XM Satellite Radio Holdings Inc. reported a change to its subscriber and financial guidance for 2006, projecting that it will end 2006 with 8.5 million subscribers, resulting in subscriber revenues of $835 million and EBITDA loss (excluding stock-based compensation, other income/expense, equity in net losses of affiliates, and loss from deleveraging transactions) of $235 million. XM reaffirmed that it remains on track to have positive cash flow from operations for the fourth quarter of 2006 and on an annual basis for 2007. “Subscriber growth for the first quarter of 2006 was consistent with our initial guidance of nine million subscribers by the end of 2006,” said Hugh Panero, President and CEO of XM Satellite Radio in a statement. “Although XM has regained retail market share since the first of the year, the satellite radio category has seen an overall softness at retail during the second quarter to date, and we have been later than anticipated with broad availability of our new products.” The revised guidance of 8.5 million subscribers represents growth of more than 40 percent throughout the course of the year. The revised subscriber guidance leads to a reduction in subscriber revenues and a narrower EBITDA loss for the year. XM expects to add a total of more than 2.5 million net new subscribers in 2006. XM, however, is currently working through regulatory and legal challenges, the resolution of which could affect future product availability and operating results, and require another revised guidance.