ITS America INFO Forum – Session #17 Consumer Road Weather Applications 4 June 07

2 XM Proprietary & Confidential The Dissemination Challenge… Fixed Base Users Transportation Professionals Consumers (home/office) Mobile Users Real-time service to users in vehicles and via hand-held devices Sources of Detailed Graphical Road Weather Information (Similarly: Sources of Detailed Graphical Traffic Information) Internet, TV, etc. ?

3 XM Proprietary & Confidential Cost-Effective, Mass-Market Dissemination The most successful consumer data services are built on top of mass-adoption entertainment/communication platforms –Data services on Cellular Phones –High speed internet via Cable TV Satellite Radio is the fastest growing mobile entertainment platform –Over 15 million subscribers today –Strong adoption by the automotive industry (both OEM and Aftermarket) –Proven capability for data services “XM is committed to the automotive industry, to the ITS industry, and to playing a strong role in the development and delivery of breakthrough mobile data services” –XM Chairman, Gary Parsons, in keynote at ITS America Annual Meeting 2006

4 XM Proprietary & Confidential Who We Are… XM is an Entertainment & Information Brand… …built on a unique national network & receiver technology platform

5 XM Proprietary & Confidential XM Satellite #1 XM Repeater XM Satellite #2 XM Repeater XM Network Un-matched CONUS coverage in both urban and rural environments Flexible, all-digital platform with simultaneous Audio + Data Low cost, low power, mobile receivers with small antenna Broadcast format achieves low cost, national data delivery Long-term technology stability, security, backwards compatibility

6 XM Proprietary & Confidential The XM Experience…in Your Car XM Platform is uniquely suited to the in-vehicle environment –Seamless coast-to-coast, urban/rural coverage –170+ channels of audio entertainment & information –Driver-oriented data: XM NavTraffic + NavWeather services –Future services: Parking, Video and More

7 XM Proprietary & Confidential Growth of XM OEM Installations New vehicle TIV remains flat through 2010 (16-17M vehicle sales per year) OEM partner share ~60% (GM, Toyota, Nissan, Honda, Hyundai, Porsche, etc.) XM ~50% penetration of OEM partner sales by 2010 (which equates to ~30% penetration of all new vehicle sales)

8 XM Proprietary & Confidential Continuously updated traffic data enables GPS navigation systems to provide personalized traffic information for each driver’s individual needs The best available traffic information, aggregated from multiple government and commercial sources Widely adopted by leading OEMs and aftermarket navigation systems providers NavTraffic platform scaled for future growth - increased coverage/flow availability - evolving data gathering technology - intra-urban signal availability XM NavTraffic

9 XM Proprietary & Confidential XM System Architecture for Traffic Gathering Traffic Content Delivery (Pipe to the Vehicle) Incident Data Flow Data (Multiple Government & Commercial Sources) Traffic Aggregator TMC Alert C message format Traffic information displayed on navigation system map XM provides a flexible platform for real-time delivery of the best available traffic data to the vehicle. The platform is scalable for the anticipated growth in traffic data and coverage.

10 XM Proprietary & Confidential XM WX Satellite Weather XM WX has been widely adopted by leading avionics and navigation system manufacturers as the new industry standard for Aviation, Marine and Emergency Response Flying Magazine Editors’ Choice Award 2005 XM WX is now factory-specified on over 80% of all new GA aircraft

11 XM Proprietary & Confidential XM NavWeather (In Development) New approach to weather for the automobile, optimized for vehicle navigation systems (OEM & a/market) Consolidated, interpreted, geo-referenced weather information derived from advanced meteorological analysis Focused on driver needs: –Adverse road & atmospheric conditions –Warnings & Advisories –Current conditions & forecasts 1 st application will be Bushnell ONIX-400 –Handheld GPS device for outdoorsman –Previewed at CES, available Mid 07 OEM implementations in development

12 XM Proprietary & Confidential XM System Architecture for Road Weather Application Gathering Weather Data Delivery (Pipe to the Vehicle) Weather Data (Multiple Government & Commercial Sources) Weather Partner Weather information displayed on vehicle or handheld GPS navigation system map XM provides a flexible platform for real-time deliver of the best available weather data directly to consumers (for both in vehicle and handheld portable applications). The platform will accommodate ongoing improvement in the available source weather data, providing a continually improving service for the end user. Baron

13 XM Proprietary & Confidential Summary New developments in data collection promise significantly enhanced road weather information Effective, mass-market dissemination of this information, directly to vehicles on the road, will maximize the potential benefits to road users XM provides a proven platform for delivery of comprehensive, real-time traffic and weather data to vehicles, with strong adoption by leading vehicle manufacturers

Roderick MacKenzie VP, Advanced Applications & Services