e.Digital Corporation (fka EDIG)

[Tinroad]

Digital World Services Integrates BMG Digital Music with RioPort's PulseOne Media Service
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Business Editors

CHICAGO--(BUSINESS WIRE)--June 1, 2001--Retail Music Expo - Digital World Services today announced the successful integration of BMG Entertainment's digital music offering with RioPort, Inc., the leading music application service provider (ASP), which supports a number of popular online affiliates. Since launching its Retailer Integration solution for BMG in October 2000, Digital World Services has integrated BMG's digital music catalog with over 60 online retailers' sites.

"RioPort is pleased to be working with Digital World Services to provide BMG's digital music catalog to our network of tier-one e-tail partners," said Tony Schaller, chief technology officer at RioPort, Inc. "This relationship is very important for RioPort, as it enables us to significantly further the deployment of premium music content, including heavily sought-after tracks by today's most popular BMG artists, for sale via secure digital download."

Digital World Services' Retail Integration solution includes rights clearing and management as well as retailer integration. These digital downloads are presently offered to consumers in AAC format (Advanced Audio Coding).

"We are excited to have RioPort as a digital one-stop for our digital catalog," commented Sami Valkonen, Senior Vice President, New Media and Business Development, BMG Distribution and Associated Labels. "We also want to acknowledge Digital World Services' retail integration solution, which has played a key role in the RioPort implementation."

The retail integration solution provided to BMG by Digital World Services is designed to ensure maximum reach and accessibility to consumers. Important features include a special module for the integration of retail shopping carts and gift functionality and will soon contain additional features to further enhance usability and consumer reach, such as subscription models.

"Everyday we improve the efficiency and overall capabilities of what is already a very successful retailer integration solution," said Johann Butting, chief executive officer of Digital World Services. "Integrating BMG with RioPort and their significant portfolio of e-tail partners will demonstrate to an even greater audience just what our solutions can do. And that is very, very exciting."

About Digital World Services
Digital World Services provides digital rights management (DRM) solutions and services for the entertainment and publishing industries. The company provides convenient digital content delivery solutions that are transparent for the consumer, retailer and publisher, while protecting the owners' copyrights. Based in New York City and Hamburg, Germany, Digital World Services is part of Bertelsmann AG, one of the world's largest media companies.

Digital World Services offers services such as rights clearing, financial settlement and administration of usage information. The company provides solutions for digital content delivery, content hosting, system integration and distribution platforms.

In February, Napster had announced that they are working with Digital World Services to build a secure file-sharing system. Digital World Services' preferred technology partner is InterTrust Technologies Corp., the leader in DRM technology.