Live365 Tops 20,000 Mark for Streaming Radio Channels to Set New Industry Milestone; Live365 Touts Most Loyal Users on the Web

Business Wire, March 22, 2004

Entertainment Editors/Business Editors

FOSTER CITY, Calif.--(BUSINESS WIRE)--March 22, 2004

Live365, the largest Internet radio network, announced today that it has hit an industry milestone, surpassing 20,000 streaming radio channels, including broadcasts of music, talk and more. Offering the most diverse array of streaming radio channels from around the globe, Live365 provides an unparalleled choice of music and other streaming audio content, and a unprecedented "voice" for its tens of thousands of professional and independent broadcasters.

Live365's listeners demonstrate their loyalty by spending an average of 50 minutes per session with the active listeners tuning in an average of 32 hours per month. Listeners can choose from a free radio service offering 5,000 stations or a premium radio service that includes, for a nominal monthly fee, an additional 15,000 stations, many in CD-quality sound and nearly all without advertising.

"As our business continues its dramatic growth, we are deeply committed to giving broadcasters the freedom, voice, and reach not available on traditional airwaves," said Rags Gupta, COO Live365. "By providing a one-stop-shop for broadcasting, we enable anyone to share their musical tastes, viewpoints, and opinions by creating their own Internet radio station, and in an affordable manner. As a result, we have the world's most vibrant network of digital radio stations representing the collective creativity of thousands of individuals, businesses and organizations."

Live365 enjoys a diversified business model that includes pay-to-listen, pay-to-broadcast, and advertising and promotion revenue streams. This aggregates professional and independent broadcasters looking to broadcast their own digital radio station and offers service packages that include software, storage, bandwidth, royalty coverage and music, plus the opportunity to reach a global audience via Live365's distribution platforms including iTunes, RealPlayer, Windows Media Center and the Live365.com website. The Company is licensed via the DMCA and handles payment and administration of the necessary royalty fees to record labels, artists, ASCAP, BMI and SESAC.

In terms of Arbitron-rated Internet Radio Networks, Live365 is behind only AOL and Yahoo! in terms of Aggregated Tuning Hours, reaching millions of listeners per month from over 150 countries. Live365 offers a myriad of genres and the most diverse array of high-quality radio available today. Station genres include but are not limited to: Alternative, Americana, Asian, Bluegrass, Blues, Christian, Classical, Classic Rock, College, Comedy, Community, Country, Dance, Dub, Easy Listening, 14 sub genres of Electronica/Dance, Folk, Funk, Goth, Government, Hip-Hop, Holiday, Indie Rock, International, Irish, Jazz, Latin, Metal, Music to ... to, New Age, Oldies, Pop, Punk, R&B, Rap, Reality, Reggae, Religious, Rock, Smooth Jazz, Soundtracks, Spoken Word, Sports, Swing, Talk, Valentine, Various, Western, World, '50s, '60s, '70s, '80s, '90s, and more.

About Live365

Launched in July 1999, Live365 is a two-time winner of the Best Radio Website Award from the Web Marketing Association, a two-time winner of the People's Voice award for Best Music Site at the Webby Awards, and has received Best-of-Web designations from Forbes.com and the San Francisco Chronicle. The Company is a Board Member of the Digital Media Association (DiMA), the National Association of Broadcasters (NAB), the Association for Independent Music (AFIM), the Intercollegiate Broadcasting System (IBS), and Collegiate Broadcasters, Inc. (CBI). Live365 is based in Foster City, California.