Calian Press Release 2000

CALIAN'S SYSTEMS ENGINEERING DIVISION WINS UPLINK DELIVERY SYSTEM CONTRACT FOR XM SATELLITE RADIO
System to Utilize Caldera LINUX Operating System

Kanata, Ontario Thursday, February 3, 2000 - Calian (TSE:CTY) is pleased to announce that its Systems Engineering Division has been awarded the uplink delivery and management system software contract from XM Satellite Radio Inc. (NASDAQ: XMSR). Under the terms of the contract, Calian's System Engineering Division (SED) will design, manufacture and install the Uplink Delivery System that encodes and relays radio programming from XM Radio's programming centre in Washington, D.C., to XM Radio's two high-powered Hughes 702 geo-stationary satellites for broadcast to XM-Ready receivers anywhere in the continental United States.

XM Satellite Radio Inc. is developing a new band of radio for the United States. Starting in first half of 2001, XM Radio will offer up to 100 channels of digital-quality music, news, sports, talk and children's programming, which will be transmitted directly from the company's powerful satellites to vehicle, home and portable XM-Ready radios coast-to-coast for a monthly subscription fee of $9.95. XM Radio will offer a broad selection of listening choices created by its XM Originals programming unit and by premier brand-name content providers, including USA TODAY, NASCAR, the BBC World Service, Black Entertainment Television, the Hispanic Broadcasting Corporation (formerly Heftel), Bloomberg News Radio, C-SPAN Radio, CNN/Financial Network, CNN/Sports Illustrated, The Weather Channel, One-On-One Sports and many others.

Calian's Uplink Delivery System (UDS) is an integral part of XM Radio infrastructure. XM Radio's uplink streams are created from encoded audio with custom application software developed by Calian's Systems Engineering Division. Associated equipment for the RF uplink is also provided by Calian under the contract. The Uplink Delivery System will be located at XM's headquarters in Washington, DC.

"This project for XM Radio builds on our success in programs related to direct radio broadcast via satellite," commented Ray Basler, VP and General Manager, Systems Engineering Division. "The experience and credibility we have established in this field was a significant factor in being awarded this new contract for XM Radio. We're now one of the world's leading providers of ground-based equipment for digital satellite radio applications," said Basler.

XM Radio is backed by a group of industry-leading strategic investors, including General Motors, Clear Channel Communications and DIRECTV, respectively the leading car, radio and satellite TV companies in the US. XM Radio has agreements with nine leading consumer electronics companies to manufacture and distribute radios capable of receiving the XM Radio signal, including Sony, Alpine and Pioneer Electronics Corporation, Delphi Delco Electronic Systems, Audiovox, Clarion, Mitsubishi Electronic Automotive America, Motorola and Sharp Corporation. In addition, XM Radio has entered into a 12-year distribution agreement with General Motors to integrate XM-Ready radios into GM's vehicles commencing in 2001.

Calian's Systems Engineering Division mission is to provide the satellite industry with the rapid delivery of dependable, flexible systems and services that fully satisfy customers' needs in testing, operating and managing their satellite systems. The Systems Engineering Division product lines include In-orbit Test, Satellite Spectrum Monitoring, and Telemetry, Tracking and Command Systems, as well as Satellite Gateways, Network Control Systems and Up-link Stations. Customers include major satellite manufacturers, operators and service providers worldwide. Custom manufacturing services are provided to customers in the local and national markets.

Calian sells e-business and Information Technology (IT) professional services, including management consulting, IT consulting, telecommunications systems engineering, outsourcing and IT staffing.

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