AOL & XM Satellite Create Radio Service

The service brings together both XM and the AOL Radio Network products and programming to form the world’s largest combined digital radio network. The new co-branded service will include a free, webradio offering and an enhanced premier radio offering that will be available to AOL members at no additional charge and as a premium service to consumers on the web. The new offerings, which areexpected to roll out beginning this summer with the launch of AOL’s next generation web portal, will be promoted to an audience of upwards of 100 million consumers online.

AOL and XM will co-promote their unique, original programs across their networks including to XM’s nearly 3.8 million subscribers – the number one satellite radio audience – and to AOL’s more than 100 million unique monthly visitors across the AOL network of properties.

In addition to establishing the new online radio service, XM will integrate select AOL original programs such as Radio KOL, AOL Music Sessions and AOL Music LIVE! into its satellite radio service, which is available to listeners in cars as well as on home entertainment and portable devices. The companies will also work together to develop new programs and services for the online and satellite space.

The new co-branded online radio service will feature a best-of-breed selection of AOL Radio Network and XM Radio exclusive and original content such as AOL’s Radio KOL, AOL Music Sessions and AOL Music LIVE! and original XM programs such as Artist Confidential and Then…Again.. Live! and more. Consumers will have the ability to select the offering that best meets their needs. The co-branded offerings will include:

— A new, unlimited listening web radio service featuring a sampling of 20 XM stations plus 130 AOL Radio stations that will be available free on the web;

— An enhanced version of AOL’s popular premium radio service featuring over 70 XM stations plus over 130 AOL Radio original and third party stations that will be available to AOL members at no additional charge and to consumers on the web for a low monthly fee.

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