MediaBay, Inc. Announces First Quarter 2000 Results; Sales Increase 25.7%; Results Exceed Analysts' Expectations

Business Wire, May 11, 2000

"This debt repayment served to strengthen our balance sheet and will reduce our interest expenses going forward," said Mr. Herrick.

"MediaBay was built through smart acquisitions that consolidated the audiobook club market, making the Company the world's largest and only club for audiobooks, and expanding the content library to include old-time radio programs and classic movie videos," said Mr. Norton Herrick, Chairman of MediaBay, Inc. "We view volatility in the financial markets as an opportunity to continue building MediaBay through alliances, joint ventures, mergers and acquisitions. While we frequently speak with other companies about potential transactions, there are no deals to be publicly announced at this time."

HIGHLIGHTS (occurring during and subsequent to the quarter):

Distribution Deals:

- On April 24, MediaBay announced an agreement with Dow Jones & Company, Inc.
(NYSE: DJ), publisher of The Wall Street Journal, for digital downloads of
breaking news. The new audio service will feature premium content from The Wall
Street Journal, and will be available on a subscription basis in streaming and
secure digital download audio formats for PC-based and mobile playback. The
audio digest will consist of three separate reports: The Wall Street Journal
Hourly Markets Report ("Market Report"), The Wall Street Journal Today Report
("WSJ Today") and The Wall Street Journal Markets and Final Analysis ("Markets
Final"). Users can access this service through the Company's MediaBay.com
portal located at www.MediaBay.com.

- On April 10, MediaBay announced that it partnered with Talk City (NASDAQ:
TCTY) to host a series of monthly online audio chats featuring celebrity
authors. The series is titled "Celebrity Bay" events and is available at
www.MediaBay.com, www.audiobookclub.com and www.talkcity.com.

- On March 29, MediaBay announced agreements with several leading audiobook
publishers to market and sell hundreds of audiobook titles as digital
downloads. The publishers include Naxos Audiobooks, Brilliance Audio, Hay
House, New World Library, Digital Data Transfer, Rivertree Productions, Voice
Arts and Word Music.

- On March 27, MediaBay, Inc. announced that several leading audiobook
publishers agreed to exclusively allow MediaBay to market and sell their
audiobooks and spoken word titles. The publishers include Agora Publications;
Funfit; Jim Dandy; Listen to Learn; and Motivational Resources.

- On February 14, MediaBay, Inc. announced a three-year digital download
distribution agreement with leading audiobook publisher Simon & Schuster Audio,
a division of Simon & Schuster, the publishing operation of Viacom Inc. (NYSE:
VIA, VIA.B). The agreement will enable MediaBay, Inc. to market and sell
hundreds of select audiobooks from the best-selling Simon & Schuster front and
backlist audiobook library.

- In late January, MediaBay acquired exclusive online content rights to
interviews by Ann Liguori, television's best known female sports interviewer.
The agreement with Ann Liguori Productions, Inc. includes developing, marketing
and promoting a section within the Company's MediaBay.com portal featuring
streaming and downloadable content and e-commerce services dedicated to Ms.
Liguori's work.