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Record Label Group to Utilize MP3.com Infrastructure

``Through our relationship with the Beggars Group, we intend to create a profitable subscription channel by building a model that benefits both content owners and consumers,'' commented Michael Robertson, chairman and chief executive officer of MP3.com (www.mp3.com). ``We believe that our collaboration with the Beggars Group will help both companies leverage the massive infrastructure we have built at MP3.com in order to create a highly flexible music subscription channel with recurring revenue streams.''

Coming on the heels of the successful Classical Music Channel and the Children's Channel recently launched by MP3.com, the Beggars Group Channel will provide visitors with on-demand access to streaming music and selected promotional mp3 downloads. Both companies intend to additionally leverage the content offered by the Beggars Group with future subscription channels.

``The Beggars Group is extremely pleased to be one of the first independent or major labels to roll out a functional, large-scale subscription model trial focused on consumers,'' said Dick Huey, Senior Director of New Media for the Beggars Group. ``MP3.com allows us and our partners to integrate a state-of-the-art subscription service with a broad offering of independent music and events by our artists.''

Consumers will link to their My.MP3.com account from BG web sites or MP3.com to access the Beggars Group Channel. Additionally, BG plans marketing and promotional efforts for their channel through their partners, Playlouder.com (www.playlouder.com) and Avdeck (www.avdeck.com) the Beggars Group's Internet radio station.

[Playlouder.com is a UK-based music portal that has already inked an exclusive licensing deal with the Beggars Group and has acquired exclusive online rights to events such as the Glastonbury Festival (Europe's oldest and biggest music festival)].

``We believe that subscription streaming will be an important mode of music consumption in the future,'' said Martin Mills, Chairman of the Beggars Group.

``Through our partnership, the Beggars Group will have access to a full set of administration tools which ensure 100% control of their content, including the designation of streaming and downloadable content, setting content release dates, and providing 'limited time offers' on selected downloads,'' added Chris Montgomery, Vice President of Channel Development at MP3.com and head of the company's Subscription Division. ``They will also have access to all statistics related to the ways in which consumers interact with their content and the revenue generated on a per listen basis.''

For more information on MP3.com's Channel services, contact Chris Montgomery at channels@mp3.com. For information regarding the Beggars Group channel, contact Dick Huey at dhuey@beggars.com.

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

About MP3.com

MP3.com, Inc. has created what it believes is a unique and robust technology infrastructure for the storage, management, promotion and delivery of digital music. As the Internet's premier Music Service Provider (MSP), the company is dedicated to providing consumers with anytime, anywhere access to their music using any web-enabled device. The company's web site hosts what MP3.com believes is the largest collection of digital music available on the Internet, with more than 562,000 songs and audio files posted from over 87,000 digital artists and record labels. Dedicated to growing the digital music space, the company's products and services include on-demand Subscription Music Channels, an innovative Retail Music Program, a Syndicated Radio Division and others. Additionally, through the company's MSP initiative, MP3.com is partnering with a variety of forward-looking technology companies to expand its digital music strategy. MP3.com's common stock is 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 Beggars Group

The Beggars Group is one of the largest and most influential music groups in the UK and is seen as a leader in the UK market in the embrace of digital technology and marketing.

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 the planned launch of the Beggars Group Subscription Channel and activities expected to occur in connection with the agreement with the Beggars Group and with MP3.com's other Subscription Channels. 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 planned implementation of MP3.com's Music Subscription Channel and its relationship with the Beggars Group; 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 and its most recent report on Form 10-Q.

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

SOURCE: MP3.com, Inc.