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MMS 1.0 is the in-store hardware component helping to drive MP3.com's (www.mp3.com) new Retail Music Program, which can provide business-to-business music delivery solutions to grocery stores, fashion outlets, shopping malls, restaurants and other retail establishments. This Linux-based device includes a built-in phone line or Ethernet cable data connection that allows retail stores to provide their customers with customizable, world-class caliber music content, at a substantial savings over traditional music delivery systems. Once installed, the subscriber never needs to interact with the MP3 Media Server 1.0 again. Instead, they use a web-based management tool.

Businesses can use a single account to control multiple locations throughout the world. Utilizing the expansion capability in MMS 1.0 to manage the musical selections, promotional announcements and advertisements played in their establishments, retail subscribers have the ability to transform a traditional cost center into a potential revenue producer.

``We estimate that a typical retail chain with 100 stores will pay up to $300,000 for music services over a traditional five-year contract,'' remarked Michael Robertson, chairman and chief executive officer at MP3.com. With our innovative music delivery solution, we believe we can save operators up to 50%, which means that if you have 100 stores, we could save you up to $150,000 over the course of five years.``

According to Bob Simril, vice president of retail music services at MP3.com, the MMS 1.0 will enable businesses to access an entire catalog of top-quality digital artists from a library of approximately 500,000 songs and create playlists which can be tailored to suit customer preferences. ``The music selection is remarkable, the savings are significant, and because custom advertisements can be added to programming, a business can actually make money with this music model,'' said Simril.

``The MMS 1.0 delivers a low-cost, high-performance solution, continued Simril. ''Retail subscribers will love the low-touch simplicity and reliability of the player. After simple installation, they manage the music selection, shuffle play and ad management features from their private, password-protected homepage located at MP3.com. I encourage businesses wanting to save money while providing their customers with a superior and customizable listening experience to visit www.mp3.com/retail.``

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 integration, fulfillment and operation of MP3.com's MP3 Media Server 1.0. 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 implementation of the MP3 Media Server 1.0; 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, contact: Greg Wilfahrt, Director of Public Relations of MP3.com, Inc., 858-623-7280, pr@mp3.com.

SOURCE: MP3.com, Inc.