GarageBand.com Secures $2.5 Million Investment Led by Khosla Ventures, Develops `iLike' Service

Business Wire, July 26, 2006

SAN FRANCISCO, Calif. -- GarageBand.com, the leading independent music community, announced today it has secured its first round of institutional investment, a $2.5 million dollar equity financing from an all-star roster of strategic investors including Vinod Khosla and Bob Pittman. The company is preparing to launch "iLike," a new social music discovery service targeted at the iPod and MySpace generation, and is currently soliciting trial users at www.iLike.com.

Khosla Ventures and partner David Weiden led the round, with additional new investors including: Bob Pittman, co-founder of MTV and former head of AOL; Herbert Allen III of Allen & Company; and other individuals from the music, internet, and media industries. Vinod Khosla and Bob Pittman will join the company's Advisory Board alongside such luminaries as Talking Head Jerry Harrison, legendary producer Sir George Martin,and David Goldberg, head of Yahoo! Music.

"We love to back great entrepreneurs," said Vinod Khosla, founder of Khosla Ventures, "and we believe this is a great team to redefine how consumers discover music." Mr. Khosla, co-founder of Sun Microsystems and former general partner at Kleiner Perkins, has previously backed such successes as Juniper Networks, Nexgen, Cerent, Excite, Netscape, AOL, Amazon, and Google.

"We couldn't have dreamt of a better roster of investors," said Ali Partovi, CEO of GarageBand.com. "Vinod Khosla and Bob Pittman are inspirational figures in our industry. Our new investors bring terrific experience to the table and I look forward to working with and learning from each of them."

The new iLike service will expand the company's existing services by including mainstream artists, incorporating links among friends, and offering tools targeted at the iPod and MySpace generation. These new services, to be offered at www.iLike.com, will include a companion app for iTunes that allows consumers to organize their digital music libraries and discover new artists based on their listening habits. iLike will help consumers discover music based on what they and their friends like.

About iLike and GarageBand.com. Since 1999, GarageBand.com has allowed ordinary listeners to pick the best emerging music, resulting in commercial success for deserving artists worldwide. Top-rated songs from the site are promoted by almost 1,000 radio partners including Clear Channel's "NEW! Discover Music" program. Dozens of artists have been signed after climbing the GarageBand charts, including double-platinum Drowning Pool and recent Billboard chart-topper 10 Years. The company also operates Gcast, a service that lets anybody create and share their own podcast for free. The company's vision is to redefine how music is discovered: by the people, for the people.

About Khosla Ventures. Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of the Internet to new markets such as mobile and supports breakthrough scientific work such as bio refineries. The partners have been involved in founding or growing billion dollar businesses such as Sun Microsystems, Juniper Networks and AOL and pioneering scientific work such as the first complete sequencing of a plant genome. Vinod Khosla founded the firm in 2004 and was joined by general partners David Weiden and Samir Kaul, as well as chief scientific officer Doug Cameron in 2006. The firm's capital comes entirely from its own partners and a portion of all profits are donated to charitable causes, with an emphasis on micro-finance and affordable housing. Khosla Ventures is based in Menlo Park, California.