e.Digital Corporation (fka EDIG)

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XM Ad Debuts Today on Most U.S. Movie Screens; 60-Second Spot Will Air on More than 19,000 Screens In 3,000 Theaters Across Country
http://biz.yahoo.com/prnews/010810/dcf004.html

WASHINGTON, Aug. 10 /PRNewswire/ -- Kicking off its national advertising campaign, XM Satellite Radio (Nasdaq: XMSR - news) will debut its 60-second spot today on a majority of the nation's movie screens: More than 19,000 screens in 3,000 theaters across the country.

The spot, previewed last month at a New York news conference, will run for a month, building momentum toward XM's commercial service launch Sept. 12. It will run on every screen in more than 3,000 theaters coast-to-coast, at the peak of summer movie season.

XM's national ad campaign, called ``Radio to the Power of X,'' is a multimedia effort anchored by a television campaign developed by the premier agency TBWA/Chiat/Day, and features some of the biggest stars in music: BB King, David Bowie and Snoop Dogg. The multi-faceted effort will also include radio, magazines, newspapers, direct mail, outdoor and online.

``What better place to introduce America to XM than in movie theaters, where consumers are used to seeing and hearing great entertainment?'' said XM President and CEO Hugh Panero. ``We are coming to just about everybody's local theater to let them know that a new generation of radio -- Radio to the Power of X -- is coming to their local retailer in a few weeks.''

Overall, the ad campaign defines XM's brand as the ultimate radio experience and uses a series of artists -- King, Bowie and Snoop Dogg -- and objects depicting the range of content and programming available on XM's service. Musicians, musical instruments, a racing car and other objects rain down across the country from an XM satellite. The overarching 60-second spot and seven 30-second, genre-specific spots give consumers a flavor of some of the programming that will be available. Some $45 million of the $100 million advertising campaign will be concentrated in the fourth quarter of this year.

XM will transform radio, an industry that has seen little technological change since FM, almost 40 years ago. XM will offer 100 channels of digital- quality sound coast-to-coast: 71 music channels, more than 30 of them commercial-free, and 29 news, sports and talk channels, all for $9.99 a month. Tracked by its $100 million multi-media ad campaign, XM will launch commercial service Sept. 12, initially in San Diego and Dallas/Fort Worth, throughout the Southwest in mid-October and nationally in early November.

XM's equipment production is on pace with its launch plans. Earlier this month, STMicroelectronics (NYSE: STM - news) announced it had received orders from radio manufacturers for 170,000 two-chip receiver chipsets for XM radios. At least 70,000 of these chipsets are scheduled for delivery in the third quarter to support the initial startup of commercial service, and the remaining 100,000 chipsets are forecast for delivery before the end of 2001, STM announced. XM Radio chipsets are being delivered to equipment manufacturers including Sony, Pioneer, Alpine and Delphi Automotive Systems for both vehicle and home receiver products that will also include AM and FM radio capability.

XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications, DIRECTV and Motient Corporation. XM has a distribution agreement with General Motors to integrate XM radios into its vehicles commencing in 2001. ``XM-ready'' radios are being manufactured by such household names as Sony, Alpine, Pioneer, Clarion, Blaupunkt, Delphi-Delco, Visteon, Panasonic, and Sanyo and are available through retailers including Best Buy, Circuit City, Sears and Crutchfield. XM tuner modules will be available before service launch. For more information, please visit XM's web site: http://www.xmradio.com .

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include uncertainties associated with the company's dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 8-K filed with the Securities and Exchange Commission on 2-22-2001. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.

SOURCE: XM Satellite Radio