Satellite Radio Companies Compete for Luxury Car Customers

Last week, XM Radio announced its radios would be factory-installed in Lexus LS models starting in 2007. This week, the company announced that it is also signing a long-term agreement with Porsche Cars of North America Inc. to equip Porsche vehicles for the U.S. market with XM in 2007.

XM has been available as a popular factory-installed feature for Cayenne models since 2005 and will be the exclusive satellite radio option in the future. Under the new agreement, XM will also be available for other Porsche models in the future. Consumers who purchase a Porsche vehicle with XM receive a complimentary three-month subscription to the service.

In addition to XM's primary service of 170 digital radio channels of commercial-free music and premier sports, news, talk, and entertainment, XM will also develop satellite-delivered data services for Porsche vehicles. These services are expected to include the advanced XM NavTraffic real-time traffic data service which is now available in 44 major markets nationwide.

"XM has the technology and content that is consistent with Porsche's commitment to providing our customers the best possible driving experience," said Peter Schwarzenbauer, President and CEO, Porsche Cars of North America. "We are very pleased to be expanding our partnership with XM."

"Porsche is renowned for performance, quality, engineering, and innovation, and XM is proud to be a part of that tradition as we extend our partnership with one of the world's great brands," said Nate Davis, President and COO, XM Satellite Radio. "The fact that Porsche is offering XM exclusively is a testament to the quality of the programming we offer and our leadership in advanced technology. It underscores our company's position as the leading provider of satellite radio for the automobile market, as well as the overall leader in the satellite radio industry."

Not to be outdone by its biggest competitor, SIRIUS Satellite Radio has also signed an exclusive deal with a luxury car company. SIRIUS recently announced announced an exclusive agreement with Bentley Motors Inc. for the inclusion of SIRIUS in Bentley vehicles. SIRIUS will be available in select Bentley models in the U.S. beginning in the mid- 2007 model year and will become a standard feature available in all Continental GT, Continental GTC and Continental Flying Spur vehicles beginning in the 2008 model year.

"All vehicles equipped with SIRIUS will include a lifetime subscription to the service, which will enhance each Bentley's individual customization and give each customer a new vehicle experience," said Andrew Stuart, CEO for Bentley Motors Inc.

"SIRIUS' exceptional programming is a natural addition to the extraordinary reputation of a Bentley, and we are very excited about our relationship with such an internationally elite brand," said Mel Karmazin, CEO, SIRIUS.

Bentley customers can now order vehicles with SIRIUS Satellite Radio for delivery in early 2007.