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MP3.com's Retail Music Division provides web-enabled, business-to-business music delivery solutions to grocery stores, fashion outlets, shopping malls, restaurants and other retail establishments. These establishments are able to select from over 424,000 songs and audio files from more than 67,000 artists at the MP3.com site (www.mp3.com). Subscribers can manage and modify their music selections anytime and anywhere utilizing an online private account page.

``We estimate that retail music licensing exceeds $500 million annually and to properly capitalize on this opportunity, it was imperative to form a distinct business division,'' said Michael Robertson, chairman and chief executive officer of MP3.com. ``The architecture MP3.com constructed to serve its millions of music fans helped us identify, build and leverage this additional new growth opportunity. MP3.com is uniquely positioned to revolutionize this space through digital music delivery.''

Heading the company's new Retail Music Division is Bob Simril, vice president of retail music services at MP3.com (www.mp3.com). Simril's team is responsible for the development of a full product line to benefit retailers and artists alike.

``Utilizing MP3.com's powerful infrastructure and software engineering capabilities, we are able to deliver unsurpassed service to retailers,'' says Simril. ``Subscribers will appreciate substantial savings over what is currently offered and our state-of-the-art music delivery and ad management tools will afford them control and flexibility that was not previously available.''

Subscribers to MP3.com's Retail Music Services can now insert house and merchandiser ads into their music programming, which makes it possible to transform a cost center into a revenue producer. ``Ad reports can be accessed on the subscriber's statistics page which allows them to assess ad performance at the store level, or throughout the entire chain,'' continued Simril. ``We believe that our system's digital efficiencies will result in industry-leading royalties for artists and labels, too.''

For information on MP3.com's Retail Music Division and to integrate its services into your establishment, contact Bob Simril at retailmusic@mp3.com.

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

For information on the MP3 Summit 2000 in San Diego June 20-21, visit www.mp3.com/summit.

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, which enables a growing number of artists to distribute and promote their music worldwide while enabling consumers to conveniently access this expanding music catalog. MP3.com's site contains over 424,000 songs and audio files from more than 67,000 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. Such statements include references to the expected integration of the Retail Music Division and its 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: Implementation of the Retail Music Division; The set-up, scheduling, operation and implementation of MP3.com's Retail Music services; MP3.com's current litigation proceedings; 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, gregw@mp3.com.

SOURCE: MP3.com, Inc