Statement of Hank Barry, CEO of Napster, Following Modified Injunction Ruling

REDWOOD CITY, CA - March 6, 2001 - Napster will follow the District Court's order. Even before the Court entered the order, we began making efforts to comply with what we believed to be the dictates of the 9th Circuit's ruling.

The 9th Circuit and the District Court rejected the recording industry's argument that Napster is inherently illegal. The District Court's order holds that the recording industry and Napster share the burden of complying. Plaintiffs are required to certify that they hold the rights to the material and that it is available on Napster. As we receive notice from copyright holders as required by the Court, we will take every step within the limits of our system to exclude their copyrighted material from being shared.

We will continue to press our case in court and seek a mediated resolution even as we work to implement the court's order. We will continue to seek a settlement with the record companies and to prepare our new membership-based service that will make payments to artists, songwriters and other rights holders.