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Business News (more headlines) 05-24-2000

MP3.com Sees Strong International Demand For First Music Subscription Service

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SAN DIEGO, May 23, 2000 -- MP3.com (Nasdaq: MPPP) is reporting strong international demand for what is believed to be the Internet's first on-demand music subscription system.

"We expected healthy traffic domestically, but what really surprised us was the international demand," said Chris Montgomery, vice president of channel development at MP3.com and head of the company's new Subscription Division. "Using our existing caching technology, a global audience is getting a quality listening experience."

Subscribers to MP3.com's Classical Music Channel (channels.mp3.com) reside in countries that include the United States, Canada, Australia, Japan, Italy, France, the United Kingdom, Argentina, Korea, Ireland, Spain, Finland, Hong Kong, and others.

Following a 14-day, risk-free listening offer, the Classical Music Channel's monthly fee of $9.99 includes unlimited streaming access to thousands of tracks, 100% downloadable, from the collection. Included are such renowned artists as Luciano Pavarotti, The Royal Philharmonic Orchestra, and Alicia de Larrocha. MP3.com says new CD releases will be featured every month, with subscribers receiving a 50% discount on all Classical Music Channel CDs.

"The rollout of our subscription system was a monumental undertaking and we leveraged the massive database, storage, personalization, accounting and delivery infrastructure we built over the last two years for this effort," stated Michael Robertson, MP3.com's chairman and chief executive officer. "To capitalize on this technology infrastructure, we formed a new MP3.com Subscription Division dedicated to delivering the technology, while developing economic relationships with content providers to build additional channel choices."

MP3.com's Classical Music Channel is the first of many proposed on-demand subscription channels for MP3.com. Other channels slated for release include alternative, jazz, children's, urban, world and more. For more information on MP3.com's Channel Services, contact Chris Montgomery at channels@mp3.com.

The MP3.com subscription service offers flexible content management and administration tools. Content providers can access daily auditing and usage statistics such as subscriber reports, artist's page views, and the number of song plays for precise royalty reconciliation. Other features include a "just-in-time" CD manufacturing process that allows content providers to create and sell CDs online.

"Subscription channels are a way for music, video and spoken word producers to potentially transform idle back catalogs into highly profitable, recurring revenue streams," said Montgomery, who comes to MP3.com by way of BMG Entertainment and RioPort.com. "Because MP3.com offers built-in security features, encoding, storage, caching and web maintenance, no technical expertise is required. Creating a tailored music experience to reach passionate music fans has always been a challenge, but subscription channels make this a reality today."

About MP3.com
MP3.com is pioneering a revolutionary approach to the promotion and distribution of music. MP3.com uses the Internet and file formats that make music files smaller, which enables a growing number of artists to distribute and promote their music worldwide while enabling consumers to conveniently access this expanding music catalog. MP3.com's site contains over 424,000 songs and audio files from more than 67,000 artists. MP3.com believes this represents one of the largest collections of digital music to be found on the Internet. Consumers can search for, listen to and download music free of charge. In addition, MP3.com is recognized as the premier online Music Service Provider (MSP) which allows users to access, manage, and listen to their personal music collection anytime and anywhere in the world, using any web-enabled device or application. MP3.com shares are traded on the Nasdaq National Market under the ticker symbol MPPP. The company is based in San Diego, California. For more information on MP3.com, visit www.mp3.com.

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