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New Platform Enables Audio Content Owners To Create Potential Revenue Streams Through Subscription Channels

The program gives audio content owners the ability to create and manage on-demand subscription channels. Additionally, the digital subscription platform offers content owners access to a robust system of tools and services including security, royalty tracking technology, daily reports and complete web-based management. While channels will be initially categorized by musical genre, MP3.com plans to extend its channel network to encompass all audio content, whether it is music, spoken word, educational or business-related content.

``We believe the subscription platform represents an excellent opportunity for large and small content owners alike to make money from music and audio content in the future,'' commented Michael Robertson, chairman and chief executive office of MP3.com (www.mp3.com). ``Our digital subscription program is an integral component of a three-tiered system that is designed to encourage potential revenue generation online. By combining monies derived from our Payback for Playback program, just-in-time CD sales, and our new subscription system, we believe content owners can maximize online earnings potential.''

The new digital subscription channel utilizes the same technology that was created for MP3.com's recently launched Classical Music Channel (www.mp3.com/channels). Consumers can preview each available channel before deciding to subscribe. MP3.com users can also add any selected subscription channel to their My.MP3.com personalized music manager. To browse channels, categorized by genre and ranked according to popularity, visit channels.mp3.com.

``Our subscription model is in its infancy stage,'' continued Robertson. ``We are involved in the creation of a new platform that everyone in the digital music space is excited about. As the subscription market matures, we believe this model will reveal significant revenue possibilities for content owners.''

The new digital channel program allows musicians, labels and content owners who post music on MP3.com to create a new channel in a matter of minutes. MP3.com places no limit on the amount of audio content that may reside in a channel. Content owners set the price for their individual channel and designate the material to be made available. Additionally, content owners have the option of making audio content available for streaming or downloading, and may refresh content on their channel at any time.

``A great example of an audio channel created by a digital artist can be found at www.mp3.com/lionaboyd,'' commented Chris Montgomery, vice president of channel development at MP3.com. ``This world-class guitarist was one of the first digital artists to recognize the potential of a subscription system by taking a library of her old albums and making them available online.''

For more information on MP3.com's Channel services, contact Chris Montgomery at channelsinfo@mp3.com.

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 MP3.com's Digital Publishing Channel Program and related programs and services, and the revenue possibilities available from these programs and services. 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 acceptance of the Digital Publishing Channel Program; 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, 858-623-7280, pr@mp3.com/

SOURCE: MP3.com, Inc.