Zomba Records Group Launches Digital Music Initiative; Zomba content now available as commercial digital downloads through Liquid Audio and Amplified's online networks

Business Wire, Dec 14, 2000

Business Editors and Entertainment Writers

NEW YORK--(BUSINESS WIRE)--Dec. 14, 2000

Zomba Recording Corp., the world's largest independent music group, today announced the recent launch and commencement of its first commercial digital music initiative, a program involving a trio of partnerships with Reciprocal Music, Amplified.com, and most recently, Liquid Audio, Inc. (Nasdaq:LQID).

Zomba's digital distribution initiative, which launched online in November, entails the release of 120 individual tracks and several full-length albums from across Zomba's catalog of labels. Additionally, through Amplified's network, Zomba will make available video downloads with certain selected tracks. Single tracks will be offered from a variety of Zomba's artists and will range in price from $1.99 - $3.99. Albums will be priced from $14.98 - $16.98.

The digital music initiative's launch caps a process under which Zomba has sought to assemble a world-class network of digital rights management and online distribution partnerships designed to help the company capitalize on commercial opportunities from digital downloads. The initiative simply represents Zomba's first steps towards developing an overall strategy targeted at capturing broader opportunities in the rapidly developing online music business.

Zomba's network of non-exclusive partners in its digital music initiative will include two primary distribution "wings."

In one wing, Amplified and Reciprocal will work together to bring Zomba's digital music to a variety of sites. Amplified offers Zomba a range of technical "end to end" services, including encoding, hosting, customer service, and liaison with a variety of participating sites. Amplified will incorporate clearinghouse services from Reciprocal Music, which Zomba announced a relationship with in spring, 2000. Reciprocal will provide the digital clearing services that will let Zomba and Amplified know what tracks have been downloaded and accessed by consumers. Downloads from Zomba artists will be made available in the Windows Media format. Participating sites in this wing presently include Music.com and CIMs. The list of participating sites is expected to expand significantly over coming weeks.

The recently announced other wing of Zomba's digital music initiative includes Liquid Audio, who will provide a turnkey set of digital music services to Zomba. The Liquid Music Network includes more than 1,000 affiliate retail and music websites. Zomba's downloads will be available to hundreds of these web sites including Bestbuy.com, Compact Disc World, Harmony House, J&R Music World, Launch.com, and Listen.com and Listen.com's syndication network partners, including AltaVista, Excite@Home, GO.com, Lycos, NBCi, and Yahoo. Liquid Audio will distribute Zomba's music in Liquid Audio and Windows Media formats. The company will provide Zomba with encoding, hosting, digital rights management, customer service, and clearinghouse functions in the non-exclusive relationship. Zomba also hopes to expand the present list of sites offering Zomba downloads via the Liquid Music Network.

"Digital distribution of music is clearly the basis of many new business models that we expect to see emerging over the next few years. We believe that these new partnerships are critical steps towards assisting us in dealing with these models," said Ivan Gavin, Senior Vice President, Commercial Operations & Finance, Zomba Recording Corp.

About Zomba Recording Corporation

Zomba Recording Corporation is part of the Zomba Group of Companies, the world's largest independent music group. The Zomba Label Group encompasses eight record labels: flagship label Jive Records, Jive Electro, Silvertone, Verity, Brentwood, Benson, Reunion and Volcano. Zomba is home to some of the biggest contemporary pop, R&B, gospel, and hip-hop artists in the world, including *NSYNC, Britney Spears, and the Backstreet Boys, Grammy Award winners R. Kelly and Jars Of Clay; R&B crooners Joe and Liberty City (FLA); hip-hop icons E-40, KRS-1 and Mystikal; gospel legends Fred Hammond, Hezekiah Walker, and John P. Kee; and up & coming sensations Steps, Groove Armada, Syleena Johnson and Aaron Carter. Additional information is available at http://www.jiverecords.com.