908937--3/1/2007--SIRIUS_SATELLITE_RADIO

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{cost, operation, labor}

{capital, credit, financial}

{product, market, service}

{system, service, information}

{control, financial, internal}

{product, liability, claim}

{customer, product, revenue}

{debt, indebtedness, cash}

{regulation, government, change}

{regulation, change, law}

{acquisition, growth, future}

Failure of our satellites would significantly damage our business. Failure to comply with FCC requirements could damage our business. We may from time to time modify our business plan, and these changes could adversely affect us and our financial condition. Our business might never become profitable. Programming is an important part of our service, and the costs to renew our programming arrangements may be more than anticipated. Higher than expected costs of attracting new subscribers and retaining current subscribers could adversely affect our financial performance and operating results. Higher subscriber turnover could adversely affect our financial performance and operating results. Weaker than expected market and advertiser acceptance of our service could adversely affect our advertising revenue and results of operations. We attract a substantial number of our new subscribers during the fourth quarter and our inability to deliver competitive products during the fourth quarter could have a material adverse affect on our operations. Failure of third parties to perform could adversely affect our business. We may be exposed to liabilities associated with the design, manufacture and distribution of SIRIUS radios. Rapid technological and industry changes could make our service obsolete. Our substantial indebtedness could adversely affect our financial health. Our national broadcast studio, terrestrial repeater network, satellite uplink facility or other ground facilities could be damaged by natural catastrophes or terrorist activities. Consumers could pirate our service. Risks Relating to the Pending Merger with XM Radio Uncertainty about the merger and diversion of management could harm us or the combined company, whether or not the merger is completed. Failure to complete the merger for regulatory or other reasons could adversely affect our stock price and our future business and financial results. The anticipated benefits of the merger may not be realized fully or at all or may take longer to realize than expected.

Full 10-K form ▸

908937--3/1/2007--SIRIUS_SATELLITE_RADIO_INC