XM Satellite Radio and WCS Wireless announced the termination of their agreement for XM to acquire WCS Wireless. The principal assets of WCS Wireless are wireless spectrum licenses in certain geographic areas throughout the United States.

At the time of the acquisition agreement between XM and WCS Wireless, announced July 13, 2005, the parties expected to close their transaction by this time, with the timing dependent on receipt of necessary government approvals. Despite both parties’ efforts to obtain that approval, it has not been forthcoming to date. Accordingly, XM and WCS Wireless have agreed to terminate the acquisition agreement in order to free WCS Wireless to pursue other alternatives for its spectrum licenses.

WCS’ primary assets are wireless spectrum licenses that cover approximately 163 million people in the United States, including 15 of the top 20 metropolitan markets. The WCS spectrum includes 10 Mhz of bandwidth, on average, in frequency bands adjacent to XMSR’s satellite radio spectrum.