A class action complaint was filed against XM in the Southern District of New York, in which it is alleged that XM infringed and violated certain rights under United States federal and New York laws by virtue of its activities in connection with XM Recording Devices (defined term). To resolve the claims against it, XM has agreed to pay a minimum of $5,377,177 USD and has agreed to an injunction and other relief as fully set forth in the Settlement Agreement.

You may be a member of one of the Settlement Classes. Definitions of the Settlement Classes, and further information concerning this matter, can be found at www.notavxm.com. Please note that the deadline to file a Proof of Claim is June 20, 2011.