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NAPSTER AND IMATION ANNOUNCE STRATEGIC LICENSE AGREEMENT TO BRING NAPSTER-BRANDED OPTICAL MEDIA PRODUCTS TO MARKET
LAS VEGAS (January 7, 2004) - Napster, the most recognized brand in digital music, a division of Roxio, (Nasdaq: ROXI), and Imation Corp. (NYSE: IMN), a worldwide leader in removable data storage media, today announced a strategic license agreement that establishes Imation as the exclusive distributor of Napster-branded optical media products in North America. In addition to the exclusive distribution agreement, Imation will also provide sales, marketing and distribution services for Napster-branded blank CD and DVD products. This partnership leverages Imation’s reputation as an industry leader in optical media development, manufacturing, distribution, marketing expertise and customer knowledge to build the market for Napster-branded CD and DVD media products. CD-R sales growth continues to be driven primarily by audio applications. According to Wolfgang Schlicting, research director, removable storage for IDC, "The increasing popularity of affordable and easy to use legitimate download services are expected to both increase the demand for CD media and expand the market to a wider range of online users." And Jupiter Research estimates that online digital music services will become a $1.5 billion dollar market by 2008. "This partnership combines Imation’s technology leadership, efficient supply chain expertise and industry-leading distribution capabilities with Napster’s premium online music and services to deliver the ultimate digital music experience to the consumer," said Dave Ferraresi, vice president and general manager, Imation’s Personal Storage Media business. "Imation is committed to delivering the broadest portfolio of removable data storage media to the market, and adding the Napster-branded optical media to our portfolio is a testament to our commitment to investing in opportunities that grow our core removable media business and deliver long-term benefits to our consumers." "Napster is committed to offering consumers the ability to discover and acquire music in whatever way they choose, whether it is unlimited listening to the largest online music catalog or simply purchasing individual tracks and albums," said Mike Bebel, president and COO of Napster. "Many people choose to place their music on optical media like the popular CD-R, so our partnership with Imation, the leading supplier of such media, is a logical extension of Napster’s brand and goals - put simply, Napster blank media from Imation is a great place to burn your Napster content." For more information, please visit www.imation.com, or www.napster.com. About Imation Imation Corp. is a leading developer, manufacturer and supplier of magnetic and optical removable data storage media. With one of the broadest product lines in the industry-spanning from a few megabytes to hundreds of gigabytes of capacity in each piece of media, Imation serves customers in more than 60 countries, in both business and consumer markets. With more than 300 technology scientists and more than 300 data storage patents in the U.S. alone, Imation continues to pioneer today's proven magnetic and optical media technologies. As of September 2003, Imation employed approximately 2,800 people worldwide. Revenues from outside the U.S. contribute approximately 53 percent of total sales. Additional information about Imation is available on the company’s website at www.imation.com, or by calling 1.888.466.3456. About Napster Napster® is the world’s most recognized brand in online music. Napster has content agreements with the five major record labels, as well as hundreds of independents. Napster delivers access to the largest catalog of online music with more than 500,000 tracks spanning all genres and artists from Eminem to Miles Davis. Napster is a division of Roxio, Inc., (Nasdaq: ROXI), the Digital Media Company, provider of the best-selling digital media software in the world. Napster has offices in Los Angeles and New York.
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