QRS Music Technologies, Inc. Letter to Shareholders

Business Wire, March 18, 2003

Business Editors

NAPLES, Fla.--(BUSINESS WIRE)--March 18, 2003

The following letter is from Tom Dolan, President and CEO of QRS Music Technologies, Inc., to shareholders:

Dear Shareholder:

The past six months have been extremely busy as we are pushing ahead on numerous fronts. Recently, we reported record results for the three months ended December 31, 2002. Sales were $5,088,333 with net income of $683,429 (available to shareholders), or $.07 per share (fully diluted). For the six months ended December 31, 2002, sales increased 27 percent and net income increased 54 percent. I believe that we are making good progress in difficult economic times.

In January, we had a large display area at the National Association of Music Merchandisers ("NAMM") annual convention in Anaheim, California. During the convention we issued six very important press releases. To recap, they were: First, we announced our new "Sync-Along" technology that permits popular artists CDs and DVDs to play on our Pianomation(R) players; second, we upgraded our Serenade and Chili units to play the new "Sync-Along" technology; third, we signed a licensing agreement with Roland Corporation to permit their digital pianos play our CDs; fourth, we introduced the QRS Jukebox Media Player for personal computers; fifth, we announced a new five-foot French Provincial Grand; and sixth, we unveiled six new unique items for our growing supply catalog. All these announcements were significant advancements in our product offerings.

Just prior to the NAMM show, we announced the acquisition of the Gulbransen Digital Hymnal and the Gulbransen name. Also, prior to NAMM we announced an exclusive two-year Pianomation(R) agreement with Young Chang. These two business associations are important to our future growth.

Our product line is continually being updated to adapt to the current state-of-the-art technology. Words are really not adequate to convey the amazement customers have when they fully grasp the scope and sophistication of the technology. For example, a large flat screen TV is showing Billy Joel and Ray Charles playing the piano and singing the "Baby Grand" while your piano is playing in exact unison with his fingers. It is a little surreal.

Our new 100-page Pianomation(R) Music Library catalog includes our new "Sync-Along" collection, the QRS Jukebox software, the Virtuoso Piano and Violin collection, our new DVD Sing-Along Series, a collection of our most popular songs for regular CD players, and much more. If you have not visited our Web site (www.QRSMusic.com) recently, please log on and see what is new. Our online ordering continues to see increased usage and revenues.

Our increased focus on marketing and sales seems to be providing us confirmation that the effort is worthwhile. Our profitability in the past several years has strengthened our balance sheet and our cash position.

I welcome you to visit our showrooms in either Las Vegas, Nevada, or Naples, Florida. I believe you will be truly delighted to see our new and unique products. Also, if you would like to receive our press releases at your e-mail address, please e-mail our Investor Relations person at: cecampbel@aol.com to have your name included.

We appreciate your continued interest and support.

Sincerely,

Tom Dolan

President/CEO

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.