XM ( XMSR) is extending its exclusive contract with Honda ( HMC) for another 10 years.

The Washington, D.C., pay-radio shop says Honda America has agreed to continue to offer factory-installed XM radios in its vehicles until 2016.

"We are pleased to continue this relationship with American Honda through 2016, broadening our reach to their loyal customers," XM auto chief Steve Cook said in a press release Tuesday.

XM radios are available as a factory-installed option on the Honda Civic, Civic Hybrid, CR-V, Ridgeline, Accord, Accord Hybrid, Pilot, Odyssey and Element. XM is also standard equipment in all Acuras.

The news comes as XM announces that Microsoft's ( MSFT) new Vista operating system will include 80 channels of commercial-free radio as part of its music hub application. The service will cost $8 a month for new XM subscribers.

XM shares rose 28 cents to $14.18 in premarket trading Tuesday.

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