Thomson multimedia and MP3.com Launch mp3PRO On MP3.com Web Site; Internet's Premiere Music Provider To Showcase mp3PRO Codec With All-New Music And Consumer Promotions

Business Wire, Oct 3, 2001

Business & High-Tech Editors

PARIS & SAN DIEGO--(BUSINESS WIRE)--Oct. 3, 2001

Thomson Multimedia (Paris Euroclear:18453)(NYSE:TMS), the exclusive licensing representative of mp3 patents under the patent portfolio of Fraunhofer IIS-A and Thomson Multimedia and MP3.com, the Internet's No. 1 music destination, have joined forces to launch the high fidelity mp3PRO Codec on the globally-renowned web site.

MP3.com premiered mp3PRO on Monday, October 1, 2001 with a special co-branded online web site section within the MP3.com web site devoted to the new codec. Uniting the unparalleled online distribution reach of the web's No. 1 music site and the high fidelity advancement of the world's No. 1 codec, the Thomson-MP3.com online destination features thousands of mp3PRO music files, as well as the availability of an mp3PRO Plug-in for the Winamp player.

Underscoring its commitment to the new codec, MP3.com will provide substantial promotional support for its launch of mp3PRO, including a text link on the MP3.com home page and banner and banner placements designed to drive traffic into the co-branded mp3PRO section of the MP3.com web site. Within the co-branded area of the MP3.com Web site will be music categories ranging from classical to rock, with each genre offering scores of individual selections.

Representing the next generation of the world's most popular codec, mp3PRO compresses twice as much information in the same amount of memory as standard mp3 files while providing a higher fidelity mode than standard mp3 through its improved compression techniques and better high-end frequency response. In addition to its combination of more compact mp3 files and superior audio quality, mp3PRO offers backwards and forwards compatibility, enabling original mp3 files to play normally on the new mp3PRO player and mp3PRO files to play on original mp3 systems. The best audio performance is achieved when consumers both encode and decode music files in mp3PRO.

"We are delighted to team with Thomson multimedia in bringing the next generation of mp3 to music enthusiasts worldwide," said Terry Ash, senior vice president and national sales manager for MP3.com. "The combination of improved compression rates and near CD-quality sound make mp3PRO a wonderful offering for the world's music fans."

"The largest single collection of digital music on the Internet, MP3.com is an outstanding ally in our successful campaign to further mp3PRO in the consumer marketplace. Through this significant marketing alliance, mp3PRO will reach the vast numbers of music fans worldwide who have come to rely on MP3.com as a top music destination," said Henri Linde, who supervises Thomson multimedia's mp3PRO licensing program.

Thomson multimedia is the exclusive licensing representative of mp3 patents and software of Coding Technologies, Fraunhofer IIS-A, and Thomson Multimedia. Developed by Coding Technologies, mp3PRO utilizes both Coding Technologies' codec enhancement technology and the pioneering work in the field of perceptual audio coding covered under the basic mp3 patents owned by Thomson and Fraunhofer. A recently introduced mp3PRO demo is available for download from www.thomson-multimedia.com, www.rca.com and www.codingtechnologies.com.

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, regarding prospects for the future that involve a number of risks and uncertainties. Among the factors that could cause actual income to differ materially from those expected are the following: business conditions and general economic conditions; competitive factors such as pricing and marketing efforts of rival companies; timing of product introductions; ability of contract manufacturers to meet product price objectives and delivery schedules; legislative, regulatory, and industry initiatives that may affect planned or actual product features and marketing methods; and the pace and success of product research and development. For more information on the potential factors that could affect the company's financial income, please review the relevant SEC filings.

About MP3.com

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MP3.com, Inc. has created a unique and robust technology infrastructure designed to facilitate the storage, management, promotion and delivery of digital music. As the Internet's premier Music Service Provider (MSP), the company is dedicated to providing consumers with access to music when they want it, where they want it, using any web-enabled device. The company's web site hosts what MP3.com believes is the largest collection of digital music available on the Internet, with more than 1 million songs and audio files posted from over 168,000 digital artists and record labels. Dedicated to growing the digital music space, the company's products and services include on-demand Subscription Music Channels, an innovative Business Music Services program, a Syndicated Radio program and others. Additionally, through the company's MSP technology initiative and its music InterOperating System, MP3.com is partnering with a variety of forward-looking businesses to expand its digital music strategy. MP3.com is a trademark of MP3.com, Inc. Other trademarks or service marks referenced herein are the property of their respective owners. The company is a wholly-owned subsidiary of Vivendi Universal (NYSE:V) and is based in San Diego, California. For more information on MP3.com, visit www.mp3.com.