XM Canada reports strong growth for fourth quarter and fiscal 2007



    Total revenue triples as subscriber base increases by 102 per cent in
    2007

    NHL exclusivity leads to best fiscal performance since launch

    Cash usage declines to less than $1 million for the quarter

    TORONTO, Nov. 14 /CNW/ - Canadian Satellite Radio Holdings Inc.
(TSX: XSR) ("CSR") today announced its financial results for the fourth
quarter and year ended August 31, 2007.

    
    2007 Year End Highlights
    Year ended August 31, 2007 compared to August 31, 2006

        -  Subscriber base more than doubles to 306,300 from 151,600 in 2006
        -  Total revenue more than triples to $21.2 million
        -  Industry leading Subscriber Acquisition Cost(*) (SAC) of $51
        -  Cost Per Gross Addition(*) (CPGA) declines to $208, an improvement
           of 22 per cent over 2006
        -  Increased programming to 130 channels, including 69 commercial-
           free music channels
        -  XM becomes exclusive satellite radio carrier of the NHL through to
           2015
        -  Signed unique agreement to provide XM content across Rogers
           wireless, cable and internet platforms adding to our family of
           wireless, which already includes TELUS

    Fourth Quarter Financial Highlights
    Fourth quarter 2007 compared to fourth quarter 2006

        -  32,900 self-paying subscribers added
        -  Total revenue doubles to $6.8 million
        -  Cash and short-term investments decline by $0.8 million
        -  SAC remains consistent at $58
        -  CPGA improves by 24 per cent to $183
        -  Completed private placement of $20 million convertible unsecured
           debentures following close of the fourth quarter

    (*) See section 3.0 entitled "Operating Definitions" found in
        Management's Discussion & Analysis for the quarter and year ended
        August 31, 2007 found at www.cdnsatrad.com and www.sedar.com.
    

    "We had an exceptional fourth quarter as our exclusive 10-year agreement
with the NHL attracted new subscribers across the country," said John Bitove,
Chairman and Chief Executive Officer of CSR. "In addition, while retail sales
have been slow for much of the year, we are pleased to report that in
September the satellite radio category grew by 39 per cent and XM Canada
captured 50 per cent of all satellite radio sales through major retailers.
Canadian consumer appetite for satellite radio is strong and it is clear we
are gaining momentum entering the holiday shopping season."

    Financial Performance

    For the three months ended August 31, 2006 and 2007, revenue was
$3.4 million and $6.8 million, respectively, an increase of 100 per cent or
$3.4 million. The increase was directly attributable to our increasing
subscriber base.
    Adjusted Operating Loss for the three months ended August 31, 2006 and
2007 was $14.4 million and $12.2 million respectively, an improvement of
$2.2 million. As CSR continues to grow its subscriber base and manage
programming, general & administrative and marketing costs, it expects Adjusted
Operating Loss to improve. During the three months ended August 31, 2007, CSR
incurred approximately $2 million of non-cash, non-recurring advertising &
marketing expenses related to the write-off of prepaid advertising costs. CSR
also incurred approximately $1.5 million of special charges, which are
non-recurring and are not part of its normal course of operations. Excluding
these two expenses, Adjusted Operating Loss was approximately $8.7 million.
    SAC was $59 and $58 for the three months ended August 31, 2006 and 2007,
respectively. Cost per gross addition improved by 24 per cent to $183 for the
quarter ended August 31, 2007 from $242 for the comparable period in 2006.
Average revenue per unit was $11.78 and $11.33 for the three months ended
August 31, 2006 and 2007, respectively.
    "We are pleased with our strong fiscal management and accomplishments in
2007," said Bitove. "This was a solid year of growth and cost reductions and
with our exclusive automotive installations in 2008, we are positioned to meet
our objective of being free cash flow positive in the fourth quarter of 2008."

    CSR achieved the following milestones through its automotive partnerships
since the end of the third quarter of 2007:

    
        -  285,000 vehicles equipped with factory installed satellite radios
           that are now on the road or on order
        -  Honda Canada began factory installing XM satellite radios in many
           2008 model year vehicles and has expanded the factory installation
           of XM within its Acura line for the 2008 model year
        -  Hyundai adds XM as standard feature on the 2008 Santa Fe SUV, in
           addition to the previously announced Sonata, Veracruz and Azera.
           This latest announcement makes Hyundai our most aggressive factory
           install OEM partner
        -  Nissan Canada now offers XM as a factory installed option on the
           entire 2008 vehicle line up and every 2008 Infiniti model will
           have XM as a standard factory-installed feature
        -  Toyota's Lexus brand begins exclusively factory installing
           XM Canada radios in select models

