The Singing Machine Company and Universal Music Enterprises Extend Motown Merchandise License Agreement

Business Wire, Jan 11, 2005

COCONUT CREEK, Fla. -- The Singing Machine Company (AMEX:SMD) announced today that it has entered into an extension through December 2006 of its domestic merchandise license agreement with Universal Music Enterprises and Motown Record Company, divisions of Universal Music Group, to support and expand its line of Motown-branded karaoke machines and music software.

"As a result of our partnership with Universal, in 2003 The Singing Machine was the first to introduce original artist music to the karaoke industry. Featuring hit songs by major R&B artists such as Smokey Robinson & the Miracles, Marvin Gaye, and Diana Ross & the Supremes, sales of these innovative and unique CD+G's (CD+graphics) have exceeded our expectations. The Singing Machine is proud to team with one of the world's top entertainment brands to bring exciting, innovative products to the growing karaoke market," said Y.P. Chan, Interim CEO of The Singing Machine.

About The Singing Machine

Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine(TM), Motown(TM) and other brand names. The first to provide karaoke systems for home entertainment in the United States, Singing Machine sells its products in North America, Europe and Asia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2004. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the risks that our vendors in China may not ship our products on the scheduled basis and that we will have sufficient cash flow to finance our working capital needs in the second and third quarter of this fiscal year. In addition, you should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.