The Wherehouse Amplifies Its Presence On the Web

Business Wire, Nov 3, 1998

TORRANCE, Calif.--(BUSINESS WIRE)--Nov. 3, 1998--

589-Store Music & Video Retail Chain Enters Unique Venture

With amplified.com

The Wherehouse, the second largest music retailer in the U.S., is creating a co-branded website with amplified.com, a pioneer in the realm of digital music distribution, announced Jason Fiber, Vice-President of Internet Services for The Wherehouse.

The as-yet-to-be-named Wherehouse and amplified.com site will offer uniquely themed categories for online music enthusiasts to purchase for download and/or on custom-made CDs. Linked to The Wherehouse Website (www.wherehouse.com), the site gives fans access to rare and highly collectible catalogs.

The site will offer a wide range of hard-to-find selections, from surf pop to blues, and from alternative, pop and goth to modern rock. Surf pop and rock lovers can sift through and sample songs from Del-Fi Records to create their ultimate Del-Fi CD. Blues aficionados have the breadth of the coveted Alligator Records and Fat Possum Records catalogs at their fingertips. Alternative, pop and "goth" rockers can pick and choose from albums by '80s trailblazers Bauhaus, Peter Murphy, Gary Numan and The Charlatans UK, as well as modern rock icons such as Buffalo Tom and Stereolab, all from the Beggars Banquet Records catalog. The site, which will be promoted in print ads for both The Wherehouse and amplified.com, will also add new catalogs regularly.

Customers will have the option of receiving their themed Custom-CD the next day or via regular mail. Those customers with CD-burning equipment can opt to download their set of songs directly to their computer.

This site positions The Wherehouse as a forerunner in the retail industry with respect to online custom compilations and direct-to-consumer digital download sales. "While traditional retailers have tended to be wary of digital distribution, The Wherehouse embraces this new technology and the opportunities its offers to better serve our customers," Jason Fiber stated. "As retailers first and foremost, we view this relationship in the way we do relationships with other distributors and one-stops. We're pleased to provide our customers as many outlets and formats as possible in which to purchase music."

Wayne Parker, president and founder of amplified.com, echoes the sentiment: "We're thrilled that a company of the size and stature of The Wherehouse understands that retail stores and shopping websites aren't mutually exclusive. Online shopping will never replace conventional retail outlets, but it does offer a number of advantages, particularly when it comes to custom-designed CDs. We think this venture with The Wherehouse will strengthen both of our respective customer bases, and we look forward to a lucrative, mutually beneficial relationship."

About The Wherehouse

The Wherehouse (Torrance, CA) is engaged in the business of selling pre-recorded music and video products and other entertainment related products, and the rental of videocassettes and other products. It is owned by Cerberus Partners L.P., Alvarez & Marsal and other limited shareholders. The company owns and operates nearly 600 stores in 33 states and recently purchased the Blockbuster Music chain. In addition, it owns and operates The Rocky Mountain Record Chain in Colorado, The Odyssey Records Chain in Nevada and the Tu Musica chain in California.

About amplified.com

amplified.com is a 4-year old provider of Internet music services. The company recently launched the largest Internet site for song downloads, featuring over 6,000 songs available for purchase. It is the first web site to integrate that feature with the option to order custom CDs for any of its licensed songs.