    In addition, the following announcements were made since the end of the
2007 third quarter:

        -  XM becomes exclusive satellite radio carrier of NHL and XM Canada
           expands NHL play-by-play channels from six to nine to offer
           "Every Team. Every Game. Exclusively on XM" through to the year
           2015
        -  Completes $20 million convertible debt offering
        -  Announces the addition of NHL Hour, a candid, interactive talk
           show that marks the first time that a sports league has given fans
           direct access to key decision-makers
        -  Launches ATN-Asian Radio channel, North America's first South
           Asian channel
        -  Expands channel offering to include Radio Disney, ESPN Radio,
           ESPNEWS, IndyCar Series Racing, PAC 10 and Big 12. With 20 more
           channels than the competition, XM Canada now offers more
           programming choice for subscribers
        -  Enhances lineup of plug-n-play satellite radios with the addition
           of the XpressEZ, XpressR and XpressRC, an innovative radio with
           advanced split-screen technology and colour display
    

    Quarterly conference call and audio webcast

    CSR will hold a conference call on Thursday November 15, 2007 at 11 a.m.
EST to discuss its financial results for the fourth quarter and year ended
2007. To participate in the conference call, please dial 416-644-3418 within
the Toronto area, or 1-800-732-6179 (toll-free) outside of Toronto. A live
audio webcast will be available at 
www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2076580.
    An archived recording of the conference call will be available from
1 p.m. EST on Thursday November 15, 2007 until midnight on Saturday
December 15, 2007 by dialing 416-640-1917 within the Toronto area, or
1-877-289-8525 (toll-free) outside of Toronto (passcode 21251745 followed by
the number sign).

    About Canadian Satellite Radio Holdings Inc.

    Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM 
Canada(TM) and is Canada's premium digital audio entertainment and information
company with the best signal coverage across the country.
    XM Canada offers listeners the most unique Canadian and international
programming including exclusive satellite radio coverage of EVERY NHL(TM)
GAME, as well as PGA TOUR(TM) and Major League Baseball(TM), the deepest
playlist, plus news, talk, sports, entertainment and children's content.
Acura, Buick, Cadillac, Chevrolet, General Motors, GMC, Harley Davidson,
Honda, Hummer, Hyundai, Infiniti, Lexus, Nissan, Pontiac, Toyota, Saab,
Saturn, Suzuki and Subaru offer XM radios in more than 150 different vehicles
for model year 2008.
    XM Satellite Radio Inc. is the number one satellite radio company in
North America with more than 8 million subscribers. In Canada, XM is offered
on TELUS Mobile Radio(TM) and Rogers(TM) Communications wireless, cable and
internet platforms and is also the exclusive music channel provider on Air
Canada's flights and is available in select Avis Budget Group rental vehicles.
    A free three-day trial of XM Radio Online is available at
http://listen.xmradio.ca. Visit www.xmradio.ca for programming and
subscription information.
    To find out more about Canadian Satellite Radio Holdings Inc. (TSX: XSR),
visit our website at www.cdnsatrad.com.

    Forward-Looking Statements

    Certain statements included above may be forward-looking in nature. Such
statements can be identified by the use of forward-looking terminology such as
"expects," "may," "will," "should," "intend," "plan," or "anticipates" or the
negative thereof or comparable terminology, or by discussions of strategy.
Forward-looking statements include estimates, plans, expectations, opinions,
forecasts, projections, targets, guidance or other statements that are not
statements of fact. Although CSR believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to have been correct. CSR's forward-looking
statements are expressly qualified in their entirety by this cautionary
statement. CSR makes no commitment to revise or update any forward-looking
statements in order to reflect events or circumstances after the date any such
statement is made. Additional information identifying risks and uncertainties
is contained in CSR's filings with the Canadian securities regulators,
available at www.sedar.com.


