XM Canada reports strong revenue growth in second quarter

    Operating highlights:

    -   More than 100,000 XM-equipped GM Canada vehicles delivered

    -   The entire 2008 model year of Infiniti vehicles to have XM Satellite
        Radio factory installed as standard equipment - a Canadian first

    -   Landmark partnership with Rogers Communications to provide XM
        programming across the Rogers wireless, cable and Internet platforms

    -   Achieved 237,500 subscribers and aligned subscriber definitions more
        closely with industry standards to include factory-activated vehicles

    -   Increased to 120 channels to provide more music and programming
        choices than any other satellite radio provider in Canada

    -   Launching eight-year NHL exclusive partnership; more than 1,000 games
        each season on XM beginning July 1 of this year

    TORONTO, April 16 /CNW/ - Canadian Satellite Radio Holdings Inc. ("CSR")
(TSX:XSR), today reported its financial results for the second quarter ended
February 28, 2007 based on the achievement of 237,500 subscribers.
    "We are pleased with our performance this quarter and are confirming our
position as Canada's premium digital audio entertainment and information
company," said John Bitove, Chairman and CEO of Canadian Satellite Radio
Holdings Inc.
    "We will continue to build our subscriber base through innovative
partnerships such as our new agreement with Rogers Communications, which is
another landmark deal for XM Canada and another first for the industry," said
Bitove. "Through an aggressive team effort, we are on track to reach one
million subscribers by 2010."

    Financial results

    For the three-month period ended February 28, 2007, XM Canada reported
revenue of $4.9 million, an increase of 27 per cent over the previous quarter
and a 325 per cent increase over the second quarter of 2006. This increase in
revenue is due to an overall increase in subscriptions, activation fees, sale
of merchandise through our direct fulfillment channel, advertising revenue on
Canadian-produced channels and other revenue from partnership subscribers.
    Adjusted operating loss(1) for the three-month period was $15.8 million,
an improvement of $1.6 million over the second quarter of 2006. Adjusted
operating loss is expected to improve as we continue to grow our subscriber
base and manage operating expenses.
    For the second quarter, Average Revenue Per Unit (ARPU) was $10.90, a
decrease of $1.11 from the second quarter of 2006. We incurred Subscriber
Acquisition Costs (SAC) of $53 per gross addition, a decrease of $16 from our
second quarter of 2006. Cost Per Gross Addition (CPGA) was $207, an increase
of $13 over our second quarter of 2006.
    ARPU and SAC decreased from the second quarter of 2006 due to our fiscal
2007 holiday promotion, which included service credits and hardware rebates
that have been amortized over the term of the subscriber payment plan and were
accounted for against revenue, as well as the introduction of multi-year plans
during the summer of 2006. SAC was improved by an increase in the subscriber
additions through our automotive partnerships. CPGA increased as a result of
our first full holiday season marketing campaign.
    Operational expenses for the three-month period ended February 28, 2007
included general and administrative expenses of $4.1 million, marketing of
$9.3 million and cost of revenue of $7.3 million.

    New partnerships

    -  XM Canada and Rogers Communications formed a comprehensive partnership
       that provides XM Canada programming across Rogers wireless, cable and
       Internet platforms. Rogers customers can subscribe to XM Canada
       programming regardless of whether they are using a wireless handset,
       watching cable television or surfing the Internet.

    -  XM Canada began a new partnership with Avis Budget Group Inc. Across
       Canada, pre-installed XM satellite radios are now available in full-
       size rental vehicles manufactured by General Motors and other
       automotive partners.

    -  Air Canada launched its new in-flight music channel service "XM
       enRoute", powered exclusively by XM Canada. This is the only
       partnership of its kind in Canada and allows XM Canada programming to
       reach the more than 32 million passengers who fly with Air Canada each

    "XM Canada is expanding rapidly across a number of platforms and changing
the way that Canadians experience satellite radio," said Bitove. "We have the
best network and satellite coverage to provide outstanding programming to
subscribers right across the country."

    Subscriber definition alignment

    In an effort to align our definitions more closely with industry norms,
our subscriber numbers now include vehicles factory-activated with the XM
service whereby automakers have agreed to pay for a portion or all of the
trial period service. Based on the new definitions, the total count was
237,500 subscribers as of February 28, 2007 which is comprised of 219,300
paying subscribers and 18,200 OEM promotional subscribers.

    Conference Call/Webcast

    John I. Bitove, Chairman and Chief Executive Officer, Stephen Tapp,
President and Chief Operating Officer and Michael Washinushi, Chief Financial
Officer will discuss the second quarter results on Monday, April 16, 2007 at 2
p.m. (ET). To participate in the conference call, please dial 1-416-644-3415
(Toronto) or 1-800-733-7571 (Toll Free) to participate.

