Commitment to Expand the Digital Music Marketplace at Heart of Agreement between SNOCAP and SONY BMG MUSIC ENTERTAINMENT

Business Wire, March 3, 2005

SAN FRANCISCO & NEW YORK -- SNOCAP and SONY BMG MUSIC ENTERTAINMENT today announced that they have signed an agreement for SNOCAP to provide identification and copyright management technologies, as well as database services, that will facilitate new opportunities for the legitimate online distribution of repertoire contained within SONY BMG's catalog of recorded music.

"We're very happy to be working with SNOCAP as we develop an infrastructure that will enable us to further expand our presence in the digital arena, while at the same time protecting the rights of artists and copyright holders from digital piracy," commented Thomas Hesse, President, Global Digital Business, SONY BMG MUSIC ENTERTAINMENT. "SNOCAP's innovative solutions will help to curb copyright infringement, and will facilitate the creation of legitimate, authorized P2P services."

"With SONY BMG on board with the SNOCAP technology, the Internet will become a much richer resource for music fans everywhere. We're very pleased that they see the benefit of what we have to offer, and we look forward to working with them," said Shawn Fanning, Chief Strategy Officer for SNOCAP. "This is an important step toward the growth of a digital marketplace where consumers can discover, share and purchase music from massively deep, almost infinite catalogues."

With today's agreement, SNOCAP is now allied with the two largest label groups, which have a combined market share of approximately 60%. SONY BMG has already begun delivering and registering its content with SNOCAP. SNOCAP's copyright management interface enables label partners to set business rules for each track, on a global basis. Financial terms of the deal were not disclosed.

SNOCAP is the first end-to-end solution for online music distribution and copyright management, providing value to record labels, artists, online services and consumers through its music registry and technology platform. With SNOCAP, consumers will have expanded authorized options in the digital arena.

About SNOCAP

Founded in September 2002, SNOCAP, Inc., based in San Francisco, offers record labels, publishers, and artists an end-to-end solution for digital licensing and copyright management services. Through SNOCAP, operators of authorized peer-to-peer services and online retailers will have access to the largest possible catalog of authorized content that has historically been available only on unauthorized services. SNOCAP provides digital music technology and services to Universal Music Group and SONY BMG MUSIC ENTERTAINMENT. SNOCAP's easy-to-use service for registering digital content and managing online distribution will enable a more vibrant digital marketplace with better selection and a variety of compelling business models. SNOCAP's database will include current hits, new releases, live recordings, remixes, B-sides and out-of-print tracks culled from major labels, independent and unsigned artists. For more information, visit www.snocap.com.

About SONY BMG MUSIC ENTERTAINMENT

SONY BMG MUSIC ENTERTAINMENT is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. SONY BMG MUSIC ENTERTAINMENT is 50% owned by Bertelsmann A.G. and 50% owned by Sony Corporation of America.