(TM) through its subsidiary, Canadian Satellite Radio Inc. XM is the
No. 1 satellite radio service in the universe with the best coverage in the
country and offering a unique lineup of premier Canadian and international
programming.
    XM Canada offers listeners up to 100 channels of unique and exclusive
programming including the most NHL(TM) games, PGA TOUR(TM) and Major League
Baseball(TM) coverage, the deepest play list, and news, talk, sports,
entertainment and children's programming. After this season, XM will become
the exclusive provider of NHL games on satellite radio. General Motors, Honda,
Nissan, Toyota, Suzuki and Subaru will offer XM radios in more than 80
different models of vehicles for model year 2007.
    XM has an exclusive Canadian licence from U.S.-based XM Satellite Radio
Inc. (NASDAQ: XMSR), the leading satellite radio provider in the U.S. with
more than 7.1 million subscribers. XM is offered on TELUS Mobile Radio(TM).
    To find out more about Canadian Satellite Radio Inc. (TSX: XSR), visit
our website at www.cdnsatrad.com. A live stream of selected XM Canada channels
is available via a three-day complimentary trial of XM Radio Online at
http://listen.xmradio.ca. To subscribe to XM Canada online or for more
information about XM Canada's programming lineup and radio choice, visit
www.xmradio.ca.

    <<
    --------------------
    (1) Adjusted Operating Loss defined in Consolidated Statement of
        Operations and Deficit.



    Canadian Satellite Radio Holdings Inc
    Consolidated Balance Sheet (Unaudited)

                                                          2006          2005
                                                             $             $
    Assets

    Current assets
    Cash and cash equivalents                       45,188,214            20
    Accounts receivable                              2,125,367             -
    Inventory                                          600,124             -
    Prepaid expenses and other assets                6,882,247             -
    Restricted investments                          13,663,023             -

                                                    68,458,975            20

    Restricted investments                          19,370,939             -

    Deferred financing costs                         5,146,280             -

    Property and equipment                          23,221,760     1,996,606

    Contract rights, distribution rights
     and computer software                         239,648,067     1,006,634

    Total assets                                   355,846,021     3,003,260

    Liabilities and Shareholders' Equity (Deficiency)

    Current liabilities
    Accounts payable and accrued liabilities        13,516,770    11,864,983
    Deferred revenue                                 2,969,366             -

                                                    16,486,136    11,864,983

    Long-term debt                                 110,660,000             -

    Deferred revenue                                 1,032,289             -

    Long-term obligations                              310,405        16,987

    Total liabilities                              128,488,830    11,881,970

    Shareholders' Equity (Deficiency)
    Share capital                                  312,595,362            20
    Contributed surplus                             26,344,137             -
    Deficit                                       (111,582,308)   (8,878,730)

    Total shareholders' equity (deficiency)        227,357,191    (8,878,710)

    Total liabilities and shareholders'
     equity (deficiency)                           355,846,021     3,003,260



    Canadian Satellite Radio Holdings Inc.
    Consolidated Statement of Operations and Deficit (Unaudited)

                                  3 Months Ended
                                          Aug 31,     12 Months Ended Aug 31,
                                            2006          2006          2005
                                               $             $             $

    Revenue                            3,417,373     6,949,282             -

    Operating expenses
    Cost of revenue                    4,812,958    19,050,684             -
    Indirect costs                             0       827,125     3,528,914
    General and administrative         5,428,765    18,465,217     3,172,480
    Stock-based compensation             759,049    23,694,846             -
    Marketing                          7,774,874    28,021,159             -
    Amortization of intangible assets
     and property and equipment        5,470,009    15,914,239         3,865

                                      24,245,655   105,973,270     6,705,259

    Operating loss                   (20,828,282)  (99,023,988)   (6,705,259)

    Interest revenue                   1,001,512     2,619,481             -

    Interest expenses                 (3,773,180)   (8,279,303)            -

    Foreign exchange gains              (131,858)    1,980,232             -

    Net loss for the period          (23,731,808) (102,703,578)   (6,705,259)

    Deficit - Beginning of period    (87,850,500)   (8,878,730)   (2,173,471)

    Deficit - End of period         (111,582,308) (111,582,308)   (8,878,730)

    Basic and fully diluted
     loss per share                        (0.50)        (2.99)      (17,833)



    Canadian Satellite Radio Holdings Inc.
    Reconciliation of Operating loss to Adjusted Operating Loss

                                                      3 Months     12 Months
                                                         Ended         Ended
                                                  Aug 31, 2006  Aug 31, 2006

