Loudeye Chosen to Power Digital Music Service for French Supermarket Chain Magasins U

Loudeye Chosen to Power Digital Music Service for French Supermarket Chain Magasins U

LONDON, Aug. 31 /PRNewswire-FirstCall/ -- Loudeye Corp. (NASDAQ:LOUD), a worldwide leader in business-to-business digital media solutions, has announced the launch of a branded digital music store for the Magasins U French supermarket chain.

The service will initially be promoted in 50 Magasins U hyper and supermarkets through pre-paid cards available in-store. Customers also can purchase tracks online with their credit card and choose to stream and download from a large catalog of global and local artists. After the launch phase, Magasins U expects to roll the service out to its entire network of 800+ retail stores across France in the first part of 2006.

The prepaid cards in-store will vary in denominations from 5 euro upwards, with a range of extra incentives also included. Customers buying the 15 euro card will receive an extra 1 euro worth of credit free, while those purchasing the 30 euro card will receive an extra 3 euro and anyone buying the 50 euro voucher will receive an extra 10 euro of free credit.

Serge Papin, Magasins U chief executive officer, said: "Magasins U are known as LES NOUVEAUX COMMERCANTS ("New retailing"). By offering our clients all around France a digital music service, we illustrate our usual approach to both proximity and modernity. Ever increasing numbers of people are switching on to digital music and we're delighted that we are now in a position to offer our customers a dedicated Magasins U service. We have always ensured we offer our customers the very best service in all aspects of our business and in choosing Loudeye as our partner for this service, we're maintaining this position."

Ed Averdieck, general manager for Loudeye Europe, added: "Magasins U is one of the largest retail networks in France with an extensive customer reach and we're extremely happy to be able to offer this service. The French market is one of our longest standing areas outside of the UK and we're pleased that we are continuing to expand in this territory."

About Loudeye Corp.

Loudeye is a worldwide leader in business-to-business digital media solutions and the outsourcing provider of choice for companies looking to maximize the return on their digital media investment. Loudeye combines innovative products and services with the world's largest digital music archive, a broad catalog of licensed digital music and the industry's leading digital media infrastructure enabling partners to rapidly and cost effectively launch complete, customized digital media stores and services. For more information, visit www.loudeye.com.

Forward Looking Statements

This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this release are based on current estimates and actual results may differ materially due to risks, including the possibility of adverse changes in the market for distribution of digital audio and video that Loudeye serves; adverse or uncertain legal developments with respect to copyrights surrounding the creation and distribution of digital content; pricing pressures and other activities by competitors; the failure of Loudeye's hosting infrastructure; the complexity of Loudeye's services and delivery networks; any problems or failures in the structure, complexities or redundancies of Loudeye's network infrastructure; failures in third party telecommunication and network providers to provide required transmission capacity; lack of market acceptance for Loudeye's products and services; the possible delay in the adoption of digital media or related applications on the web in general; and other risks set forth in Loudeye's most recent Form 10-Q, Form 10-K and other SEC filings which are available through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. Loudeye assumes no obligation to update the forward-looking statements.

Source: Loudeye Corp.

CONTACT: Media/press (U.S.), Karen DeMarco of mPRm Public Relations, +1-323-933-3399, or kdemarco@mprm.com, for Loudeye; or Media/press (Europe), Chris Owen of Trimedia Communications UK, +44 (0)207 471 6851, or +44 (0)7787 122 800, or chris.owen@trimediauk.com, for Loudeye; or Investor relations, Michael Dougherty of Loudeye, +1-206-832-4000, or ir@loudeye.com

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

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