    
    CANADIAN SATELLITE RADIO HOLDINGS INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    As at August 31, 2007 and 2006

                                                   August 31,      August 31,
                                                        2007            2006
                                              -------------------------------
    ASSETS
    Current assets
    Cash                                       $   9,524,931   $  45,188,214
    Short term investments                         5,281,000               -
    Accounts receivable                            4,904,803       2,125,367
    Inventory                                      2,462,975         600,124
    Prepaid expenses and other assets              2,401,315       6,882,247
    Restricted investments                        13,043,109      13,663,023
                                              -------------------------------
                                                  37,618,133      68,458,975
    Restricted investments                         6,301,677      19,370,939
    Deferred financing costs                       4,456,280       5,146,280
    Property and equipment                        20,878,489      23,221,760
    Contract rights, distribution rights and
     computer software                           219,897,424     239,648,067
                                              -------------------------------
    Total assets                                 289,152,003     355,846,021
                                              -------------------------------
                                              -------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable and accrued liabilities      20,412,856      13,516,770
    Deferred revenue                              10,445,788       2,969,366
                                              -------------------------------
                                                  30,858,644      16,486,136
    Long-term debt                               107,434,473     110,660,000
    Deferred revenue                               3,626,134       1,032,289
    Other long-term liabilities                      376,316         310,405
                                              -------------------------------
    Total liabilities                            142,295,567     128,488,830
                                              -------------------------------

    Shareholders' equity
    Share capital                                312,948,883     312,595,362
    Contributed surplus                           30,129,704      26,344,137
    Deficit                                     (196,222,151)   (111,582,308)
                                              -------------------------------
    Total shareholders' equity                   146,856,436     227,357,191
                                              -------------------------------
    Total liabilities and shareholders' equity   289,152,003     355,846,021
                                              -------------------------------
                                              -------------------------------



    CANADIAN SATELLITE RADIO HOLDINGS INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT (UNAUDITED)
    For the years ended August 31, 2007, 2006 and 2005

                                        2007            2006            2005
                              -----------------------------------------------
    Revenue                    $  21,244,380   $   6,949,282   $           -
                              -----------------------------------------------
    Operating expenses
    Cost of revenue               25,313,304      19,050,684               -
    Indirect costs                         -         827,125       3,528,914
    General and administrative    16,201,717      18,465,217       3,172,480
    Special charges                2,024,080               -               -
    Stock-based compensation       3,143,643      23,694,846               -
    Marketing                     28,509,494      28,021,159               -
    Amortization of intangible
     assets and property
     & equipment                  22,409,443      15,914,239           3,865
                              -----------------------------------------------
                                  97,601,681     105,973,270       6,705,259
                              -----------------------------------------------
    Loss before the undernoted   (76,357,301)    (99,023,988)     (6,705,259)
    Interest revenue               2,491,256       2,619,481               -
    Interest expenses            (15,287,703)     (8,279,303)              -
    Foreign exchange gains         4,513,905       1,980,232               -
                              -----------------------------------------------
    Net loss for the year        (84,639,843)   (102,703,578)     (6,705,259)
    Deficit - Beginning of year (111,582,308)     (8,878,730)     (2,173,471)
                              -----------------------------------------------
    Deficit - End of year       (196,222,151)   (111,582,308)     (8,878,730)
                              -----------------------------------------------
                              -----------------------------------------------
    Basic and fully diluted
     loss per share                    (1.78)          (2.99)        (17,833)
                              -----------------------------------------------
                              -----------------------------------------------
    

    CANADIAN SATELLITE RADIO HOLDINGS INC.
    RECONCILIATION OF LOSS BEFORE THE UNDERNOTED TO
    ADJUSTED OPERATING LOSS (UNAUDITED)

    Adjusted Operating Loss is defined as Operating loss before the
undernoted excluding amortization, stock-based compensation to employees,
directors, officers and service providers, and non-cash costs paid by our
parent company. We believe that Adjusted Operating Loss, as opposed to
Operating loss or Net loss, provides a better measure of our core business
operating results and improves comparability.
    This non-GAAP measure should be used in addition to, but not as a
substitute for, the analysis provided in statement of operations. We believe
Adjusted Operating Loss is a useful measure of our operating performance and
is a significant basis used by our management to measure the operating
performance of our business. While amortization and stock-based compensation
are considered operating costs under generally accepted accounting principles,
these expenses primarily represent non-cash current period allocation of costs
associated with long-lived assets acquired or constructed in prior periods and
non-cash employee and service provider compensation. Costs paid by our parent
company are non-cash costs related to the licence application process and are
not related to ongoing operations of the business.
    Adjusted Operating Loss is a calculation used as a basis for investors
and analysts to evaluate and compare the periodic and future operating
performances and value of similar companies in our industry, although our
measure of Adjusted Operating Loss may not be comparable to similarly titled
measures of other companies. Adjusted Operating Loss does not purport to
represent operating loss or cash flow from operating activities, as those
terms are defined under generally accepted accounting principles, and should
not be considered as an alternative to those measurements as an indicator of
our performance.
    We do not report Adjusted Operating Loss for periods prior to fiscal 2006
as we were a development stage company focused on obtaining a license from the
CRTC.