    A live audio webcast (listen-only mode) of the conference call will be
    available at
    and www.cdnsatrad.com. The slides to accompany the financial results are
    found at www.cdnsatrad.com.

    An archived recording of the conference will be available at
1-416-640-1917 (Toronto) or 1-877-289-8525 (Toll-free) (Passcode: 21225126
followed by the number sign) on April 16, 2007 after 4 p.m. EDT until April
30, 2007 at 11:59 p.m. EDT.

    Forward-Looking Statements
    Certain statements in this media release 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

    Related financial documents, including Interim Financial Statements and
Management Discussion and Analysis, have been filed with SEDAR for posting to
www.sedar.com. Copies of Canadian Satellite Radio Holdings Inc. financial
documents are also available upon request through the www.cdnsatrad.com
website and from the contact listed on this media release.

    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 the most 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
on Rogers Communications wireless, cable and Internet platforms. XM Canada is
the exclusive music channel provider on Air Canada's flights and pre-installed
radios are available in select Avis Budget Group rental vehicles. 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.

    (1)  Adjusted operating loss defined in Consolidated Statement of
         Operations and Deficit.

    Canadian Satellite Radio Holdings Inc
    Interim Consolidated Balance Sheet (Unaudited)

                                                  February 28,     August 31,
                                                         2007           2006
                                                            $              $

    Current assets
    Cash                                           18,428,307     45,188,214
    Short term investment (note 2)                  5,850,000              -
    Accounts receivable                             3,999,334      2,125,367
    Inventory                                         222,326        600,124
    Prepaid expenses and other assets               6,078,249      6,882,247
    Restricted investments (note 3)                14,447,914     13,663,023

                                                   49,026,130     68,458,975

    Restricted investments (note 3)                13,803,574     19,370,939

    Deferred financing costs (note 3)               4,801,280      5,146,280

    Property and equipment                         22,266,216     23,221,760

    Contract rights, distribution rights
     and computer software                        229,958,530    239,648,067

    Total assets                                  319,855,730    355,846,021

    Liabilities and Shareholders'
     Equity (Deficiency)

    Current liabilities
    Accounts payable and accrued liabilities       13,921,658     13,516,770
    Deferred revenue                                7,248,077      2,969,366

                                                   21,169,735     16,486,136

    Long-term debt (note 3)                       117,000,000    110,660,000

    Deferred revenue                                2,858,847      1,032,289

    Long-term obligations                             352,960        310,405

    Total liabilities                             141,381,542    128,488,830

    Shareholders' Equity (Deficiency)
    Share capital (note 4)                        312,785,862    312,595,362
    Contributed surplus                            28,256,451     26,344,137
    Deficit                                      (162,568,125)  (111,582,308)

    Total shareholders' equity (deficiency)       178,474,188    227,357,191

    Total liabilities and shareholders'
     equity (deficiency)                          319,855,730    355,846,021

    Canadian Satellite Radio Holdings Inc.
    Interim Consolidated Statement of Operations and Deficit (Unaudited)

                              Three months ended            Six months ended
                                     February 28,                February 28,
                              2007          2006         2007           2006
                                 $             $            $              $

    Revenue              4,861,572     1,144,931    8,700,254      1,190,941

    Operating expenses
    Cost of revenue      7,323,338     5,190,056    12,920,004     8,319,699
    Indirect costs               -             -             -       827,125
    General and
     administrative      4,124,858     4,012,465     8,939,310     9,600,470
     (note 4)              842,105    22,244,546     1,687,541    22,244,546
    Marketing            9,260,430     9,385,347    15,526,672    14,015,595
    Amortization of
     intangible assets
     and property and
     equipment           5,602,545     4,712,630    11,204,531     5,191,310

                        27,153,276    45,545,044    50,278,058    60,198,745

    Loss before the
     undernoted        (22,291,704)  (44,400,113)  (41,577,804)  (59,007,804)

    Interest revenue       771,782       445,337     1,501,381       445,337

    Interest expenses    4,081,607       656,926     7,821,868       656,926

    Foreign exchange
     loss(gain)          1,462,332      (650,389)    3,087,526      (651,229)

    Net loss for the
     period            (27,063,861)  (43,961,313)  (50,985,817)  (58,568,164)

    Deficit -
     Beginning of
     period           (135,504,264)  (23,485,581) (111,582,308)   (8,878,730)

