AT&T Wireless and Gibson Audio Deploying Loudeye's New Private Label Digital Music Solutions

The Loudeye Digital Music Store and iRadio Products Enable Any Company To Rapidly and Cost Effectively Launch a Customized Digital Music Store and Service

HostReview.com
Tuesday, December 16, 2003; 12:00 AM

December 15, 2003 — Loudeye Corp. (Nasdaq: LOUD - News), a leader in managing, promoting and distributing digital media, today introduced two customer-branded product offerings based on Microsoft Windows Media 9 Series and the Loudeye Media Framework. The Loudeye Digital Music Store is a complete, outsourced digital music store that can be integrated with customers' existing technology, branding and infrastructure to give them instant access to a digital music business. The Loudeye iRadio Service offers 100 channels of pre-programmed music, which can be delivered to any Internet connected device supporting Windows Media 9 Series and Windows Media Digital Rights Management.
Companies using the branded products on the Windows Media platform include AT&T Wireless and Gibson Audio, a new consumer electronics division of Gibson Guitar Corp.

In related news today, Microsoft Corp. announced it is joining forces with Loudeye to enable the rapid deployment of branded digital music services and stores using the combination of Loudeye's new products and Windows Media 9 Series.

"Loudeye's digital music solutions are important for helping customers go to market with high-quality music offerings built using Windows Media 9 Series," said Dave Fester, general manager, Windows Digital Media Division at Microsoft. "Loudeye's industry leadership and technical expertise enable companies using Loudeye's solutions, to rapidly build and launch a world-class branded music store or radio services using the Windows Media platform."

The Loudeye Digital Music Store and Loudeye iRadio Service provide a means for any company to rapidly and cost effectively launch a digital music store and/or Internet radio service under their own brand - rather than spending millions of dollars to develop their own service utilizing a third party player and giving up control over their customer relationships.

The Loudeye Digital Music Store

The Loudeye Digital Music Store is a customer-branded, turnkey solution designed for any online business to extend their brand, increase sales, retain customers and differentiate themselves in the marketplace by capitalizing on the popularity of digital music.

The Loudeye Digital Music Store represents the integration of all the components necessary to create, promote and operate a digital music store online from a single company. The Loudeye Digital Music Store can quickly help businesses promote, sell music and leverage cross merchandising opportunities.

The Loudeye Digital Music Store offers the following features:

• Digital music download delivery
• Branded players to provide both live and on-demand audio and video content to end users
• Digital rights management using Windows Media Digital Rights Management
• Usage reporting and analytics
• Digital music royalty settlement
• Streaming music samples and cover art
• Music metadata
• Rich media ringtones
• The Loudeye iRadio Service

The Loudeye iRadio Service offers 100 channels of pre-programmed music delivered through a customer-branded player interface and capable of supporting delivery to a range of consumer music devices and appliances. The iRadio service can be deployed online for retailers, portals and other content companies as well as offline for consumer electronic devices and appliances, digital home entertainment systems and other digital broadcasting outlets.

Both products are built on the Loudeye Media Framework and Windows Media 9 Series, a complete set of technologies and applications leveraging Loudeye's 6 years of industry experience and $60 million infrastructure investment. The Media Framework is designed to support business models including wireless ringtones, music samples, branded media players, consumer music appliances, Internet radio and digital music downloads.

"We've just seen the first wave of digital music stores and services hit the market and quickly demonstrate the potential of online music as a powerful marketing and branding tool, revenue driver and important business component," said Jeff Cavins, Loudeye's president and chief executive officer. "In coming months, we'll see a second wave of deployments, this time extending beyond online retailers and other core music companies to new industries we've never thought to connect with digital music."

"While customers' industries may differ widely, they share a common demand for a complete digital music store and Internet music programming solution with the services and applications needed to effectively generate music sales, enhance visibility and grow with their business," continued Cavins. "The customer wins we've announced today demonstrate the far-reaching industries and deployments these products can serve."

Pricing and Availability

Loudeye's Digital Music Store and iRadio service are available immediately. Visit www.loudeye.com or call 877-502-5488 for more information.

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 Loudeye's Digital Music Store and iRadio service, its expected success, customers that plan to deploy Loudeye's new customizable products and the initial details of those planned deployments, and statements by Loudeye's president and CEO. These statements are based on current estimates and actual results may differ materially due to risks, including the possibility of adverse changes in the market for distribution of digital audio and video that Loudeye serves; adverse or uncertain legal developments with respect to copyrights surrounding the creation and distribution of digital content; pricing pressures and other activities by competitors; the failure of Loudeye's hosting infrastructure; the complexity of Loudeye's services and delivery networks; any problems or failures in the structure, complexities or redundancies of Loudeye's network infrastructure; difficulties in the delivery of music content over wireless networks and to non-PC devices, failures in third party telecommunication and network providers to provide required transmission capacity; Loudeye's capacity to scale and support third party technologies; lack of market acceptance for Loudeye's products and services; the possible delay in the adoption of digital media or related applications on the web in general; 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.

NOTE: Other product and service names mentioned herein are the trademarks of their respective owners.

Contacts Media/Public Relations: Karen DeMarco, mPRm for Loudeye, 323.933.3399, kdemarco@mprm.com Investor relations: Michael Dougherty, 206.832.4000, ir@loudeye.com