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FCC And FTC Investigate XM

4/26/2006 10:40:00 AM Eastern

XM has disclosed that the Federal Communications Commission (FCC) had notified the company on April 25 that it had tested the Delphi XM SKYFi2 radio and found that it was not in compliance with transmitter emission limits.

The letter asked XM to provide information on testing, emissions and other matters relating to the radio.

Also XM reported that on the same day, it also received a letter from the Federal Trade Commission (FTC) stating that it is conducting an inquiry to determine if XM’s marketing activities are in compliance with acts including the Telemarketing Sales Rule.

XM said it now conducting an internal review on both matters and will cooperate fully with both agencies.

Responding to questions at an earnings conference on April 27 regarding the FTC inquiry, XM CEO Hugh Panero noted “To our knowledge we comply with all laws under the purview of the FTC.We’re going to have to go through the process of finding out what they are really focusing on.We feel confident we’ll comply fully with the request.”

Panero said XM has 30 days to investigate and respond to the FCC inquiry.Panero also noted that XM had no prior notice of either inquiry.

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