    Operating loss as reported                     (20,828,282)  (99,023,988)
    Add back non-Adjusted Operating Loss items
     included in Operating loss
    Amortization                                     5,470,009    15,914,239
    Stock-Based Compensation                           759,049    23,694,846
    Costs paid by parent company                       186,277     3,049,041

    Adjusted Operating Loss                        (14,412,947)  (56,365,862)

    Adjusted Operating Loss is defined as Operating loss excluding
amortization, stock-based compensation to employees, directors, officers and
service providers, and non-cash costs paid by parent company. We believe that
Adjusted Operating Loss, as opposed to Operating loss or Net loss, provides a
better measure of our core business operating results and improves
comparability. This non-GAAP measure should be used in addition to, but not as
a substitute for, the analysis provided in statement of operations. We believe
Adjusted Operating Loss is a useful measure of our operating performance and
is a significant basis used by our management to measure the operating
performance of our business. While amortization and stock-based compensation
are considered operating costs under generally accepted accounting principles,
these expenses primarily represent non-cash current period allocation of costs
associated with long-lived assets acquired or constructed in prior periods and
non-cash employee and service provider compensation. Costs paid by parent
company are non-cash costs related to the licence application process and are
not related to ongoing operations of the business. Adjusted Operating Loss is
a calculation used as a basis for investors and analysts to evaluate and
compare the periodic and future operating performances and value of similar
companies in our industry, although our measure of Adjusted Operating Loss may
not be comparable to similarly titled measures of other companies. Adjusted
Operating Loss does not purport to represent operating loss or cash flow from
operating activities, as those terms are defined under generally accepted
accounting principles, and should not be considered as an alternative to those
measurements as an indicator of our performance.
    We do not report Adjusted Operating Loss for periods prior to fiscal 2006
as we were a development stage company focused on obtaining a licence from the
CRTC.


    Canadian Satellite Radio Holdings Inc.
    Consolidated Statement of Cash Flows (Unaudited)

                                                          2006          2005
                                                             $             $
    Cash provided by (used in)

    Operating activities
    Net loss for the year                         (102,703,578)   (6,705,259)
    Add (deduct): Non-cash items
      Costs paid by parent company                   3,049,041             -
      Stock-based compensation expense              23,694,846             -
      Amortization of intangible assets             14,075,636             -
      Amortization of property and equipment         1,838,603         3,865
      Accrued interest - debt                          519,161             -
      Accrued interest receivable                     (814,774)            -
      Amortization of deferred financing costs         373,752             -
      Interest accretion expense                        25,299             -
      Unrealized foreign exchange gains             (2,098,253)            -
    Net change in non-cash working capital
     related to operations                            (206,745)    6,701,394
                                                 ----------------------------
    Net cash used in operating activities          (62,247,012)            -
                                                 ----------------------------
    Investing activities
    Restricted investments                         (41,015,595)            -
    Payment of interest expense from
     restricted investments                          7,396,855             -
    Purchase of property and equipment             (24,055,466)            -
    Purchase of computer software                   (8,570,715)            -
                                                 ----------------------------
    Net cash used in investing activities          (66,244,921)            -
                                                 ----------------------------
    Financing activities
    Initial public offering -
     net of issuance costs                          50,042,354             -
    Shares issued to CSR Investments                15,000,000             -
    Deferred financing costs                        (5,520,032)            -
    Proceeds from long-term debt                   115,420,000             -
                                                 ----------------------------
    Net cash provided by financing activities      174,942,322             -
                                                 ----------------------------
    Foreign exchange loss on cash held
     in foreign currency                            (1,262,195)            -
                                                 ----------------------------
    Change in cash and cash equivalents
     during the year                                45,188,194             -

    Cash and cash equivalents - Beginning of year           20            20
                                                 ----------------------------
    Cash and cash equivalents - End of year         45,188,214            20
                                                 ----------------------------
                                                 ----------------------------
    Supplemental cash flow disclosures
    Rights acquired through issuance of shares     245,152,988             -
    Property and equipment purchases
     in accounts payable                               736,778     1,729,148
    Computer software purchases in
     accounts payable                                        -     1,006,634
    Prepaid advertising purchased through
     issuance of equity                              2,000,000             -
    Additions to property and equipment
     and long-term obligations for
     asset retirement obligations                      268,119        16,987

    >>

    %SEDAR: 00022901E



For further information: Jason Mercier, (416) 203-6666,
jmercier@xmradio.ca