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Groundbreaking Royalty Program Could Distribute Millions of Dollars To Online Artists

``The Payback for Playback program serves as the cornerstone of our revolutionary royalty tracking technology,'' commented Michael Robertson, chairman and chief executive officer of MP3.com (www.mp3.com). ``We are dedicated to growing the digital music space by creating a revenue-generating online infrastructure that will drive the new music economy. Projecting the band's compensation in May to continue over the course of a year, a digital artist like 303Infinity could generate approximately $275,000 profit annually. That's an incredible figure that validates the commercial viability of an advertising-based revenue model for music.''

The top earning Payback for Playback artist in the month of May was 303Infinity. Mikel Fair, the founder of 303Infinity (www.mp3.com/303Infinity), earned $23,786.81 through the program. Fair has maximized his earning potential using MP3.com, its extensive promotional tools and the Payback for Playback program.

``Payback for Playback empowered me to reinvest in my music, which is the greatest dream an artist can ask for,'' Fair commented. ``I've held the number one spot with two different songs in my MP3.com career, made over $40,000 in royalties, and I've sold CDs in every state in the United States and all over the world. I have a complete home studio, a monthly advertising budget, a business plan, and thanks to MP3.com, 303Infinity is now my full-time job.''

Employing an advertising-based revenue model similar to network television, the Payback for Playback program utilizes a portion of advertising dollars raised on MP3.com to pay content owners for their music. The program is designed to compensate the more than 74,000 digital artists who post music on MP3.com, based on the popularity of their music. In the month of May, the top ten Payback for Playback earners at MP3.com combined to receive over $135,000. Encompassing a wide range of styles, the May top ten includes artists from Electronic, Easy Listening, Comedy, Hip Hop and Latin genres.

MP3.com launched the Payback for Playback promotion in November 1999. To join the MP3.com artist community and become eligible for Payback for Playback, an act must make at least one song, in its entirety, available on MP3.com for free streaming or downloading. The site does not charge any fees to artists for membership, and currently more than 74,000 artists have more than 469,000 songs available through the site. Musicians interested in becoming eligible for the Payback for Playback program can register to post music on MP3.com at www.mp3.com/newartist.

To receive MP3.com press releases via e-mail, register at: pr.mp3.com.

About MP3.com

MP3.com is pioneering a revolutionary approach to the promotion and distribution of music. MP3.com uses the Internet and file formats that make music files smaller to enable a growing number of artists to distribute and promote their music worldwide and to enable consumers to conveniently access this expanding music catalog. MP3.com's site contains over 469,000 songs and audio files from more than 74,000 artists. MP3.com believes this represents one of the largest collections of digital music to be found on the Internet. Consumers can search for, listen to and download music free of charge. In addition, MP3.com is recognized as the premier online Music Service Provider (MSP) which allows users to access, manage, and listen to their personal music collection anytime and anywhere in the world, using any web-enabled device or application. MP3.com shares are traded on the Nasdaq National Market under the ticker symbol MPPP. The company is based in San Diego, California. For more information on MP3.com, visit www.mp3.com.

Statements in this press release that are not strictly historical are forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include references to activities expected to occur in connection with the Payback for Playback promotion. These statements involve a high degree of risk and uncertainty, are only predictions, and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include risks related to: MP3.com's litigation proceedings, including without limitation the inability to reach settlement with all parties to such litigation; risks associated with the implementation and possible continuation of the Payback for Playback promotion; MP3.com's new and uncertain business model; acceptance of MP3.com's products and services; MP3.com's limited operating history, and MP3.com's rapid growth, as well as other risks detailed from time-to-time in MP3.com's reports to the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 31, 1999.

For more information, please contact: Greg Wilfahrt, Director of Public Relations of MP3.com, 858-623-7280, pr@mp3.com.

SOURCE: MP3.com, Inc.