Sanctuary Records Group Licenses Extensive Catalog to FullAudio Digital Music Subscription Service; Sanctuary deal allows consumers to burn CDs, download and stream tracks

Business Wire, July 9, 2002

Business Editors

FullAudio Corp. today announced a worldwide licensing agreement with Sanctuary Records Group, a division of Sanctuary Group plc, to make Sanctuary's large and diverse digital music catalog available through FullAudio's digital media subscription service. The agreement will enable subscribers to download, burn to CD or stream tracks from their favorite Sanctuary artists and will immediately expand the range of music available to FullAudio subscribers by adding thousands of new tracks in several genres, such as metal, reggae, rock and punk music.

FullAudio's licensing agreement includes music from Sanctuary Records Group and its affiliated labels: Sanctuary Records, CMC International, Metal-Is, Castle Music, Trojan Records, Rough Trade Records and Noise Records. Sanctuary Records Group's digital catalog includes a diverse mix of artists, such as Bad Company, Iron Maiden, Megadeth, Bob Marley, Lynyrd Skynyrd, Pet Shop Boys, Joey Ramone and The Kinks.

"Teaming with FullAudio builds upon our goal of giving fans the means to enjoy our artists' music in the digital arena," said Tom Lipsky, Sanctuary's President. "We are pleased to add our diverse and independently owned catalog to FullAudio's digital music service because we share the same vision of delivering high-quality music to our fans through the convenience of the Web."

In addition to Sanctuary, FullAudio has secured sound recording rights from Warner Music Group, EMI Recorded Music, Universal Music Group and BMG. FullAudio also has obtained publishing rights from Universal Music Publishing, EMI Music Publishing, BMG Music Publishing, Sony Music Publishing, and the Harry Fox Agency. Both sets of rights are required to appropriately compensate copyright holders, including performers and songwriters, represented in FullAudio's extensive catalog of digital music.

"By licensing music from Sanctuary, FullAudio is continuing to deliver a vast digital music catalog to its channel partners, and ultimately to music fans, who are turning to digital services to explore new music and enjoy the hits from their favorite artists," said Chris Gladwin, CEO of FullAudio. "We're pleased to give FullAudio subscribers a diverse mix of music that includes tracks from the top major and independent music labels, like Sanctuary."

FullAudio focuses on delivering on-demand, digital media services through channel partners, such as radio station operators, Internet service providers, music retailers and cable operators. These partners want to broaden their customer's digital media experience--in a way the positively impacts customer loyalty and branding initiatives-- by offering services, such as CD burning, digital sampling, radio, streaming and music download.

About Sanctuary Records

Sanctuary Records is part of The Sanctuary Group, one of the world's leading developers of intellectual property rights (IPR's) in the fields of music, television and entertainment and the owner of the world's largest independently owned catalogue of music and visual rights. With an ever-growing recorded music repertoire of over 100,000 tracks, Sanctuary has distribution in all of the world's major territories. Sanctuary is also a major international artist management company, representing artists from Guns `N' Roses and Iron Maiden to Adam F and Buddahead, as well as 30 of the world's top music producers. Through its visual rights licensing company and Europe's largest live agency, Sanctuary can offer a complete service to artists. Other important areas of business include a DVD and TV production division which sells to over 100 countries worldwide and a burgeoning music publishing arm.

About FullAudio Corporation

FullAudio Corporation provides a platform and infrastructure that enables our channel partners to deliver digital media services, such as digital sampling, streaming, and music downloads. The company's unique approach allows our partners to quickly expand their relationships with consumers by offering on-demand subscription services or short-term promotions. FullAudio's platform and infrastructure makes it easy for our channel partners to offer branded music services by incorporating the software and systems that cover every aspect of music content aggregation and delivery including: content acquisition and management; media storage and secure delivery; digital rights management; and a service infrastructure. FullAudio provides all of the back-office functionality, including billing, reporting and analysis, and usage analysis.

Founded in April 1999, FullAudio's advisors and investors include top-tier venture capital firms and music industry experts. For more on the company, please visit http://www.fullaudio.com.