MusicNet Announces Major Partnership With HMV to Support UK Retailer's New Digital Music Downloading Service

MusicNet Announces Major Partnership With HMV to Support UK Retailer's New Digital Music Downloading Service

NEW YORK, April 11 /PRNewswire/ -- MusicNet, the world's leading digital music service provider, today announced that it has entered into a long-term partnership with HMV, the UK's leading music, dvd and games specialist, in support of its new digital downloading service.

The market-leading retailer operates approximately 200 stores in key shopping locations, equating to well over 1 million sq. ft. of trading space, as well as a successful online store at www.hmv.co.uk.

Scheduled to launch during the second half of 2005, HMV's new digital service will be exclusively enabled by MusicNet, who is providing all of the back-end technology, software, support and content drawn from the largest digital music library available today.

HMV announced in December of 2004 that it entered into a strategic partnership with Microsoft Corporation to develop a customized Jukebox, enabling HMV's digital customers to "find, buy, enjoy and manage their music online all in one place."

The music content from HMV that will be provided by MusicNet will be compatible with the Windows Media Audio standard and more than 75 portable players that are currently in the market. A range of these players will be sold in HMV UK stores. In addition, the software and hardware required by consumers to enjoy digital downloads from HMV will be distributed via HMV UK's network of 200 stores and online at www.hmv.co.uk. HMV expects to support the new service with an investment of #10 million, including capital investment and launch marketing.

"We are thrilled to be working with HMV to deliver a customized digital music service that will strengthen their position as the UK's leading music retailer," said Mark Mooradian, Senior Director of Strategic Planning for MusicNet. "Our partnership with HMV represents another significant milestone in MusicNet's expansion into the European marketplace."

"We are proud to be associated with such a highly regarded and trusted consumer brand as HMV, and we will continue to explore new strategic partnerships that will expand our presence in Europe and capitalize on its increasing demand for premier digital music services," added Mooradian.

Stuart Rowe, HMV Europe E-Commerce Director, further commented, "I am delighted that a key component of our new digital download service is now very firmly in place and that when the service launches later this year, HMV customers will gain access to a massive library of content. Our aim at launch is to offer as wide and an eclectic range of content as is available anywhere online."

About MusicNet

MusicNet is the world's leading digital music service provider. The top U.S. and global consumer brands private label MusicNet's comprehensive suite of digital music services. MusicNet enables its partners to offer their customers a fully customized experience, including the ability to buy music downloads and subscriptions, choose from the industry's largest catalog of licensed music, explore engaging editorial programming and enjoy an easy-to-use interface. MusicNet is headquartered in New York.

About HMV

HMV is the UK's leading music, DVD and games specialist, operating over 200 stores in key shopping locations and online at www.hmv.co.uk. The retailer's first store was opened in London's Oxford Street in July 1921 by the celebrated British composer, Sir Edward Elgar. Since that time, the chain has become symbolized throughout the world by its iconic 'His Master's Voice' dog and trumpet trademark.

HMV is part of HMV Group plc, which operates nearly 400 music and home entertainment stores, trading across the UK and Ireland, Canada, Australia, Japan, Hong Kong and Singapore. The Group plc also runs the Waterstone's book chain in the UK and Ireland, giving it a combined total of around 600 stores around the world equating to more than 3.3m square feet of retail floor space. Since May 2002 HMV Group plc has been listed on the London Stock Exchange. It was originally formed in March 1998 as a result of the acquisitions of HMV and the Dillons books chain from EMI Group plc and Waterstone's from WH Smith plc.

Source: MusicNet

CONTACT: Alan Lewis of MusicNet, Director of Corporate Communications, +1 212/704-2056, or alewis@musicnet.com; or Gennaro Castaldo, HMV Head of Press & PR (UK & Ireland), +44 (0) 20 74322033, or gennaro.castaldo@hmv.co.uk, or Stuart Rowe, HMV Europe E-Commerce Director, or +44 (0) 207 4322000, or tuart.rowe@hmv.co.uk, both of HMV

Web site: http://www.musicnet.com/

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