Air Canada launches XM Canada programming today



    
           32 million passengers exposed to XM experience each year

     XM Canada begins exclusive programming of in-flight music channels
    

    TORONTO and MONTREAL, March 1 /CNW/ - Today Air Canada (TSX: AC.a; AC.b)
launched its new in-flight music service "XM enRoute", powered exclusively by
XM Canada (TSX: XSR), the first and only partnership of its kind in Canada.
    This partnership will allow for XM Canada channels to be available to all
32 million passengers who fly with Canada's national airline and dominant
market leader, Air Canada. In addition, this partnership will provide
unsigned, new and emerging French and English language Canadian musicians
unprecedented exposure to a larger audience.
    "This is an historic day for Canadian travellers and for XM Canada. We
are very excited about this landmark partnership with Air Canada and it
reinforces our continued commitment to provide XM Canada's outstanding
programming across a variety of platforms," said Stephen Tapp, President and
Chief Operating Officer of XM Canada. "XM Canada is supportive and fully
committed to showcasing the deep roster of independent Canadian and
international musicians in several genres, to as large and diverse an audience
as possible."
    XM Canada's best-in-class programming - in both English and French - is
now available on both the existing legacy and the new touch-screen in-flight
entertainment systems. XM Canada will also engage in various marketing
activities both on-board the aircraft and in Air Canada's Maple Leaf Lounges
across the country.
    "We are pleased to provide our passengers with a wide variety of
bilingual musical selections through our partnership with XM Canada. We
believe XM Canada's best-in-class programming and unique Canadian content is
the right fit for our passengers," said Sean Menke, Executive Vice President
and Chief Commercial Officer at Air Canada. "This agreement advances Air
Canada's strategy to provide our customers choice and control over their
travel through such innovations as our à la carte pricing that allows people
to tailor tickets to their individual needs, multi-trip flight passes, and
self-check-in, either remotely through the internet or at the airport through
kiosks."
    For more information on this service offering, please visit
www.xmradio.ca/aircanada.

    About Air Canada

    Air Canada is Canada's largest domestic and international airline and the
largest provider of scheduled services in the Canadian market, the Canada-U.S.
transborder market and the international market to and from Canada. Together
with its regional affiliate Jazz, Air Canada serves 32 million customers
annually and provides direct passenger service to 157 destinations on five
continents. Air Canada is a founding member of Star Alliance, providing the
world's most comprehensive air transportation network.

    About Canadian Satellite Radio Holdings Inc.

    Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM
Canada(TM) through its subsidiary, Canadian Satellite Radio Inc. XM is
Canada's premium digital audio entertainment and information company with the
best satellite coverage in the country and offering a unique lineup of premier
Canadian and international content.
    XM Canada offers listeners up to 100 channels of unique and exclusive
programming including the most NHL(TM) games, PGA TOUR(TM) and Major League
Baseball(TM) coverage, the deepest play list, and news, talk, sports,
entertainment and children's programming. After this season, XM will become
the exclusive provider of NHL games on satellite radio. Acura, Buick,
Cadillac, Chevrolet, General Motors, GMC, Harley Davidson, Honda, Hummer,
Hyundai, Infiniti, Lexus, Nissan, Pontiac, Toyota, Saab, Saturn, Suzuki and
Subaru will offer XM radios in more than 115 different models of vehicles for
model year 2007.
    XM has an exclusive Canadian license from U.S.-based XM Satellite Radio
Inc. (NASDAQ:   XMSR), the leading satellite radio provider in the U.S. with
more than 7.6 million subscribers. XM is offered on TELUS Mobile Radio(TM) and
as of March 2007, will be the exclusive music provider to all of Air Canada's
flights. A live stream of selected XM Canada channels is available via a
three-day complimentary trial of XM Radio Online at http://listen.xmradio.ca.
To subscribe to XM Canada online or for more information about XM Canada's
programming lineup and radio choice, visit www.xmradio.ca.
    To find out more about Canadian Satellite Radio Inc. (TSX: XSR), visit
our website at www.cdnsatrad.com.

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For further information:

For further information: XM Canada media contact: Wilcox Group, (416)
203-6666, xmradio@wilcoxgroup.com; Air Canada media contacts: Isabelle Arthur
(Montreal), (514) 422-5788; Peter Fitzpatrick (Toronto), (416) 263-5576;
Angela Mah (Vancouver), (604) 270-5741


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