    Deficit - End
     of period        (162,568,125)  (67,446,894) (162,568,125)  (67,446,894)

    Basic and fully
     diluted loss per
     common share            (0.57)        (1.05)        (1.07)        (2.81)

    Canadian Satellite Radio Holdings Inc.
    Reconciliation of Loss before the undernoted to Adjusted Operating Loss

                                              3 Months Ended  3 Months Ended
                                               Feb. 28, 2007   Feb. 28, 2006
    Loss before the undernoted as reported       (22,291,704)    (44,400,113)
    Add back non-Adjusted Operating Loss
     items included in Operating loss
      Amortization                                 5,602,545       4,712,630
      Stock-Based Compensation                       842,105      22,244,546
    Costs paid by parent company                      50,601               0
    Adjusted Operating Loss                      (15,796,453)    (17,442,937)


    Adjusted Operating Loss

    Adjusted Operating Loss is defined as Loss before the undernoted
excluding amortization, stock-based compensation to employees, directors,
officers and service providers, and non-cash costs paid by 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 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.


    Canadian Satellite Radio Holdings Inc.
    Interim Consolidated Statement of Cash Flows (Unaudited)

                              Three months ended            Six months ended
                                     February 28,                February 28,
                              2007          2006         2007           2006
                                 $             $            $              $

    Cash provided by (used in)

    Operating activities
    Net loss for
     the period        (27,063,861)  (43,961,313) (50,985,817)   (58,568,164)
    Add (deduct):
     Non-cash items
      Costs paid by
       parent company       50,601             -      100,011      2,862,764
       expense             842,105    22,244,546    1,687,541     22,244,546
      Amortization of
       assets            4,820,554     4,245,099    9,644,053      4,687,474
      Amortization of
       property and
       equipment           781,991       467,531    1,560,478        503,836
      Accrued interest
       - debt              531,308             -       12,147              -
      Accrued interest
       receivable         (332,168)            -     (725,592)             -
      Amortization of
       deferred financing
       costs               186,270             -      345,000              -
      Interest accretion
       expense               8,694        15,857       17,328         16,409
      Unrealized foreign
       losses(gains)     1,471,573      (650,389)   3,360,112       (651,229)
    Net change in
     non-cash working
     capital related to
     (note 7)            2,721,734   (15,656,528)   7,006,605     (4,374,406)

    Net cash used in
     activities        (15,981,199)  (33,295,197) (27,978,134)   (33,278,770)

    Investing activities
     investments                 -   (41,015,595)           -    (41,015,595)
    Payment of interest
     from restricted
     investments         7,458,750             -    7,458,750              -
    Purchase of short
     term investments   (5,850,000)            -   (5,850,000)             -
    Purchase of
     property and
     equipment            (225,539)  (17,073,694)  (1,341,712)   (17,073,694)
    Purchase of
     computer software     (54,001)   (4,781,761)     (78,015)    (4,781,761)

    Net cash used
     in(provided by)
     activities          1,329,210   (62,871,050)     189,023    (62,871,050)

    Financing activities
    Initial public
     offering - net of
     issuance costs              -    50,042,354            -     50,042,354
    Shares issued to
     CSR Investments             -    15,000,000            -     15,000,000
    Deferred financing
     costs                       -    (4,641,862)           -     (4,641,862)
    Proceeds from
     long-term debt              -   115,420,000            -    115,420,000

    Net cash provided
     by financing
     activities                  -   175,820,492            -    175,820,492

    Foreign exchange
     on cash held in
     foreign currency      461,032      (674,082)   1,029,204       (673,242)

    Change in cash
     during the
     period            (14,190,957)   78,980,163  (26,759,907)    78,997,430

    Cash - Beginning
     of period          32,619,264        17,287   45,188,214             20

    Cash - End
     of period          18,428,307    78,997,450   18,428,307     78,997,450

    Supplemental cash
     flow disclosures
    Rights acquired
     through issuance
     of shares                   -             -           -     230,412,000
    Property and
     purchases in
     accounts payable            -     2,672,888           -       2,672,888
    Computer software
     purchases in
     accounts payable            -       632,514           -         632,514
    Prepaid advertising
     purchased through
     issuance of equity          -     2,000,000           -       2,000,000
    Additions to
     property and
     equipment and
     obligations for
     asset retirement
     obligations                 -       89,579            -         512,873

    %SEDAR: 00022901E

For further information:

For further information: for investor information, please contact: (416)
408-6899, investor.relations@xmradio.ca; for media information, please
contact: Wilcox Group, (416) 203-6666, XMradio@wilcoxgroup.com

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