MUSICMATCH Announces Music Subscription Strategy; MUSICMATCH Radio MX Will be Extended to Provide On-Demand Music Service

Business Wire, May 7, 2001

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--May 7, 2001

MUSICMATCH(R), Inc. today announced plans to provide an on-demand music service, based on its just-released MUSICMATCH Radio MX(TM) (announced separately today). With the introduction of Radio MX, the company now offers its millions of customers subscriptions to "near music-on-demand" at CD quality. MUSICMATCH will use this infrastructure to add true "on-demand" music selections to Radio MX as required licenses are obtained from labels and publishers. The company expects to launch its next generation on-demand music services this summer.

Built on the technology of the acclaimed MUSICMATCH Radio, the MUSICMATCH next generation on-demand music services will give subscribers access to an extensive collection of on-demand streaming and downloadable music. Music fans will have the ability to select favorite tracks as they hear them on their personalized radio stations and instantly add them into their music library along with their ripped or downloaded music. Customers who opt in to the MUSICMATCH personalization service will receive personalized on-demand music offerings to match their unique tastes in music.

"We believe MUSICMATCH Radio MX will be the world's first successful digital music subscription service," said Dennis Mudd, CEO of MUSICMATCH, Inc. "Four years ago, we invented the digital music jukebox, and we continue to provide innovative digital music services by listening to our millions of customers and giving them what they want. This foundation of consumer understanding and digital music technology positions MUSICMATCH to be the leader in selling digital music over the Net."

Building on Early Radio Success

After only five months on the market, MUSICMATCH Radio has become one of the most popular Internet radio services on the Web, with more than 2.8 million Aggregate Tuning Hours (ATH) and 750,000 total unique listeners in March 2001. This success has been driven by a unique combination of personalized radio and professional programming, as well as the almost unlimited choice of artist-based radio stations found in MUSICMATCH Radio.

Reaching Fans and Building Audiences

MUSICMATCH Radio and MUSICMATCH Radio MX are integrated into the popular MUSICMATCH Jukebox software program, which surpassed RealJukebox in March to become the word's most popular music jukebox software program. MUSICMATCH Jukebox was actively used by 4.6 percent of all U.S. households in the month of March according to Jupiter Media Metrix. The large community of MUSICMATCH music lovers is ideally suited to building the world's first successful digital music subscription services.

About MUSICMATCH, Inc.

MUSICMATCH, Inc., founded in 1997 and based in San Diego, is a recognized leader in developing personalized music software and services that let people find and listen to the music that best matches their unique tastes. The company invented the digital music jukebox in 1997; since then has registered more than 18 million users of its MUSICMATCH Jukebox software program. MUSICMATCH Jukebox is the world's most popular jukebox software program, used each month by more than four million people in the U.S. and more than nine million people worldwide. MUSICMATCH is a privately held company with significant investment from Intel Capital, Redpoint Ventures and Thomson Multimedia. For additional information on MUSICMATCH, visit http://www.musicmatch.com.

Note to Editors: MUSICMATCH is a registered trademark of MUSICMATCH, Inc.(TM) MUSICMATCH Jukebox is a trademark of MUSICMATCH, Inc. Other trademarks are the property of their respective owners.