Nate Davis - A Commanding Figure For XM

September 22, 2006

XM management met with several analysts yesterday to outline the focus and direction of XM Satellite Radio. Barton Crockett of JP Morgan attended the conference, and it appears that the focus of discussions was on cost responsibility measures, and smart growth of the company.

There can be little doubt the Nate Davis will play a key role in XM's future.

Mr. Crockett outlined some of Davis' Perspectives:

Davis sees numerous opportunities to improve basic blocking and tackling. He described an organization which, prior to his arrival, had grown so rapidly, and taken on so many disparate challenges, that top executives were trying to juggle too many difficult chores simultaneously, hurting their performance. He is splitting up duties, and bringing in new talent. He also believes he can improve operations without meaningfully upping the expense profile, so that opex continues to grow slower than sales, aided by trimming spending on less productive initiatives.
Davis cited three areas of potential near-term improvements.

Improved retail channel management

XM Advertising Campaign

New targeted Marketing Push

JP Morgan maintains a neutral rating on XM as well as Sirius.

Investors interested in the JP Morgan report can visit JP Morgan HERE

9/22/2006 10:37:00 AM

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