    
    ($000's)                            12 Months Ended      3 Months Ended
                                           August 31,          August 31,
                                         2007      2006      2007      2006
                              -----------------------------------------------
    Reconciliation of loss before the
     undernoted to Adjusted Operating
     Loss
    Operating loss before the
     undernoted                        (76,357)  (99,024)  (18,622)  (20,828)
    Add back non-Adjusted Operating
     Loss items included in Operating
     Loss Amortization                  22,409    15,914     5,599     5,470
    Stock-based compensation             3,144    23,695       736       759
    Costs paid by parent company           205     3,049        53       186
                              -----------------------------------------------
    Adjusted Operating Loss            (50,599)  (56,366)  (12,234)  (14,413)



    CANADIAN SATELLITE RADIO HOLDINGS INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    For the years ended August 31, 2007, 2006 and 2005

                                        2007            2006            2005
                              -----------------------------------------------
    Cash provided by (used in)
    Operating activities
    Net loss for the year      $ (84,639,843)  $(102,703,578)  $  (6,705,259)
    Add (deduct): Non-cash
     items
      Costs paid by parent
       company                       204,905       3,049,041               -
      Stock-based compensation
       expense                     3,143,643      23,694,846               -
      Amortization of
       intangible assets          19,278,227      14,075,636               -
      Amortization of property
       and equipment               3,131,216       1,838,603           3,865
      Accrued interest - debt         71,154         519,161               -
      Accrued interest
       receivable                 (1,266,730)       (814,774)              -
      Amortization of deferred
       financing costs               690,000         373,752               -
      Interest accretion
       expense                        35,079          25,299               -
      Writeoff of prepaid
       advertising                 2,000,000               -               -
      Unrealized foreign
       exchange gains             (3,634,039)     (2,098,253)              -
    Net change in non-cash
     working capital related
      to operations               18,229,966        (206,745)      6,701,394
                              -----------------------------------------------
    Net cash used in operating
     activities                  (42,756,422)    (62,247,012)              -
                              -----------------------------------------------
    Investing activities
    Restricted investments                 -     (41,015,595)              -
    Payment of interest
     expense from restricted
     investments                  14,270,438       7,396,855               -
    Purchase of short-term
     investment                   (5,850,000)              -               -
    Purchase of property and
     equipment                    (1,524,723)    (24,055,466)              -
    Rebate received on prior
     year purchase of computer
     software                        432,157               -               -
    Purchase of computer
     software                        (83,240)     (8,570,715)              -
                              -----------------------------------------------
    Net cash used in investing
     activities                    7,244,632     (66,244,921)              -
                              -----------------------------------------------
    Financing activities
    Initial public offering
     - net of issuance costs               -      50,042,354               -
    Shares issued to CSR
     Investments                           -      15,000,000               -
    Deferred financing costs               -      (5,520,032)              -
    Proceeds from long-term
     debt                                  -     115,420,000               -
                              -----------------------------------------------
    Net cash provided by
     financing activities                  -     174,942,322               -
                              -----------------------------------------------
    Foreign exchange loss on
     cash held in foreign
     currency                       (151,493)     (1,262,195)              -
                              -----------------------------------------------
    Change in cash and cash
     equivalents during the
     year                        (35,663,283)     45,188,194               -
    Cash and cash equivalents
     - Beginning of year          45,188,214              20              20
                              -----------------------------------------------
    Cash and cash equivalents
     - End of year                 9,524,931      45,188,214              20
                              -----------------------------------------------
                              -----------------------------------------------

    Supplemental cash flow
     disclosures
    Rights acquired through
     issuance of shares                    -     245,152,988               -
    Property and equipment
     purchases in accounts
     payable                               -         736,778       1,729,148
    Computer software purchases
     in accounts payable                   -         123,499       1,006,634
    Prepaid advertising
     purchased through issuance
     of equity                             -       2,000,000               -
    Utilization of XM credit
     facility                      2,136,400               -               -
    Additions to property and
     equipment and long-term
     obligations for asset
     retirement obligations           30,832         268,119          16,987
    

    %SEDAR: 00022901E




For further information:

For further information: Investors, (416) 408-6899,
investor.relations@xmradio.ca; Media, (416) 203-6666, xmradio@wilcoxgroup.com


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