MusicStore Jukebox Stores 200 Audio CDs in MP3 Format; Breakthrough Audio Device Incorporates CD Player, Hard Drive and Portable MP3 player — While Keeping Artists' Rights Intact

Business Wire, June 20, 2000

Business/Entertainment Editors & Multimedia Writers

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SAN DIEGO--(BUSINESS WIRE)--June 20, 2000

MP3 SUMMIT--DigMedia Inc., a digital music distribution company, today released the $499 MusicStore(TM), a consumer electronics device that incorporates a CD player, digital jukebox and a portable MP3 player/docking station that can record, store and manage up to 200 conventional audio CDs using a rights secure MP3 format.

With command of more than 2,400 songs, the MusicStore cannot only replace an entire CD collection, but is poised to redefine how music is managed and enjoyed.

Consumers don't need to be computer literate or MP3 savvy to use the MusicStore. As conventional audio CDs are played, MP3 audio is created automatically and stored to the unit's on board 6.4GB hard drive. The MusicStore connects to any hi fi system or powered speakers and is among the first digital music systems to recognize Digital Rights Management in order to protect the original content owners from piracy. When songs are transferred to the MusicStore's built-in portable SoulMate(TM) MP3 player, they are no longer available on the jukebox until the SoulMate is returned to its base. The transfer of songs to and from the MusicStore is also astoundingly fast -- each track transfers in about a half a second.

Available mid-July, the MusicStore can be transported as conveniently as a portable radio or CD player, giving consumers the ability to pre-select almost 5 days worth of audio material to enjoy at home, work or car. The MusicStore also features a built-in USB port to access tracks from a PC.

"Our mission is to extend the reach of digital music both online and off," said Pedro Vargas, a former 12-year business development veteran with Intel and current Chairman and CTO of DigMedia. "The MusicStore is the first in our line of non-PC, cellular, cable and wireless devices that we hope will broaden the market for digital music worldwide."

An end-to-end digital music distribution company, DigMedia also provides secure media streaming and hosting services to record labels and other music content providers. "Our hosting infrastructure and Digital Rights Management products are among the most robust e-commerce-based broadband solutions in the industry that can be dropped in to any Web portal looking to add revenues though music sales," added Vargas. DigMedia Inc. streaming services are provided by Intel Media Services, Digital Rights Management though InterTrust and back office connectivity via SAP. The company's other strategic technology alliance partners include Microsoft, AOL Tegic and RealNetworks.

About DigMedia Inc.

DigMedia Inc. is a music service provider and digital appliance manufacturer focused on the digital distribution of music and video. Recently spun off from Memory Corporation (EASDAQ: MEMY), DigMedia Inc. is based in San Diego with offices in England and Scotland. For more information about DigMedia Inc., visit the company's showcase Web site at http://www.dig-music.com.

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