e.Digital Corporation (fka EDIG)

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EMI Music Publishing Grants License to FullAudio for Digital Music Subscription Service

Catalog-Wide License with World's Largest Music Publisher for FullAudio's Cache-Download Subscription Service
http://biz.yahoo.com/bw/010625/2157.html

NEW YORK and CHICAGO--(BUSINESS WIRE)--June 25, 2001-- FullAudio today announced a licensing agreement with EMI Music Publishing, the world's largest music publisher, and winner of the ``Publisher of the Year'' Award in 2001, a significant step in FullAudio's effort to secure legal content from all music publishers and all five major record labels.

FullAudio is one of the only music service providers to remain independent of the major media companies, offering the industry and consumers a service free of competing interests. This license with EMI Music Publishing allows FullAudio to provide consumers with tracks to which EMI Music Publishing controls the digital rights in the compositions. The non-exclusive agreement licenses EMI Music Publishing compositions to FullAudio's unique cache-download, subscription service.

``We at EMI Music Publishing have always believed that the Internet will enable consumers to find and listen to the music they love in new and more convenient ways. So it is a great pleasure when we are able to support a new service like FullAudio's online subscription service which holds the prospect of doing exactly that,'' said Martin Bandier - Chairman and CEO of EMI Music Publishing.

``This agreement pushes us toward achieving our goal of being the first independent company to deliver a fully integrated, digital music subscription service with licenses from all music publishers and labels,'' said Chris Copeland Gladwin, Chairman and CEO of FullAudio. ``With our cache-download technology complete, EMI Music Publishing brings us that much closer to giving consumers the digital music service they have been waiting for.''

Cache-Download vs. Streaming Technology

FullAudio's patent-pending solution provides a higher-quality music experience than the streaming music services that are or soon will be on the market. FullAudio's music service offers consumers two distinct advantages over streaming providers. First, whereas the listening quality of streaming music is only as good as a user's Internet connection, FullAudio delivers superior sound quality, regardless of connection speed. Second, FullAudio enables consumers to play tracks when they're not connected to the Internet, allowing them to take music with them on the go.

The FullAudio Subscription Service Model

FullAudio is creating a subscription service to provide a unique, cache-download platform, available as a stand-alone service or provided to distribution partners as the engine for their own co-branded, consumer digital music service. FullAudio's service strategy includes securing digital rights from music publishers, such as EMI Music Publishing, and all five major and independent record labels to add legal content to the offering it provides to its partners. FullAudio has begun internal testing of its service.

For a monthly fee, the FullAudio subscription service provides fans with unlimited play of a set number of tracks (subscription ``slots'') they choose. Much like the subscription models of cable television, fans will have access to their FullAudio music service only as long as their account is in good standing. Also very much like cable, FullAudio offers varying levels of subscription service, providing fans with competitive pricing options related to the amount of music to which they choose to subscribe. The higher the level of subscription (Silver, Gold, Platinum), the more slots consumers are given to fill with their favorite and new music. Music transferred to fans through the FullAudio service is unlocked from the memory on the consumer's PC by the FullAudio service, a seamless process for easy listening when the subscription is maintained.

About EMI Music Publishing

EMI Music Publishing is EMI Music Publishing is the world's largest music publishing company. EMI's writers include: Janet Jackson, Lenny Kravitz, Diane Warren, Sting, Rod Stewart, Aerosmith, Gloria Estefan, Depeche Mode, Counting Crows, Third Eye Blind, Matchbox 20, Puff Daddy, Jay-Z, Hootie and the Blowfish, Blur, Texas and Jamiroquai.

About FullAudio

FullAudio Corporation is a digital music subscription service company working with the music industry, artists and songwriters to create a legal and secure means to distribute music to consumers. Delivering diverse content from the industry's leading record labels and other music resources, FullAudio provides a personal service that allows fans to discover new music, create their own collections, and listen to digital music on PCs and a range of portable devices. FullAudio's unique music subscription service platform provides its distribution partners with the ability to offer the FullAudio music service on the products they deliver to consumers.

Founded in April 1999, FullAudio's advisors and investors include Larry Rosen, both founder and CEO of N2K, the company behind Music Boulevard, and co-Founder and CEO of GRP records; Joel Schoenfeld, former general counsel and SVP of BMG Entertainment; Randy Komisar, who helped launch both TiVo and WebTV; Kettle Partners; New Enterprise Associates; and Venture Strategy Partners. For more on the company, please visit www.fullaudio.com.