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Sirius Satellite Radio (Nasdaq: SIRI), the premier satellite radio provider, today announced it will introduce a new, second generation chipset for its satellite radios during the fourth quarter of this year.

The new chipset represents a quantum leap in technology, and utilizes Agere Systems' 0.13 micron, 6-Layer Metal technology to integrate all digital portions of the receiver circuitry, excluding memory, into a single chip. Analog and mixed signal integrated circuits complete the chip set. This effectively reduces the entire component dimensions to the size of a credit card, from that of a videocassette today.

"This new chipset will accelerate our plans to introduce second generation Sirius radios into the marketplace," said Joseph P. Clayton, President and CEO of Sirius Satellite Radio. "We are excited to be moving forward in a dynamic way with our technology partner Agere, and are eager to reap the benefits of this technology in terms of cost, performance and efficiency."

The new chipset includes many significant improvements over the existing design, besides the dramatic reduction in size. These improvements include a 50 percent reduction in required power and better thermal management to reduce heat. The new design will also allow Sirius to lower total system cost by almost 50 percent.

"We are pleased to be a key partner with Sirius in bringing this system-on-chip solution to the satellite radio market," said Edwin Muth, Managing Director of Agere Systems' satellite radio component business. "The reduction in power and overall component count is key in enabling car radio manufacturers to offer a fully integrated receiver in the dashboard."

About Sirius
From its three satellites orbiting directly over the U.S., Sirius broadcasts 100 channels of digital quality radio throughout the continental United States for a monthly subscription fee of $12.95. Sirius delivers 60 original channels of completely commercial-free music in virtually every genre, and 40 world-class sports, news and entertainment channels. DaimlerChrysler has announced plans to offer Sirius radios in 17 models of Chrysler, Dodge and Jeep vehicles beginning this fall. BMW has announced plans to offer Sirius radios as an accessory in its most popular models through BMW Centers across the country, including select BMW 3 Series, 5 Series and X5 vehicles. Nissan has announced plans to offer Sirius radios as an option this fall on six Infiniti and Nissan 2003 models, and future Audi and Volkswagen models will also offer Sirius. Sirius also has agreements to install AM/FM/SAT radios in Ford, Mercedes-Benz, Jaguar, Volvo and Mazda vehicles. Kenwood, Clarion, Audiovox, and Jensen satellite receivers, including models that can adapt any car stereo to receive Sirius, are available at retailers such as Circuit City, Best Buy, Sears, Good Guys, Tweeter, Ultimate Electronics and Crutchfield. Panasonic satellite radio products will be available in September 2002.
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