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SB,

We don't have any knowledge that isn't public -- so we do not know anything about February 14 or the chipset situation. We only know what you know or what is publicly available.

Our main concern is actually more of a longer-term concern. Look at XM's operating costs today. They're quite large. Even a few million subscribers will not overwhelm operating costs enough to make operations profitable. (As we know. They need 4 million at least.)

Now when we looked at technology adoption rates for Internet, broadband Internet, cable TV, satellite TV, CD players, VHS and so forth, we realized that satellite radio would need to top ALL of them in order for both companies to reach 4 million subs before 2005. Even for one company to reach 4 million in less than three years would be a record. Meanwhile, the costs are likely to be higher than projected, and even if they're not, they're continually high, and debt is significant.

We view the business as very vulnerable (longer term) because it is cost heavy and getting enough people to buy radios and pay for service is going to be an expensive challenge, we believe. Meanwhile, the clock is ticking.

We hope it works out though. We don't wish any company -- someone's dream -- to fail. But in the end money -- profits -- is what makes it work or not. Sirius even more than XM now is going to fight an uphill battle for enough subscribers in time.

Foolishly,

Jeff

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