Loudeye Corp. (LOUD)

[excel]

Loudeye Announces Strategy to Expand Into Wireless Digital Music Distribution Market in North America, Europe and Japan
7/10/2003 7:05:00 AM


SEATTLE, Jul 10, 2003 /PRNewswire-FirstCall via COMTEX/ -- Loudeye Corp. (LOUD) , a leading provider of services for the management, promotion and distribution of digital media, today announced its strategic expansion into the wireless digital music distribution market in North America, Europe and Japan, with the signing of service contracts with four leading providers of wireless content to subscribers of several major wireless carriers. Loudeye's wireless offerings include digital distribution services for rich media ring tones and enhanced wireless media delivery services for mobile phones and devices. Leading research firm IDC projects the U.S. ringtone market alone will grow to more than $1 billion by 2007.


By working with Loudeye, wireless carriers and entertainment companies can offer their mobile users the ability to purchase licensed rich media ringtones of music tracks, preview digital music samples and view information related to the music. Loudeye's rich media ringtones provide wireless consumers with a 3-30 second clip of the actual song recording compared to traditional mono or polyphonic ringtone offerings.

Loudeye recently signed contracts with a leading U.S.-based provider of wireless content as well as a leading Japanese provider of wireless content, each of whom will offer consumers rich media ring tones for mobile phones from a large library of content provided by Loudeye. Loudeye provides these customers content delivery and rights clearing services. Loudeye receives a wholesale fee for each rich media ringtone purchased and downloaded by a wireless subscriber and pays royalties to the appropriate music label. The ring tones are delivered through Loudeye's proprietary digital music archive, digital distribution systems and broad relationships with music labels. Loudeye initially will be providing content from The Orchard, the largest distributor of non-major label music in the world, whose catalog consists of content from over 5,000 independent labels and thousands of artists from 30 countries.

Loudeye is also providing enhanced wireless media delivery services including music data and identification services. Loudeye recently signed contracts with two customers for these services, for which Loudeye is paid a service fee for access to its metadata database, including metadata for over 4 million tracks and weekly new releases.

"The growing popularity of wireless music in the U.S., Europe and Asia provides a significant opportunity for artists to connect with their fans in new ways," said Steve Haase, senior vice president of business development of The Orchard. "Through their licensed music archive and distribution systems, Loudeye enables The Orchard to make available over 120,000 rich media ringtones to this growing marketplace. We look forward to providing our artists a new channel to sell their music to a global wireless audience."

"Our digital media management and distribution systems were built on a highly flexible and scalable platform capable of supporting emerging opportunities in the marketplace," said Jeff Cavins, Loudeye's president and chief executive officer. "Wireless media delivery is reaching an important inflection point in its adoption, particularly overseas where it's seeing tremendous growth. The extension of our services into the mobile media space demonstrates our strategy to provide turn-key digital media distribution services to support all means by which digital music can be purchased and enjoyed by consumers."

About Loudeye Corp.

Loudeye provides the business infrastructure and services for managing, promoting and distributing digital content for the entertainment and corporate markets. For more information, visit www.loudeye.com.

Forward Looking Statements

This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the growth of Loudeye's business within wireless digital music distribution, including the anticipated adoption of rich media ringtones and enhanced wireless media delivery services; expected benefits of Loudeye's digital music distribution services, including ringtone market growth in the US, Europe and Japan; expected consumer adoption; timing of full customer deployment of ringtones; statements about Loudeye's ongoing relationship with The Orchard; and the statements made by Loudeye's president and CEO. These statements are based on Loudeye's opinion of current trends and actual results may differ materially due to risks, including adverse changes or a slow down in the adoption of digital media and outsourced services in the markets Loudeye serves; the loss of any key customers; the failure to continue to maintain or develop new copyright licenses to deliver current and future services; the failure or loss of service of Loudeye's technological infrastructure; the complexity of Loudeye's services and delivery networks; and other risks set forth in Loudeye's most recent Form 10-Q, Form 10-K and other SEC filings which are available through EDGAR at www.sec.gov. Loudeye assumes no obligation to update the forward-looking statements.

SOURCE Loudeye Corp.

investors, Michael Dougherty of Loudeye, [phone], or
[e-mail]; or media, Andrew Cullen of Barokas Public Relations,
[phone], or [e-mail], for Loudeye


http://www.loudeye.com