Platinum Entertainment, Inc. and LiveOntheNet.com Join Forces To Bring 15,000-Item Music Catalog to Internet Entertainment Network

Business Wire, Jan 12, 2000

Business & Entertainment Editors

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Jan. 12, 2000

Platinum Entertainment, Inc. (NASDAQ: PTET), the largest U.S. independent record label, announced today a licensing agreement with LiveOntheNet.com, a leading Internet entertainment network and member of the divine interVentures, Inc. family of B2B Internet commerce companies.

This alliance will create the world's largest source of free digital music with well-known songs and artists in MP3 and other download formats. The site will also feature a variety of video and audio programming including live concert events, studio production and delayed events. The www.heardon.liveonthenet.com site will feature free digital downloads of over 15,000 songs from such well-known artists and bands as Pete Townshend, Sixpence None the Richer, Taylor Dayne, Peter Cetera, The Beach Boys, The Band, Dionne Warwick, Eddie Rabbit, The Oak Ridge Boys, The Winans, George Clinton, Johnny Gill, and hundreds more. The site will also offer Platinum's huge catalog of classical music featuring the works of Mozart, Beethoven as well as every other major classical composer.

The site will open immediately featuring a portion of the Platinum catalog followed by posting 50 to 100 highly recognizable new songs on a weekly basis. In addition, the site will soon feature a revolutionary radio component in which any listener will be able to immediately download radio broadcast songs for free as they are listening to that song. Terms of the agreement stipulate that in exchange for a fee, LiveOntheNet.com will have free promotional download rights to Platinum's entire catalog through their combined websites.

"This alliance will create a unique entertainment destination where audio and visual broadcasts and free music download rights are combined," says Steve Devick, CEO of Platinum Entertainment, Inc. "Teaming with LiveOntheNet is a tremendous next step in our emerging role as a business to business Internet content provider."

"More and more, businesses look to the Internet as their primary marketing medium. This content creates one of the most compelling attractions for our business customers wanting to attract customers to their offerings. In addition it creates one whale of an entertaining Internet destination," said Andrew "Flip" Filipowski, chairman and CEO of divine interVentures. "We believe the LiveOntheNet effort through the HeardOn Internet music label will be the force to be reckoned with for new music talent and will become the venue of choice for emerging artists. This agreement significantly strengthens both Platinum Entertainment and LiveOntheNet.com, and helps further establish LiveOntheNet.com as one of the premier entertainment destinations on the Web."

LiveOntheNet.com Chief Operating Officer Gary West anticipates the interest the venture will generate: "We think that the explosion of activity that takes place when millions of monthly viewers meet Platinum's 15,000-item catalog will rock the Internet."

Platinum Entertainment, Inc. produces, licenses, acquires, markets and distributes high quality recorded music in the pop, adult contemporary, country, blues, gospel, urban and classical formats, primarily under its Platinum, Platinum Nashville, CGI, House Of Blues, and Intersound Classical labels. Platinum's products include new releases, as well as compilations that enable Platinum to exploit its catalog of master recordings.

LiveOntheNet.com, a member of the divine interVentures family, is one of the world's leading entertainment networks, hosting a variety of video and audio programming from live events to studio productions to delayed events. LiveOntheNet.com produces its own events and works in association with Media Partners and Content Partners and with a variety of media, artists and content owners.

About divine interVentures, Inc.

Chicago-based divine interVentures, inc. is an Internet operating company actively engaged in business-to-business e-commerce through a network of partner companies. Known as the Internet Zaibatsu, divine's family of companies collaborate to create success through a tightly linked network. divine acquires significant interests in, operates, and provides services to its partner companies. divine's services include operational support, strategic guidance, incubation, marketing, web design and development, sales, IT hosting, legal, and administration. These services provide partner companies with an operating framework so they can focus on their core business, shorten time to market, and build Internet commerce leadership. More information is available at www.divine.com.

This press release contains certain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve substantial risks and uncertainties. A number of important factors could cause the Company's actual results, performance or achievements for fiscal 1999 and beyond to differ materially from those expressed in such forward-looking statements. These factors include, without limitation, commercial success of the Company's repertoire, its leveraged capital structures, ongoing and current needs for additional working capital, charges and costs related to acquisitions, permanent acquisition financing needs, relationships with artists and producers, attraction and retention of key personnel, general economic and business conditions and enhanced competition and new competitors in the recorded music industry and other factors described in the Company's filings with the Securities and Exchange Commission.