Wal-Mart Launches Test of Low-Price Digital Music Downloads

New Service Will Provide Value, Selection, and Simplicity to Online Customers

BENTONVILLE, Ark., Dec. 18, 2003 /PRNewswire/ -- Value. Selection. Simplicity. Wal-Mart plans to deliver all three to customers as it begins testing a new low-price online Music Downloads service at www.walmart.com. The testing phase begins today and, based on customer response, will be officially rolled out early next year.

"We've found that easy access to a wide range of music is very important to the Wal-Mart customer," said Kevin Swint, Walmart.com's senior category manager of entertainment media. "With 64 percent of our customers online, we see digital music downloads as a natural extension of the music selection offered in Wal-Mart stores. We're excited to offer this convenient service at the value and selection our customers expect from Wal-Mart."

During the test period, customers can visit www.walmart.com to browse a catalog of hundreds of thousands of songs -- all available for download and purchase at only $0.88 per track. Wal-Mart plans to gather customer feedback over the next few months, make modifications based on that feedback, and then officially launch the service in 2004.

Whether experienced with digital music downloads or downloading for the first time, customers will find the buying process at www.walmart.com straightforward and user-friendly. Customers will have the flexibility to play downloaded music on their Windows PC, burn songs to a CD, or transfer music to compatible portable devices. The music files will be available in WMA format. Usage rights will be uniform across the entire catalog of music, simplifying the experience of owning downloaded music for customers.

Added Swint, "The test phase for this new service is important to gauge customer feedback, so that we can deliver a quality music downloads service that customers will want to use time and time again." The Music Downloads service was developed in partnership with Anderson Merchandisers, which supplies music to Wal-Mart and Walmart.com, and will feature a wide selection of songs provided by Liquid Digital Media, formerly Liquid Audio, a leading provider of digital media fulfillment services. Anderson Merchandisers acquired the assets of Liquid Audio in January 2003.

Wal-Mart Stores, Inc., operates Wal-Mart Stores, Supercenters and Neighborhood Markets, and SAM'S CLUBS in the United States. Last year, Wal-Mart Stores, Inc., contributed more than $140 million to support communities and local nonprofit organizations. Customers and associates raised an additional $70 million at stores and clubs. Wal-Mart Stores, Inc., has received the 2003 Fortune magazine No. 1 Most Admired Company in the U.S., along with receiving the 2002 Ron Brown Award, the highest Presidential Award recognizing outstanding achievement in employee relations and community initiatives. More information about Wal-Mart can be located online at www.walmartstores.com and www.walmart.com. The SAM'S CLUB Web site can be accessed at www.samsclub.com. And more information about Wal-Mart's Good Works community involvement is available online at www.walmartfoundation.org.