Magex Expands Digital Rights Management Around The World

Partnerships With Mitsubishi And KPN Royal Dutch Telecom Takes Intertrustís Digital Rights Management Software Into The Global Market

3-May-00

In a continuing mission to offer digital content on a global scale, Magex expanded into Japan, Asia Pacific and Europe by forming distribution partnerships with Mitsubishi and KPN Royal Dutch Telecom. These endeavors, in conjunction with an $80 million first round funding announcement, sets Magex a step ahead of its competitors as the leading player in the global digital content market. Magex is a revolutionary digital commerce service designed to make it easier and more secure to buy and sell digital products such as music and software over the Internet. It enables businesses to maximize the full potential of the digital download market - a market estimated to be worth some $27 billion of the total $275 billion digital content market by 2003, according to investment bank Credit Suisse First Boston. ""The Internet is a global market and for companies to succeed in this space they must have a global approach to business,"" said Peter Beverley, Magex Chief Executive Officer. ""Magex is the only multi-currency, multi-language digital commerce solution available on the market which is why world class companies such as Mitsubishi and KPN have decided to partner with us. Our software will not only be available in English and Japanese by the end of this quarter but our clearing-house will also able to process transactions, in US Dollars, Pounds Sterling, Japanese Yen and Euro."" Mitsubishi Two of Japanís leading record labels, Avex and Pony Canyon, are currently trialing the Magex system. Other companies involved in this trial include Japanís largest karaoke content provider, Daiichi Kosho, Asian music portal oneaudio.com, digital music distributor Music.co.jp and Indie distributor Bitwave. Japan is the worldís second largest and fastest growing music market with over 18.5 million current Internet users. The Japanese digital commerce market was valued at $110 million in 1999 and is estimated to soar $7.13 billion by 2004. This, combined with the Asia-Pacific region, marks a major business opportunity for both companies who aim to have a substantial market share by 2001. Magex is working to incorporate its service into Mitsubishiís existing ""RightsWorks"" service, by providing financial payment clearing facilities and the consumer interface. In addition, both companies are also working together with MusicMatch, the worldís best selling MP3 software program and RioPort, the leading producer of portable digital music players, to ensure consumers have maximum choice for the delivery of digital content. The two companies will initially focus on the growing digital music market in Japan, before rolling out the services to other digital content formats including books, newspapers, market reports, video, computer games, software and digital images across the Asia-Pacific region. ""We are delighted to be working with Magex, who has proven experience in providing businesses with a secure and profitable way of protecting digital content such as music and video over the Internet,"" said Hajime Kimura, Division COO, E-Commerce Division, Mitsubishi Corporation. ""Together the two companies aim to form a global alliance that will maximize the potential of the digital commerce market."" KPN Royal Dutch Telecom KPN Royal Dutch Telecom (KPN) is one of Europeís leading telecommunications companies. KPN has strong relationships with businesses in the Benelux region. Once the service goes live it will offer Magexís digital commerce service and payment infrastructure to European businesses that want to take advantage of the rapidly expanding digital content market. The Magex software will be translated into Dutch and French languages and its multi-currency digital clearing-house will support Euro transactions. Soon European consumers will have the confidence to buy digital goods such as music, videos, computer games, electronic images, books and business reports securely over the Internet using a localized Magex service. Kees Smaal, Business Area Manager Internet Services of KPN Telecom, added, ""Magex is a highly respected partner which will provide KPNís customers with a trusted digital commerce service and a world class payment infrastructure for the delivery of digital content. By working with Magex we can help our customers unlock their digital content potential and develop it into their web based offerings."" About Magex Magex is a digital commerce service developed to create a secure and efficient environment for the trading of digital content on the Internet. The Magex technology addresses many of the security and payment problems surrounding digital distribution, enabling fast, safe and easy web transactions. Magex has raised $80 million in a first round private equity funding, led by Goldman Sachs funds and Capital Z Financial Services Fund II, LP. Other major share holders include founding company NatWest (now owned by Royal Bank of Scotland), Universal Music Group (a division of the Seagram Company Ltd (NYSE: VO), InterTrust Technologies Corporation (NASDAQ: ITRU), Reuters (NASDAQ: RTRSY), GE Capital, Europ@web, investment affiliates of Soros Private Equity Partners LLC, SLF Ventures, Westpool Investment Trust and Kistler Associates. This funding will be used to bring Magexís innovative digital commerce services to market on an international scale during the summer of 2000. Incorporating Digital Rights Management from InterTrust Technologies Corporation, Magex delivers the persistent protection of copyright products such as music, information and games in any format alongside a simple, trusted payment process. Because businesses can now offer their best products for download with confidence their customers will appreciate the broader, richer choice on offer. Consumers and content providers can find more details and register their interest at the Magex Web site. http://www.magex.com.

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