e.Digital Corporation (fka EDIG)

[Tinroad]

Digital World Services Introduces Promotional Products and Subscription Solutions for Secure Digital Distribution of Music
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COLOGNE, Germany--(BUSINESS WIRE)--Aug. 16, 2001--

Company Delivers Promotional Solution with Music from BeSonic, BMG Entertainment and NYC Independent Bands

Popkomm - Digital World Services today announced the launch of two new digital rights management (DRM) based distribution solutions: DWS Subscription and the DWS Promotional Products.

In the developing market of digital product delivery, Digital World Services took another step forward, adding to what already is regarded as an increasingly comprehensive DRM solutions portfolio.

At Popkomm in Germany this week, Digital World Services is promoting DWS Promotional Products by providing CDs powered by the solution itself, demonstrating how downloading secure music using the DRM company's solutions can work. Music for the promotion was contributed by German music portal BeSonic, BMG Entertainment and various independent rock bands from New York City. The promotion is supported by Digital World Services' technology partners Sonopress and InterTrust Technologies Corporation (NASDAQ: ITRU), the leading developer of Digital Rights Management (DRM) technology".

"What better way to promote our new offering than with our own DRM solution?" noted Johann Butting, CEO of Digital World Services. Some 4,000 Popkomm attendees will receive a CD at the Digital World Services booth, which allows them to connect with a promotional Web site. They can then download free music using a random code number that simulates a subscription payment and choose five tracks from a total of fifteen tracks. All downloads are secure and protected by the DWS Promotional Products solution.

DWS Promotional Products is a "White Label" solution that lets content owners and distributors license digital content to companies that use it in special promotion offers with their products and services. The licensed content is fully protected. When consumers redeem the promotional offer, their demographic information can be captured and distributed. For example, a record label could distribute promotional downloads of a feature track from a band's new album through their fan site in an effort to increase sales of their physical album. In another example, music labels can license their music for promotional purposes to companies that are unable to sell goods through the Internet.

The DWS Subscription solution enables partners to distribute digital music on a subscription basis by charging consumers an access fee. Subscriptions can be tailored to meet the target markets allowing for different tiers of subscriptions and the ability to upgrade. Different packaging models include pre-defined play lists that allow for updating frequency, a consumer-driven model that enables the consumer to fill a limited number of "active slots" for a certain time period as well as broader genre-based subscription models. DWS Subscription provides tools to develop tailored business rules that track the amount of music a consumer is permitted to access, the duration of each access period and manage the expiration and renewal of usage rights.

At the end of the time period, consumers automatically receive an email informing them about the expiration of their access rights. This enables affiliates to drive consumers back to their Web site on a regular basis, thereby maintaining a relationship with the consumer while at the same time providing new content with a single click.

"DWS Subscription allows our clients to realize the innovative pricing and packaging models they need for a successful online strategy," added Mr. Butting. "Our subscription solution can operate as a stand alone or in combination with other solutions such as DWS Retail Integration. This enables online retailers to offer and sell music subscriptions through existing e-commerce-platforms. The implementation effort is kept at a minimum - the solution is seamlessly integrated into existing shopping cart systems. The digital rights marketplace is about being flexible and integrated. And that's what our solutions are all about."

About Digital World Services

Digital World Services is a digital rights management (DRM) company providing tailored solutions and services for securing and delivering digital content for all media types including music, publishing, video, games and software.

DWS Rights Clearing, the premiere engine that drives all of DWS' secure digital distribution solutions is unmatched in power and designed to maximize profit and efficiency for all digital business solutions. Among the solutions offered are, retail integration, subscription, promotional products, and P2P secure file sharing.

Digital World Services is the only DRM company that offers experienced professional services such as initial and on-going consulting, end-to-end project management, system integration, content packaging, 24/7 customer support and catalog management.

Operating with offices in New York and Hamburg, Germany, Digital World Services is a subsidiary of Bertelsmann AG, one of the world's largest media companies.


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CONTACT: Media:
Digital World Services
Vanessa Erhard, 212/782-7679
[e-mail]