Audible, Inc. Announces Positive Free Cash Flow in Q4 2003 on Strong Consumer Content Revenue Growth; Company Also Announces Conversion of All Preferred Stock to Common Stock

Business Wire, Feb 10, 2004

MobilePlanet, and Tweeter - including the sale of twelve-month

AudibleListener membership to one of every five iPod

purchasers at J&R during December.

-- AudibleReady functionality and compatibility extended to

digital audio device manufacturers using PortalPlayer's new

Personal Media Player Platform, helping establish Audible as

an accepted industry standard.

-- The release of the AudiblePlayer 4.0 upgrade for PocketPCs.

-- A redesigned Audible.com gift center, generating 50% rise in

gift sales during Q4 2002.

-- Content distribution partnership initiatives with Penguin,

HarperCollins, National Lampoon, Madonna, Hyperion, Soundview

Executive Summaries, Zondervan, Oasis, Listening Library, and

National Lampoon.

-- The launch of initiatives with leading Korean online

bookseller Yes 24 and with Die Zeit, Verlagsgruppe Georg Von

Holtzbrinck's leading weekly newspaper.

-- Feature coverage and positive reviews of the Audible service

in The New York Times, International Herald Tribune, Denver

Post, The Guardian (UK), Men's Journal, Self Magazine, Latina

Magazine, Time Out New York, Entertainment Weekly, and many

other publications.

Senior management will host an investor teleconference at 5:00 p.m. EST on Tuesday, February 10, to discuss these results as well as related financial and operational developments. Details for the teleconference and webcast are provided below.

A live webcast of the financial results conference call is available on Tuesday, February 10th at 5:00 p.m. EST (2:00 p.m. PST). Please visit www.audible.com/ir for online access to the call. To participate in the call the dial-in number is (800) 218-0204. The replay of the call will be available by 7:00 p.m. EST on Tuesday, February 10th at (800) 405-2236, passcode 567740#.

*Use of Non-GAAP Measures

Management believes that free cash flow is a useful measure of liquidity because it includes cash provided by operating activities as well as the impact of cash used for investment in property and equipment. However, this non-GAAP measure should be considered in addition to, not as a substitute for, or superior to net cash provided (used) by operating activities, or other financial measures prepared in accordance with GAAP. A reconciliation to the GAAP equivalents of this non-GAAP measure is contained in tabular form on the attached unaudited financial statements.

To enhance the clarity of Audible's operating expense presentation, certain operating expenses for historical periods in the attached Statements of Operations have been reclassified to conform with newly reclassified current presentation.

About Audible.com:

Audible.com, recently named the best consumer Web service by CNet.com (April 2003), and one of the "Best of Today's Web" by PC World (August 2002) features daily audio editions of The Wall Street Journal and The New York Times -- available on a subscription basis in time for the morning drive to work each day--as well as Forbes, Harvard Business Review, Scientific American and Fast Company. The site offers a powerful collection of audiobook best sellers and classics by authors such as Tom Clancy, Stephen King, John Grisham, Mary Higgins Clark, James Patterson, the Dalai Lama, David McCullough, Stephen Hawking, William Shakespeare, Emily Dickinson and Jane Austen. There are also speeches, lectures, and on-demand radio programs including Marketplace, All Things Considered, Car Talk, Fresh Air and This American Life, and original shows such as RobinWilliams@audible.com. All of the programs at audible.com are available for computer-based playback, burning to audio CD, and on-the-go listening using numerous AudibleReady(R) portable digital audio players offered by leading consumer electronics and computer manufacturers.