Worldspace Commissions Terrestrial Repeater Prototypes for European Mobile Services

June 30, 2006 - WORLDSPACE(R) Satellite Radio (Nasdaq: WRSP) today announced it has signed an agreement with Sodielec, a French company specializing in transmission solutions, to develop terrestrial repeater prototypes that will enable WORLDSPACE to expand its satellite radio and data services to automobiles across Western Europe, beginning in Italy.

Sodielec was selected through an RFP process that included corporations from around the world. The contract is valued at 800,000 Euros and includes prototype design and development as well as guaranteed pricing for subsequent large-scale production of at least one model. WORLDSPACE expects to evaluate the Sodielec prototypes in Q4 2006 with production and deployment slated for 2007, when it expects to launch Europe's first digital satellite radio and data service for both portable and vehicular devices.

"This agreement represents a key component of the execution of WORLDSPACE's commitment to our European business objectives by extending the unique, personal experience already enjoyed by consumers in India, Africa and the Middle East, to Italy and the rest of Western Europe," said Alexander P. Brown, co-chief operating officer, WORLDSPACE.

In May 2006, WORLDSPACE Italia S.p.A., a majority-owned subsidiary of Worldspace, Inc.'s European holding company, Viatis Satellite Radio (VSR), received approval from the Italian Ministry of Communications to launch a subscription satellite radio service in Italy, and to use the frequency band 1479.5-1492 MHz for the operation of the corresponding hybrid satellite/terrestrial network. Based on that authorization, Italy will become the first market in Western Europe to enjoy a wide variety of specialized audio content from the WORLDSPACE Satellite Radio Network using its mobile technology. The WORLDSPACE system already uses the only frequency band harmonized for satellite radio over Europe.

"Italian consumers are passionate about music and entertainment," Benoit Chereau, chief executive officer of WORLDSPACE's European subsidiary, VSR. "They are an ideal market for us and we look forward to rolling out our services across the country. We will build on our experiences in Italy, as we expand to other European markets to ensure that WORLDSPACE continues to deliver the highest quality programming to our subscribers."

Today, WORLDSPACE has two operational satellites that cover nearly two- thirds of the world's population. Its AfriStar(TM) satellite covers the continent of Africa, the Middle East and most of Western Europe. The Company's strategy has been to roll out a European service on a sequential, country-by-country basis, which is now beginning with Italy. A third satellite that is already built and in storage in Toulouse, France, will provide even broader coverage over Western Europe and will enable consumers to have access to approximately 50 channels of diversified sports, talk and commercial-free music programming at the service's maturity.

Terrestrial repeaters, or "gap fillers," are towers that enable WORLDSPACE to transmit its content to consumers who do not have direct line of sight to a satellite. These towers are most commonly used in urban areas where the satellite signal may be blocked by large buildings or other man-made obstacles. By deploying terrestrial repeaters, WORLDSPACE can ensure that subscribers in cars or using portable devices can enjoy a seamless listening experience.