Valley Media Names Garrett President

Business Wire, August 16, 2001

Business Editors

WOODLAND, Calif.--(BUSINESS WIRE)--Aug. 16, 2001

Valley Media, Inc. (Nasdaq:VMIX), a recognized leader in the full-line distribution of music and video entertainment products, today announced that the Board of Directors has appointed Mr. Lewis Garrett as President. Additionally, the Board promoted Mr. John Kordic to Executive Vice President of Operations.

Mr. Garrett, a highly respected professional in the retail and entertainment industries, came to Valley Media, Inc. from Camelot Music in June of 2000 to take on the position of Senior VP of Marketing and Purchasing. Mr. Garrett has served as a Chairman of NARM's Retail Advisory Committee and been a member Of Country Music Association's Board of Directors. In addition to his new responsibility as President, Mr. Garrett will also continue to maintain oversight of the Purchasing and Marketing Departments.

Mr. John Kordic has served Valley Media, Inc. operations since 1993. He has led the operations team to become the most highly rated one-stop in the industry with the highest operational fill rate and distribution efficiencies in the nation.

"I have complete confidence that Lew and John will provide the leadership necessary to bring significant value to our management team in their new roles," said Peter Berger, CEO. "Their insights, industry knowledge and abilities are key to returning Valley Media to profitability."

About Valley Media, Inc.

Valley Media, Inc. is a distributor of music, video and DVD product, offering full-line distribution, independent distribution and new media fulfillment services for e-commerce, in addition to publications and proprietary database products. Valley Media operates facilities in seven states with primary distribution facilities in Louisville, KY and Woodland, CA where its corporate headquarters are located.

This press release contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations for the Company's future financial performance, and hopes for the future of its business. The company is subject to certain risk factors that may cause actual results to differ materially from anticipated results, including but not limited to, the following: our ability to achieve or sustain profitability; general economic and business conditions; the continued financial difficulties of our customers; the loss of one or more of our largest customers; and our ability to obtain sufficient financing for future operations. For additional information about risk factors, please see the reports filed by the company with the SEC, including our Form 10-K for the fiscal year ended March 31, 2001. The statements in this press release are made as of today, based on information currently known to management, and the company disclaims any duty to update such statements.