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mp3 Co-Developer Thomson Integrates MusicMatch Jukebox into New mp3 Product Lineup

The additional investment from Thomson will enable MusicMatch to bolster product development and marketing efforts as well as add crucial headcount in the areas of marketing and software development. This is Thomson's second investment in MusicMatch, the first of which was announced in April 1999.

``Thomson's latest investment in MusicMatch is one example of the mutually beneficial alliance between our companies, which to date has resulted in industry-leading digital audio software and hardware innovations, and the increased proliferation and adoption of the mp3 audio format worldwide,'' said Dennis Mudd, president and CEO of MusicMatch, Inc. ``The additional integration of our industry-leading jukebox software into Thomson's upcoming digital audio product line will also give more consumers the opportunity to experience the benefits that MusicMatch Jukebox to offer.''

Thomson unveiled several new RCA digital audio products at the mp3 Summit that will be available later this year -- many of which will integrate MusicMatch Jukebox. These new digital audio products include an RCA brand mp3 personal CD player, an mp3 5-disc CD bookshelf audio system, a hard-disc drive digital media manager for the home that utilizes mp3 technology to store more than 2,000 songs, and two new portable mp3 players that will appeal to both feature-conscious and budget-conscious consumers -- one of which is a tiny, lightweight digital music player the size of a matchbox.

``As co-developer of the mp3 audio compression format and manufacturer of the RCA LYRA player platform, which was introduced last October, Thomson has solidified its position as a leader in driving the popular mp3 format forward,'' said Al Arras, Senior Vice President of Thomson's global audio group. ``Our latest investment in MusicMatch and the integration of MusicMatch Jukebox into our new portable mp3 players, which include the next-generation LYRA player, all combine to help heighten awareness of mp3 as a music standard.''

By combining a rich, interactive feature set with proprietary music personalization technology, MusicMatch Jukebox has become one of the most actively used all-in-one jukebox software programs available. According to recent data from Media Metrix's SoftUsage Report for Q1 2000, MusicMatch Jukebox was actively used more than three times longer per user than that of the closest competing jukebox software program during the period. MusicMatch users averaged 1.3 hours of active use, compared to .4 hours of active use averaged by RealJukebox users during the period. Also, when comparing the total number of active hours that all jukebox software applications were used in Q1 2000, MusicMatch Jukebox was used 47 percent of the time. (i)

About MusicMatch Jukebox

MusicMatch Jukebox is the world's first personal jukebox software. It lets users build extensive collections of CD-quality digital music downloaded from the Internet and recorded from music CDs, vinyl and cassette tapes. MusicMatch Jukebox lets users organize all of their tracks in a digital music database, create custom playlists and play them on their PC in CD-quality. It is also the first jukebox software to offer free CD-quality recording, personalized music recommendations to its users, and an integrated Net Radio tuner. MusicMatch Jukebox is one of the world's most popular audio software programs and is currently bundled with a number of hardware devices, including Creative Labs' NOMAD portable mp3 players and Sound Blaster Live! sound cards, and with select Dell® Dimension® and HP Pavilion PCs.

About MusicMatch, Inc.

MusicMatch (www.musicmatch.com) develops digital audio software that lets people take control over how they access and listen to their music. The company's award-winning MusicMatch Jukebox software turns a PC into a powerful component of a user's stereo system. The company was incorporated in February 1997, and is headquartered in San Diego. Significant investors in MusicMatch include Redpoint Ventures, Intel Capital and Thomson Multimedia. Together with Fraunhofer IIS, Thomson was the co-developer of the MP3 technology and ranks No. 1 in the United States and No. 4 in Europe in sales of consumer electronics.

About THOMSON multimedia:

With sales of 6.7 billion Euros (U.S. $6.5 billion) in 1999 and more than 50,000 employees in more than 30 countries, THOMSON multimedia (Paris Sicovam: 18453) (NYSE: TMS), is the world's fourth largest producer of consumer electronics. The Group has four principal activities: Displays and Components, Consumer Products, New Media Services, and Patents and Licensing. THOMSON multimedia engineers, manufactures, and markets display components and consumer products such as televisions, VCRs, audio systems, digital decoders, DVD players and professional video equipment under the popular RCA and THOMSON brand names. THOMSON multimedia is the parent company of the U.S.-based Thomson Consumer Electronics, Inc. For more information: http://www.thomson-multimedia.com

• MusicMatch and MusicMatch Jukebox are trademarks of MusicMatch, Inc.
• (R) DELL is a registered trademark of Dell Computer Corporation.
• (R) DIMENSION is a register trademark of Dell Computer Corporation.
• (i) Jukebox software applications, as defined by MusicMatch, include MusicMatch Jukebox and RealJukebox.

SOURCE: MusicMatch, Inc.