Loudeye Corp. (LOUD)

[excel]

Loudeye's Subsidiary Vidipax Enters Into Definitive Agreement to Sell Its Assets
11/6/2003 4:09:51 PM


SEATTLE, Nov 06, 2003 /PRNewswire-FirstCall via Comtex/ -- Loudeye Corp. (LOUD) , a leader in managing, promoting and distributing digital media, today announced that its wholly-owned subsidiary, Vidipax, Inc., has signed an asset purchase agreement pursuant to which Vidipax will sell substantially all of the assets and certain liabilities of its media restoration services business to a company controlled by the current general manager OF Vidipax.


Subject to the satisfaction of certain conditions, the purchase price will consist of $1.2 million in cash and the right to receive up to an additional $500,000 in cash based upon the purchaser achieving certain performance targets over a period of two years from the closing date. Loudeye and the purchaser will also enter into a co-marketing and reseller agreement pursuant to which Loudeye may resell media restoration services on behalf of the purchaser for a two-year period.

"Loudeye is exiting its investment in the Media Restoration business to better focus its resources on strategic, core businesses where the company can drive growth and further improve margins and profitability," said Jeff Cavins, Loudeye's president and chief executive officer. "We look forward to retaining a reseller relationship with the new company so we can continue to provide those services to our Digital Media Services customer base. We believe that the transaction creates the most value for our shareholders."

About Loudeye Corp.

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

Forward-Looking Statements

This press release contains forward-looking information within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about Loudeye's planned exit of the Media Restoration segment, goals to improve margins, profitability and growth and other factors. Our forward-looking statements are based on currently available information, which management has assessed, but which is subject to rapid change due to risks and uncertainties that affect our business, including failure to close the transaction contemplated; failure to achieve performance metrics to earn contingent consideration; limited visibility of future demand for our products and services; current uncertainties in our marketplace which may impact expected demand, customer selection criteria and sales cycles; variability in the amount and timing of expenses and cash usage; negative macroeconomic conditions; increased competition; adverse developments in any material customer or copyright holder relationships; ability to acquire and maintain copyright licensing agreements; uncertainty involving intellectual property rights involved with the reproduction and online distribution of digital media; the loss of service of our hosting infrastructure, including the failure of third party service providers; our ability to retain key personnel; and other factors beyond our control. Our forward-looking statements should be considered in the context of these and other risk factors disclosed from time to time in the company's filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly filings on Form 10-Q (available through EDGAR at www.sec.gov). We assume no obligation to update our forward-looking statements.

SOURCE Loudeye Corp.

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