MusicNet Announces New Round of Funding

NEW YORK – May 22, 2003 – MusicNet, a leading digital music company, announced today that it recently completed an additional round of funding from the company’s original group of shareholders which includes Bertelsmann AG, EMI Recorded Music, RealNetworks and Warner Music Group. Specific financial details were not disclosed.

Alan McGlade, CEO of MusicNet, stated: “As MusicNet continues to lead the digital music service industry, it is rewarding to have the original companies that founded MusicNet continue to be committed and supportive. This is further evidence that our shareholders are committed to legal music services that respect copyright protection. While we are a lean, strategically focused company, we will continue to set the bar because of our unique business approach as the digital music space grows and matures.”

MusicNet’s current product version is available through the MusicNet on AOL service, AOL's first premium online music subscription service, designed to give members the best way to find, download, listen to and burn digital music safely and legally. The service features a catalog of more than 300,000 complete, virus-free music files from all five major record labels and major independents, as well as exclusive content such as recordings from Sessions@AOL. Subscribers to MusicNet on AOL can find and listen to CD-quality music, manage their music library and burn CDs all in one seamless experience. MusicNet’s server and client platform is powered by RealNetworks’ Helix™ software and digital rights management technology and all tracks available through the MusicNet service are offered in high-quality RealAudio®.

About MusicNet
MusicNet is a leading digital music company. The most widely distributed digital music service for streaming, downloading and burning music online, MusicNet offers the music of major and independent record labels – including Warner Music Group, BMG Entertainment, EMI Recorded Music, Sony Music Entertainment, Universal Music Group, Zomba, Ritmoteca, Brentwood Music and Sanctuary. As both a service and music content provider, MusicNet supports companies seeking to fully integrate digital music services into their online music offerings.