Boeing will build
and deliver a fourth Boeing 702 satellite for XM Satellite Radio, Inc., the Washington, D.C.-based provider of the nation’s leading
satellite radio service.

The satellite, designated XM-4, will be delivered in late 2005 for future
launch to XM’s orbital slot at 115 degrees west longitude in support of XM’s
on-going service requirements.

“This order demonstrates a valued customer’s continued confidence in the
Boeing 702 product line,” said Dave Ryan, vice president and general manager
of Boeing Satellite Systems. “XM initiated commercial service with two Boeing
702 satellites plus a ground spare in 2001, and we are grateful for this new
opportunity to support their continued success. This award also makes clear
that Boeing is fully committed to providing reliable technology and superior
long-term service to its customers in the commercial and government
marketplaces.”

As in the first three XM spacecraft, Alcatel Espace of Toulouse, France
will provide the S-band Digital Audio Radio Service (DARS) payload for XM-4.
XM-4 will also feature a number of upgrades including a bi-propellant back up
to its Xenon Ion Propulsion System (XIPS). Equipped with advanced triple
junction solar cells, the satellite is designed to generate 18 kilowatts of
power at start of service and 15.5 kilowatts at the end of its 15-year design
life.

XM is America’s #1 satellite radio service. With over 692,000 subscribers
as of June 30th, XM is on pace to have more than one million subscribers later
this year. XM is available on a wide variety of GM, Honda, Toyota, Infiniti,
Nissan and Audi models. GM recently announced that it has manufactured more
than 500,000 XM-equipped vehicles and that it will exceed the 1 million mark
by March 31, 2004. XM radios, including the critically acclaimed Delphi XM
SKYFi radio are available at Best Buy, Circuit City, Wal-Mart and other major
retailers nationwide.

A unit of The Boeing Company, Integrated Defense Systems is one of the
world’s largest space and defense businesses. Headquartered in St. Louis,
Boeing Integrated Defense Systems is a $25 billion business. It provides
systems solutions to its global military, government and commercial customers.
It is a leading provider of intelligence, surveillance and reconnaissance; the
world’s largest military aircraft manufacturer; the world’s largest satellite
manufacturer and a leading provider of space-based communications; the primary
systems integrator for U.S. missile defense; NASA’s largest contractor; and a
global leader in launch services