Karmazins Speech at Global Automotive Conference

April 12, 2006

As reported here at Satellite Standard Group, and at Get Sirius Info, Mel Karmazin was the Keynote Speaker at the Morgan Stanley Global Automotive Conference today at the Crowne Plaza in Times Square of New York City.

Karmazin noted several items that which reiterated Sirius’ current guidance. Key notes from the event are noted below:

Mel Karmazin stated, “The Holy Grail is people in their car. If people are in their car they are going to be listening to radio. If they are listening to radio they are going to be listening to Sirius.”

Mel stated that he would not really be divulging anything new today, and that earnings for the first quarter are just a few weeks away.

Mel discussed consumer satisfaction. He stated that over 90% of Sirius’ customers express satisfaction with the service. Further, he stated that 86% would recommend Sirius to a friend.

Mel stated that 94% of the subscribers are listening in their car, and that people are listening an average of 19 hours per week.

Mel stated that Sirius’ unaided brand awareness is at 50%, and noted that this was impressive for a new company.

Mel spoke about the dramatic growth Sirius has seen so far, and in particular in the retail channel. He noted that for the first couple of months of 2006 that Sirius is seeing over 60% market share in the retail channel.

Mel noted that when the consumer has a choice that Sirius is seeing over 50% of the market come to them.

Mel noted that Sirius will be seeing increased penetration on the OEM front, and that they will more than double their OEM subscriber base in 2006 vs. 2005.

Mel hinted that announcements would be coming up over the next few weeks.

Mel indicated that Sirius is very keen on getting content that generates 2 revenue streams. Subscriber revenue and advertising revenue. He also indicated that the commercial free music aspect of the business will remain in place.

Mel reiterated that Sirius will exceed $600,000,000 in Revenue in 2006.

Mel reiterated that Sirius will exceed 6,000,000 subscribers in 2006.

Mel reiterated that Sirius will have over $1,000,000,000 in revenue for 2007.

Mel reiterated that Sirius would have over $3,000,000,000 in revenue in 2010.

Mel reiterated that Sirius will be Free Cash Flow positive in the fourth quarter of 2006, and throughout 2007. He stressed that the Free Cash flow positive is inclusive of all costs (including capital expenditures and projected RIAA fees).

Mel spoke briefly about rear seat video, and that it is a path Sirius is working on.

Mel stated that Sirius is the market leader in Canada.

Mel stated that the projected SAC for 2006 is $110, and that customer pre-pays are greater than the SAC cost.

All in all the conference went well. As expected, there was no real new information, but perhaps the most important aspect of the speech was the reiteration of key metrics.

The link to this write up is http://tinyurl.com/mjgbo

4/12/2006 11:10:00 AM

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