XM Satellite Radio (Nasdaq: XMSR) announced that it has declared a regular quarterly dividend on its 8.25% Series B Convertible Redeemable Preferred Stock.

The dividend is payable in shares of the Company's Class A Common Stock at a rate of $1.0313 per share of Series B Preferred Stock owned, with fractional shares to be paid in cash. The shares of Class A Common Stock to be issued will be valued at 95% of the average daily price of the Class A Common Stock for the 10 consecutive trading days ending on January 13, 2005.

The dividend is payable as of February 1, 2005, to Series B convertible preferred stockholders of record of XM Satellite Radio Holdings Inc. as of January 21, 2005.

XM Satellite Radio (Nasdaq: XMSR) today announced that the initial purchaser has exercised its option in full to purchase an additional $100 million of the company's 1.75% Convertible Senior Notes due 2009. This purchase increases the aggregate principal amount of notes to $400 million.

The closing of the sale of additional notes is expected to occur on January 12, 2005.

The notes are convertible into 20.0 shares of the company's common stock for each $1,000 principal amount of notes, representing a conversion price of $50 per share of common stock, subject to adjustment in certain circumstances.