QRS Music Technologies, Inc. Acquires Gulbransen Digital Hymnal And The Gulbransen Name

Business Wire, Jan 8, 2003

Business Editors

SAN DIEGO, Calif.--(BUSINESS WIRE)--Jan. 8, 2003

QRS Music Technologies, Inc. (OTCBB:QRSM) announced today that it has acquired from Gulbransen, Inc., San Diego, California, their Digital Hymnal system and the Gulbransen name (www.gulbransen.com).

Gulbransen has a long history in the music industry of over 100 years. They started manufacturing player pianos and have migrated to high-tech equipment and software for the music industry. Terms of the transaction were not disclosed.

Tom A. Dolan, President, said: "The Gulbransen name in the music industry is a well-respected name and we are excited about adding it to our family of name brands. The Digital Hymnal will help us accelerate our penetration into the religious market. We have identified the religious market's need for automation and we are aggressively building a product line for that market."

The Digital Hymnal has thousands of titles in the Master Index. The user simply enters the numeric code and the system plays it immediately. The Digital Hymnal includes both software and hardware.

In June, QRSM announced the introduction of the "Psalmist," an automatic player system designed for the Hammond B3 organ, one of the most popular organs in the Hammond line. Over 300 hymns, anthems and spirituals were specifically recorded and are available for the "Psalmist." The "Psalmist," based on the QRS Pianomation(R) system, can be operated remotely with the use of a hand-held remote control.

About Pianomation(R)

The QRS Pianomation(R) system can turn any piano into a reproducing player piano. A hardware and software process can store and transport Musical Instrument Digital Interface ("MIDI") information as an analog signal. This process gives QRS the ability to store, and wirelessly transmit, MIDI performance data in an analog format from a controller (CD, video, cassette, DVD, DAT or Minidisc) to the receiver on the piano. This creates numerous possibilities. For example, most off-the-shelf audio equipment has a left and right channel available for use. State-of-the-art technology permits QRS to store the digital signal in an analog format on the left channel of the software that operates those players. This leaves the right channel available for live prerecorded audio music, even vocal recordings. Pianomation(R) blends them together in perfect harmony and perfect synchronization. The Pianomation(R) MIDI System is the first product of its kind to "marry" analog and digital technology.

QRS Music Technologies' World Wide Web site is www.QRSMusic.com. Sample audio selections are available at the Web Site. QRS Music Technologies, Inc.'s stock is traded Over-The-Counter on the OTCBB:QRSM.

Forward-Looking Statements

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statements containing words such as "believes," "should," "anticipates," "plans," or "expects," as well as other statements, are forward-looking, and those statements involve risks and uncertainties outside of the control of QRS and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Attention is directed to cautionary statements in our filings on Form 10K-SB for the fiscal year ended June 30, 2002, and our other filings with the Securities and Exchange Commission. All those filings are available on the Web site of the Securities and Exchange Commission at www.sec.gov.