AudioSoft And Magex Partner To Enhance The Secure Digital Distribution Of Music On The Internet

Digital Commerce And Digital Copyright Management Leaders To Enhance Online Music Tracking

18-May-00

Magex, a digital commerce service, and AudioSoft, a digital copyright management solutions provider for the music industry, announced their intention of finalizing a contract that will lead to the development of a data product that will support music labels, publishers and copyright collection societies. This product will be able to track the usage of online music to provide accurate and timely information on copyright to the appropriate music rightsí holders. AudioSoft has developed the first business-to- business online system for managing digital copyrights that tracks, downloads, previews and Webcasts by server location and country of consumption. Relevant copyright law is then applied allowing unique business licensing rules definitions, and then the relevant information is reported to the appropriate rightsí owners and their representatives. ""Our partnership with AudioSoft will ensure that the music industry is able to audit consumption of digitzed music and then compensate the appropriate rightsí holders,"" said Peter Beverley, CEO of Magex. ""It is compelling to bring together two pioneers who already have services available in the market. We look forward to this project and further joint marketing initiatives in other industries such as publishing and software."" The Magex digital commerce service is built upon sophisticated digital rights management technology provided by InterTrust (NASDAQ: ITRU), the MetaTrust Utilityô. It delivers persistent protection of content and rights alongside proven transaction and financial clearing capability. This allows consumers to pay safely and instantly for digital content purchased via an electronic wallet, a Magex software application resident on the user's PC. ""We are delighted to be working with Magex and see this alliance as an important part of the process of delivering a comprehensive system for users of music on the internet,"" said Gary Ludlow, Vice President and General Manager, Americas, of AudioSoft. ""Magexís secure distribution product complements AudioSoftís copyright reporting systems, and in combination they will offer more integrated and complete solutions for rightsí holders and music users alike."" During the third and fourth quarters of 2000, AudioSoft and Magex will work together to implement AudioSoftís technology within Magexí systems. AudioSoftís technology will allow Magexí customers to provide more accurate and timely copyright usage information to copyright collection societies and music labels on a worldwide basis. This information is essential to the proper allocation and payment of royalties to each countryís copyright collection societies, and ultimately to the music producers they represent. About MagexMagex 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 the security and payment problems surrounding digital distribution, enabling fast, safe and easy Web transactions. Incorporating Digital Rights Management from U.S. partner, 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. CSFB have estimated the market for the delivery of digital content, such as music or video, over the Internet at some $27 billion of the total $275 billion digital content market by 2003. Magex recently raised $80 million in equity funding. Major shareholders are Goldman Sachs, Capital Z Financial Services, 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. For more information about Magex, visit www.magex.com. About AudioSoft AudioSoft is the worldwide leader in global copyright management for music on the Internet, helping to assure accurate royalty redistribution to music copyright holders. The company's copyright and data reporting system captures, organizes and delivers information about music usage on the Internet. A trusted third-party information source, AudioSoft provides accurate, real-time feedback and customized reports for labels, copyright collection societies, online music retailers and audio Webcasters to automate the management of copyrights generated on the Internet and provide market feedback and analysis. The company's data gathering architecture is designed to be compatible with all popular digital music file formats and major industry platforms. Founded in 1996, with corporate headquarters in San Francisco, California and European headquarters in Geneva, Switzerland, AudioSoft is a respected international authority on digital music rights. Additional information about the Company may be obtained on its Web site at www.audiosoft.com.

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http://www.audiosoft.com
http://www.magex.com