MusicNet Announces Partnership With MusicGremlin

MusicNet Announces Partnership With MusicGremlin

Leading Digital Music Service Provider Teams With Developer of Direct-To-Device Software and Music Services to Provide World's First 'Record Store in Your Pocket'

NEW YORK, June 7 /PRNewswire/ -- MusicNet, the world's leading business-to-business digital music service provider, today announced that it has entered into a partnership with MusicGremlin, Inc., the leading developer of direct-to-device music distribution technology and services. MusicGremlin licenses its technology to major consumer electronics companies, with the first-generation of devices planned to launch in the second half of 2005.

MusicNet will support and provide several technological and programming components for MusicGremlin's music store. In addition, MusicGremlin will benefit from MusicNet's library of more than 1.5 million tracks, the largest available music library in the industry today that includes licensed content from all of the major record labels and more than 25,000 independent labels. This relationship marks the first time that MusicNet is working with a partner that is focused on portable consumer devices.

MusicGremlin's technology transforms MP3-style players into a "record store in your pocket." With MusicGremlin-enabled devices, customers can discover, manage and purchase digital music directly from their players-wirelessly and without a personal computer. MusicGremlin's device-based music store will allow customers to get music either through a monthly subscription service, allowing them to receive unlimited downloads, or by purchasing "a la carte" downloads for permanent ownership. As part of the experience, device owners will be able to communicate with and even legally share music wirelessly with other users, creating a mobile community of music enthusiasts.

MusicGremlin delivers this customer experience through its proprietary technology, which combines device-based software with a custom-architected direct-to-device music store and content distribution system. The first generation of devices incorporating the company's technology will be portable digital audio players that add embedded WiFi to all the other features commonly found in existing players.

"We are pleased to expand our distribution network with such an innovative partner and play a role in MusicGremlin's vision for changing the way that consumers will be able to discover and experience digital music on the go," said Alan McGlade, CEO of MusicNet. "Supporting content distribution directly to portable consumer devices illustrates our ability to be a flexible and world-class digital music service provider."

"With the MusicNet partnership, an important component of the MusicGremlin store is now in place," said Jonathan Axelrod, MusicGremlin co-founder and co-president. Robert Khedouri, MusicGremlin's other co-founder and co-president, added, "As our hardware partners begin to roll-out MusicGremlin-enabled devices later in the year, we will provide consumers with an intuitive discovery experience and the most comprehensive digital music library available today."

About MusicNet

MusicNet is the world's leading business-to-business 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 more than 1.5 million tracks (the industry's largest catalog of licensed music), explore engaging editorial programming and enjoy an easy-to-use interface. Headquartered in New York, MusicNet is wholly-owned by Baker Capital, a New York-based private equity firm with $1.5 billion under management. For more information, please visit http://www.musicnet.com/.

About MusicGremlin, Inc.

Based in New York City, MusicGremlin, Inc. has created device-based software technology that connects to its proprietary digital music store, providing consumers with the next generation of benefits promised by digital music. MusicGremlin's powerful combination of device software and secure digital content distribution allows users to discover, purchase, manage, control and legally share their digital music collections directly from their digital audio players-wirelessly and without requiring a PC. MusicGremlin's patent-pending technology allows devices to access the MusicGremlin Music Store and download tracks directly to MusicGremlin-compatible consumer electronics devices using wireless high-speed networks. MusicGremlin's end-to-end system benefits content owners by providing a secure and exciting new distribution channel, and MusicGremlin's device technology benefits consumer electronics partners by providing next-generation functionality to their digital audio products. For more information, visit http://www.musicgremlin.com/.

Source: MusicNet

CONTACT: Alan Lewis, Director of Corporate Communications, +1-212-704-2056, alewis@musicnet.com of MusicNet; or Karen Novak, +1-212-431-0703, knovak@musicgremlin.com of MusicGremlin

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

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