XM Canada Reports $23.9 Million Loss but Maintains Positive Outlook

Press Release - January 15, 2007

Canadian Satellite Radio Holdings Inc., which offers XM satellite radio service in Canada, has reported a net loss of $23.9 million, or $0.50 per share for the first quarter of its fiscal year, but claims to be on track in meeting its financial goals.

The company generated a total of $3.9 million in revenue for the quarter ending on November 30, and reported a total of 147,000 subscribers as of that date.

The XM Canada service remains a distant second place to its competitor, Sirius, in terms of market penetration, but has recently won deals with several major auto manufacturers, including GM Canada, Honda, Toyota, and Nissan, giving it approximately 80% of the factory-installed vehicle market.

XM has also acquired the exclusive right to broadcast NHL hockey games over the satellite radio airwaves for the next eight years.

“We are off to a promising second year of operations,” commented John Bitrove, the CEO of Canadian Satellite Radio. “The losses are planned for and expected, and that is what we said from the very beginning,” he assured shareholders about the recent financial results.