Muzak Reaches Extension Agreement with Lenders

Muzak Reaches Extension Agreement with Lenders

Operations Remain Strong

FORT MILL, S.C., Jan. 19 /PRNewswire/ -- Muzak Holdings LLC and its affiliates (collectively, the "Company") announced today that it has successfully reached an agreement with its secured lenders to extend the maturity date under the Company's $105 million Credit Agreement, dated as of April 15, 2005, for a period of 22 days through and including February 10, 2009. The Credit Agreement was otherwise set to expire on January 19, 2009.

Stephen P. Villa, Chief Executive Officer of Muzak, said, "We are pleased to have reached an agreement with our lenders that will allow us to continue working cooperatively to address the Company's current debt maturities. As always, we are committed to providing high quality music and messaging products, innovative technologies and superior client service. We appreciate the continued dedication of our employees, the loyalty of our clients and the support of all of our other stakeholders as we position Muzak for long-term success."

As previously reported, Muzak has hired financial advisor Moelis & Company and the law firm of Kirkland & Ellis LLP to engage in discussions with the Company's secured and unsecured stakeholders regarding a financial restructuring of the Company's debt obligations. Muzak remains enthused by the cooperation of its secured lenders, and the Company is committed to furthering discussions with all of its major creditor constituencies to restructure the Company's indebtedness. The Company is confident that it has sufficient cash on hand, in addition to cash generated from ongoing operations, to support the business.

About Muzak

Muzak creates sensory experiences that reach more than 100 million people daily. Some of the largest brands in business trust Muzak to enhance their brand image. Muzak creates an endless variety of music programming from a catalog of over 2.6 million songs and produces targeted custom in-store and on-hold messaging. Through its national service and support network, Muzak designs and installs professional sound systems, digital signage, drive-thru systems, commercial television and more. For more information, visit www.muzak.com.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as "expects", "should", "may", "believes", "anticipates", "will", and other future tense and forward-looking terminology.

Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties including those contained in the risk factor and safe harbor disclosures found in our most recent financial reports and releases available at http://info.muzak.com/investor/. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

   MEDIA CONTACTS:   Meaghan Repko or Nicholas Lamplough   Joele Frank, Wilkinson Brimmer Katcher   (212) 355-4449  

First Call Analyst:
FCMN Contact:

Source: Muzak Holdings LLC

CONTACT: Meaghan Repko or Nicholas Lamplough, both of Joele Frank,
Wilkinson Brimmer Katcher, for Muzak, +1-212-355-4449

Web Site: http://www.muzak.com/

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Profile: International Entertainment