Pioneer and XM Satellite Radio Achieve Major Milestone IN Portable Audio with Pioneer Inno, The Next-Genertaion XM2GO Player with Live XM and MP3

Pioneer Electronics (USA) Inc. and XM Satellite Radio today unveiled the Pioneer InnoÔ, the next-generation portable XM2go satellite radio receiver that plays live satellite radio “on the go” and both MP3 and WMA music files, heralding a major milestone in portable audio.

The Pioneer Inno offers the long-awaited combination of MP3 and live XM Satellite Radio reception in a sleek, handheld device. The wearable radio delivers XM's 160 digital radio channels of commercial-free music and premier sports, news, talk, and entertainment programming live and nationwide. It plays MP3s and WMAs, and it has a time-shifting memory mode for storage and playback of XM content.

A particularly innovative feature of the Inno allows the user to “bookmark” songs heard on XM, connect the Inno to a personal computer, and instantly purchase the songs from the XM + Napster online service.

“For music fans, XM Satellite Radio and compressed audio media are the biggest things to happen in decades, and now you can get the best of both worlds in a single device that fits in the palm of your hand,” said Hugh Panero, President and CEO of XM Satellite Radio.

“XM's on-air hosts play the richest, deepest variety of music ever heard on the radio. When you combine live XM Radio with a portable MP3 player that lets you buy songs you hear on XM from Napster, you have a 360-degree music experience. Consumers and critics alike have been clamoring for a portable player that plays live satellite radio and MP3s. And now, the wait is over,” Panero said.

"The Pioneer Inno delivers where other personal music players have fallen short," said Larry Rougas, vice president of marketing and product planning for mobile entertainment at Pioneer Electronics (USA) Inc. "In the past, the consumer has been able to do one of two things: listen to satellite radio or listen to music downloaded from their own collection. Now, the consumer can have their personal favorites and also be exposed to great new artists through XM programming. Adding the XM functionality to an MP3 player means you're no longer a prisoner to your own playlist."

The Pioneer Inno has 1GB of memory storage capacity for MP3 files, WMA files, and XM programming, which can store up to 50 hours of content.  At only 4.4 ounces and 3.4” x 1.9” x .67”, the Inno is extremely light and easy to take along anywhere.

In addition to the XM + Napster feature of the Inno, it has a full-color 180 X 180 pixels TFT display and a user-friendly interface for saving and deleting content. Users can build personal playlists using a mix of XM content and tracks from their own digital music collection. The Inno has a memory buffer to make it easy to store an entire track heard in XM, even if the user starts storing it in the middle of a song.

Inno also has a built-in, wireless FM transmitter that beams XM to any car stereo radio. It offers a personal stock ticker and sport ticker, a category list for saving and playing favorite channels, and the popular TuneSelect feature, which tells the listener a favorite artist or song whenever it is played on any XM channel.

Inno comes with headphones and all of the accessories needed for portable and home use. Optional accessories sold separately include a vehicle kit, boom boxes, and mini audio systems.

The Pioneer Inno has a suggested price of $399.99 and will arrive at retailers in March 2006.

About XM Satellite Radio

XM (Nasdaq: XMSR - News) is America's number one satellite radio service with more than 5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM offers 160 digital channels of choice from coast to coast: the most commercial-free music channels, premier sports, talk, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan, Porsche, and Volkswagen/Audi, is available in more than 120 different vehicle models for 2006. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-Q filed with the Securities and Exchange Commission on 11-07-05. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

About Pioneer

Pioneer's Mobile Entertainment Division is the leading manufacturer of audio, video and information products for in-car use. Its focus is on the development of new digital technologies including audio video, navigation and satellite radio, while maintaining its strong heritage in products for car audio enthusiasts and competitors. The company markets its products under the Pioneer and Premier brand names.  When purchased from an authorized dealer, consumers receive a limited warranty for one year with Pioneer products and two years for Premier electronic products.

Press Releases