MusicSource U.S.A. makes announcement

Business Wire, Dec 15, 1995

PURCHASE, N.Y.--(BUSINESS WIRE)--Dec. 15, 1995--MusicSource U.S.A. ("MusicSource")(OTC Electronic Bulletin Board Symbol: MUSE) announced today that it acquired all of the assets of the Marlboro Leather division of Steven Madden, Ltd. ("Marlboro Leather").

Marlboro Leather manufactures and sells leather for use in manufacturing shoes and leather accessories.

The acquisition of the assets of Marlboro Leather will enable MusicSource to diversify its business. The assets primarily consist of the Marlboro Leather name, Marlboro Leather's inventory of leathers, and Marlboro Leather's accounts receivable. "We believe that the acquisition will enable us to develop new business opportunities and will contribute directly to our profitability," stated Stephen J. Drescher, the chief executive officer of MusicSource.

MusicSource is a development stage company which was formed to improve the delivery of music products to end users, to provide distribution structure for the music industry and to take advantage of recent technological advances in the computer and telecommunications industries to distribute licensed music copyrights.

The company envisions the acquisition as only one step in its efforts to further develop and diversify its business.

CONTACT: MusicSource U.S.A.

Stephen J. Drescher

914/696-4425