SILVER SPRING, Md., May 1 /PRNewswire-FirstCall/ -- WORLDSPACE(R) Satellite Radio , one of the world leaders in satellite-based digital radio services, today announced it has signed a contract with Fraunhofer Institute for Integrated Circuits IIS, part of Fraunhofer Gesellschaft, the world's leading institution of application-oriented research, to develop a receiver reference design (or engineering blueprint) for the European market. The agreement brings WORLDSPACE's European subscribers one step closer to mobile satellite radio service, beginning with Italy.

The WORLDSPACE European receiver will be the first satellite-terrestrial hybrid receiver developed to comply with the satellite digital radio (SDR) standard, newly established by the European Telecommunications Standards Institute (ETSI). The standard enables the combination of terrestrial repeater networks and satellites, which will help to maintain excellent service quality for consumers in difficult reception environments. WORLDSPACE Europe contributed technological proposals to the SDR working group from the beginning of the ETSI process.

WORLDSPACE's European strategy is to roll out its service on a sequential, country-by-country basis. In addition to Italy, the Company's target markets include France, Germany, Spain, Turkey and Poland, representing a combined population of approximately 361 million people and 148 million automotives.

"We are pleased to continue our long-standing relationship with WORLDSPACE during this important juncture of their European expansion," said Michael Schlicht, programme manager satellite radio at Fraunhofer IIS. "For over 10 years our two companies have worked closely together on a number of satellite radio initiatives including the development of a 'proof-of-concept' for WORLDSPACE's overall satellite radio system, to the development and implementation of the technology used for the terrestrial retransmission of the satellite signal on the ground."

"Fraunhofer IIS is recognized as the premier applications research firm in the world for the digital distribution of content," said Hussein Sallam, Chief Technology Officer, WORLDSPACE Satellite Radio. "As we move closer to our planned launch of mobile service in Europe, we continue to bring together the best technology partners. They will enable us to deliver the highest quality service to our subscribers. Based on its global reputation, industry experience and 10-year history with WORLDSPACE, Fraunhofer IIS was an obvious choice."

The reference design developed by the Fraunhofer Institute for Integrated Circuits IIS will be the certified design of the core receiver technology, from which physical implementation of WORLDSPACE's European automotive and consumer products will be based. This announcement builds on the momentum of several previous agreements instrumental in the delivery of mobile satellite radio services in Europe.

In January 2007, WORLDSPACE signed an agreement with Telecom Italia to design and deploy a terrestrial repeater network throughout Italy. Previously, in May 2006, WORLDSPACE Italia received approval from the Italian Ministry of Communications to launch a subscription-based satellite radio service in Italy, utilizing 12.5 MHz of the L-band frequency spectrum, the only frequency band harmonized for satellite radio over Europe.

Today, the Company has two operational satellites that cover Europe, Africa and the Middle East, China, India and Southeast Asia. A third satellite, already built and in storage in Toulouse, France, is expected to provide the additional capacity needed to extend its service offering over Europe, by providing consumers with approximately 50 channels per country of diversified sports, talk and commercial-free music programming at the service's maturity.

About Fraunhofer Institute for Integrated Circuits IIS

Founded in 1985, the Fraunhofer Institute for Integrated Circuits IIS in Erlangen, Germany, with its 480 staff members, ranks first in employees and revenues among the Fraunhofer Institutes.

Fraunhofer IIS has achieved worldwide recognition for the development of the audio coding method mp3.

Fraunhofer IIS provides research services on a contract basis and licenses technology in the areas of audio and video source coding, multimedia realtime systems, digital radio broadcasting and digital cinema systems, integrated circuits and sensor systems, design automation, wireless, wired and optical networks, localization and navigation, imaging systems and nanofocus X-ray technology, high-speed cameras, medical sensor solutions, and communications technology in transport and logistics.

Its budget of 58 million Euro is financed primarily by projects from industry and public institutions, with less than 20 percent subsidized by state and federal funds.

For more information, visit http://www.iis.fraunhofer.de/ About WORLDSPACE(R) Satellite Radio

Based in the Washington, DC metropolitan area, WorldSpace, Inc. is the world's only global media and entertainment company positioned to offer a satellite radio experience to consumers in more than 130 countries with five billion people, driving 300 million cars. WORLDSPACE delivers the latest tunes, trends and information from around the world and around the corner. WORLDSPACE subscribers benefit from a unique combination of local programming, original WORLDSPACE content and content from leading brands around the globe including the BBC, CNN, Virgin Radio UK, NDTV and RFI.

WORLDSPACE's satellites cover two-thirds of the earth's population with six beams. Each beam is capable of delivering up to 80 channels of high quality digital audio and multimedia programming directly to WORLDSPACE Satellite Radios anytime and virtually anywhere in its coverage areas. WORLDSPACE is a pioneer of satellite-based digital radio services (DARS) and was instrumental in the development of the technology infrastructure used today by XM Satellite Radio. For more information, visit http://www.worldspace.com/.

Forward-looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the Company's Form 10-K, filed with the Securities and Exchange Commission, and other subsequent filings. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.

CONTACT: Judith Pryor of WORLDSPACE, +1-301-960-1242,
jpryor@worldspace.com; or Dan Martin, +1-617-585-2780, dmartin@brodeur.com,
for WORLDSPACE; or Marc Briele, +49-9131-776-16-30,
marc.briele@iis.fraunhofer.de, or Michael Schlicht, +49-9131-776-439,
michael.schlicht@iis.fraunhofer.de, both of Fraunhofer IIS

Web site: http://www.worldspace.com/
http://www.iis.fraunhofer.de/