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July 20, 2006

Sirius, XM Stop Production of Selected Satellite Radios

Last month, Stephanie reported that Sirius and XM may hault production of radios. Sirius is now reporting it has instructed some of its manufacturers to stop making radios that do not comply with current federal emissions and frequency rules. Rival XM Satellite Radio made a similar move related to models with FM transmitters, which allow consumers to play the satellite service on a traditional radio.

In a recent U.S. Securities and Exchange Commission filing, Sirius stated that the Federal Communications Commission was continuing its review of the products. The company believes its radios currently in production comply with applicable FCC rules, and reassured consumers that no health or safety issues are involved with the radios they have stopped producing. Sirius also said that factory-installed radios in new vehicles are not affected.

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