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``Content owners are constantly turning to us for ways to actively promote their music in a cost-efficient manner,'' said Michael Robertson, chairman and chief executive officer at MP3.com (www.mp3.com). ``And while we have never been a content promoter, we understand the significance of making promotional and marketing technologies available, so that content owners have the opportunity to make more money.

``That's why this alliance with AdAce is so important. By following a few simple steps, state-of-the-art promotional and marketing tools can be affordably and effectively used by content owners who want to maximize their exposure-and their revenue. Whether its through the sale of CDs, selling tickets to concerts, or debuting a new band, we believe this technology is going to open revenue opportunities that were not possible before.''

Labels posting their music on MP3.com can fully exploit marketing and promotional tools using the AdAce system, which incorporates functions such as banner storage, campaign reporting statistics and automated billing. This online advertising system makes it easier for content owners to advertise, by enabling content owners to upload existing banners, or easily create dynamic banner advertisements using AdAce's Ad-O-Matic banner creator. Just point and click.

``These marketing and promotional tools, used in conjunction with other revenue opportunities such as subscription or Payback for Playback solutions offer a complete suite of services designed to establish and maintain a potentially profitable online presence,'' continued Robertson.

``We believe that our system will help those content owners who have registered at MP3.com,'' remarked AdAce chief executive officer, Kevin Frazier. ``Our automated sales system and banner creator are a huge value to digital artists and labels looking to promote their band, gigs, music and merchandise.''

To learn more about AdAce and other digital publishing services offered by MP3.com, visit www.mp3.com/artist.

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.

About AdAce

AdAce, Inc. is the first advertising network to develop an automated system for small businesses that includes an integrated online banner creator, banner storage, campaign reporting, and many unique targeting options online. AdAce is focused on small business advertisers, and is building a portfolio of quality websites offering results-based banner advertising that includes category, topic, geographic, and demographic targeting. The company will also offer direct mail, targeted email sponsorships and more, so they can give their customers a range of highly effective advertising options at an affordable price. Incorporated in April of 1998, AdAce has signed deals with InfoSpace, Accuweather, Mail.com, MapQuest, LatinoLink, NetNoir, Bizland, ThinkDirectMarketing and Listen.com. MP3.com joins a host of soon-to-be announced partnerships that are expected to dramatically expand the reach and targeting capabilities of the AdAce Advertising Network. AdAce is also launching an affiliate partner program to drive new advertisers into the Network, and will continue its rapid growth as the company adds new services and special benefits for small business advertisers and its Network partners.

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 agreement with AdAce. 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 of the strategic relationship with AdAce; 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; or Mariana Ramos, Marketing of AdAce, 510-981-4040, ext 204, mramos@adace.com.

SOURCE: MP3.com, Inc.