Honda Motor Co., Ltd., and OnStar, a wholly owned subsidiary of General Motors Corp. (GM), today announced an agreement to offer OnStar mobile communications services in Honda and Acura vehicles beginning with the 2002 Acura RL luxury sedan sold in the United States. In addition, Honda, OnStar and XM Satellite Radio have also agreed to jointly develop opportunities for future telematics and data applications. American Honda Motor Co. Inc. and XM Satellite Radio are also negotiating to provide digital satellite radio service to Honda and Acura customers in the United States.

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“Acura and Honda have helped pioneer the application of satellite navigation systems in the auto industry. OnStar and XM Satellite Radio provide us with an opportunity to offer state-of-the-art, mobile communications services that will enhance the driving experience for our customers,” said Tom Elliott, executive vice president of American Honda Motor Co. Inc.

“We are delighted to deliver OnStar’s safety, security and information services to Honda and Acura drivers,” said Chet Huber, president of OnStar. “This agreement is evidence of our aggressive strategy to expand the OnStar subscriber base beyond GM brands.”

“XM’s satellite connection to the vehicle provides the potential for additional in-vehicle services,” said Hugh Panero, XM’s president and CEO. “This agreement reinforces our commitment to work with car manufacturers to develop future services that meet the needs of their customers.”

The agreement to offer OnStar mobile communications services in Honda and Acura vehicles is part of the relationship between GM and Honda that began in December 1999 when the two automakers announced plans for a powertrain cross supply arrangement. General Motors will use a Honda engine and transmission for a vehicle under development, and Isuzu, a GM group company, will supply Honda with diesel engines for the European market. At the time of that initial agreement, GM and Honda announced plans to discuss collaboration on future technological and business opportunities of mutual benefit. The agreement includes no equity stake by either company in the other, and each will continue independent technology development activities.

About Honda

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Honda designs, manufactures and markets automobiles, motorcycles and power products worldwide. Honda is the largest engine maker in the world, producing nearly 11 million engines annually for its three product lines, including sales of engines to other manufacturers. Honda also builds products in more than 100 manufacturing plants in 33 countries, employing more than 125,000 associates globally.

About OnStar

OnStar, a wholly owned subsidiary of General Motors, is the nation’s leading provider of in-vehicle safety, security and information services. Using the Global Positioning System (GPS) satellite network and wireless technology, OnStar links the driver and vehicle to the OnStar Center, where advisors are available to offer real-time, personalized service 24 hours a day, 365 days a year. OnStar services include automatic notification of air bag deployment, stolen vehicle tracking, emergency services, roadside assistance with location, remote door unlock, remote diagnostics, route support, OnStar Concierge, and convenience services locator. New services include Personal Calling, which allows drivers to make and receive hands-free, voice-activated personal calls from their vehicles without an additional cellular contract; and OnStar Virtual Advisor, which will deliver to the vehicle personalized Internet-based information such as news headlines, sports scores, stock quotes, weather conditions and e-mail through a hands-free, voice-activated, audio interface.

About XM Satellite Radio

XM Satellite Radio Inc. (Nasdaq: XMSR), based in Washington, D.C., is developing a new band of radio. Starting the first half of 2001, XM Radio will package up to 100 channels of digital-quality music, news, sports, talk and children’s programming directly from its two powerful satellites to vehicle, home and portable XM-Ready radios coast-to-coast for a monthly subscription fee.