KGS Announces Filing of Shareholders Securities Fraud Class Action Against Loudeye Corp. - (Nasdaq: LOUD)

Market Wire, October, 2006

Kahn Gauthier Swick, LLC ("KGS") has filed a class action lawsuit in the United States District Court for the Western District of Washington, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of Loudeye Corp. ("Loudeye" or the "Company'') (NASDAQ: LOUD) between May 19, 2003 and November 9, 2005 (the "Class Period").

Contrary to the representations made by the Company during the Class Period, Loudeye was operating well below guidance, Loudeye was not successfully integrating its acquisitions, and the Company's recent restructuring was failing. Also, as investors ultimately learned, at all relevant times, Loudeye suffered from severe financial and operational control deficiencies. The shocking revelation of the truth about the Company had a material and adverse impact on the price of Loudeye stock and following each of these disclosures shares of the Company declined precipitously -- falling from a Class Period high of almost $30 per share in late 2004, to less than $2.00 per share by the time that defendants announced that the remaining assets of the Company would be sold to Nokia.

Loudeye and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Particularly, the complaint alleges that Loudeye: (1) deceived the investing public regarding Loudeye's business, operations, management and the intrinsic value of Loudeye common stock; (2) raised almost $60 million through the sale of stock and warrants to private equity investors while materially misrepresenting its business prospects; (3) used almost $25 million of its artificially inflated shares to purchase the once valuable asserts of companies such as Overpeer Inc. and OD2 during the Class Period; and (4) caused plaintiffs and other Class members to purchase Loudeye common stock at artificially inflated prices. Moreover, investors also charge that Loudeye insiders have negotiated the merger with Nokia mainly for the purpose of insulating themselves from liability for their prior illicit and improper conduct.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or 504-648-1850, or by email at lewis.kahn@kglg.com .

Contact: Lewis Kahn KGS 1-866-467-1400, ext. 100 504-648-1850 email: lewis.kahn@kglg.com