Monday, July 18, 2005

XM Satellite Radio Invests in Worldspace for Global Coverage

XM Satellite Radio has made a strategic investment of $25 million in the common stock of WorldSpace, a leading satellite radio provider for Asia, Europe, the Middle East and Africa. WorldSpace broadcasts via two geo-stationary satellites, AfriStar and AsiaStar. It also owns spectrum licenses to deliver more than 100 digital quality audio channels per satellite as well as multimedia content directly to WorldSpace Satellite Radio receivers.

The companies also agreed to develop satellite radio products, technology and distribution and supplier networks. In addition, XM will have warrants to acquire $37.5 million in additional WorldSpace stock and an option to invest along with WorldSpace and other partners in various countries around the globe.

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