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Napster Contact: Dana Harris (917) 342-6940 dana.harris@napster.com Investor Contact: Alex Wellins The Blueshirt Group, for Napster (415) 217-7722
NAPSTER SELLS 5 MILLION DOWNLOADS
New Service is Number One in Music Downloads for PC-Only Stores LOS ANGELES, CA - (February 23, 2004) — Napster®, a division of Roxio (Nasdaq: ROXI), today announced that it has recently become the first PC-only digital music service to sell over five million downloads. The Company also announced that it has served hundreds of millions of page views since its late-October launch and has attracted over 1.5 million basic and premium members. Napster, which generates multiple revenue streams from a unique combination of single and album downloads, prepaid download cards, premium subscriptions and the licensing of its popular brand, is expected to generate at least $20 million in music sales in its first year. "This important milestone is a testament to the quality of the Napster experience and the strength and continuity of our senior management team, which is comprised of nearly all the same music industry professionals that have led the company for years," said Chris Gorog, Napster's CEO. "In this competitive market, Napster is defining itself as an immersive experience that enables members to legally explore and access the largest catalog of music available, experience the largest number of features and choose from 60 compatible digital music players, creating a very compelling offering for music fans." In addition to individual album and song downloads, Napster is capitalizing on its diverse revenue opportunities. Napster is the only service selected by universities to provide students with easy access to digital music. Its implementation at Pennsylvania State University was the first of its kind and, having recently announced a second licensing agreement with The University of Rochester, Napster is currently in negotiations with a number of other institutions across the country that are interested in participating in this unique program. The Company also plans to expand licensing programs for the Napster brand, which is the most recognized brand in online music according to research by Piper Jaffray. Napster has already announced major partnerships with global companies such as Samsung and Miller Brewing, brought co-branded products to mass retailers like Target and successfully rolled out the prepaid Napster download card to over 26,000 retail locations. About Napster Napster®, the world's most recognized brand in online music, enables fans to freely sample the world's largest and most diverse online collection of music, featuring over half a million songs. The revolutionary, easy-to-use interface allows users to quickly and easily download tracks, transfer songs to portable devices or burn them to CDs for just 99 cents per track or $9.95 per album. In addition to the free online magazine, Billboard charts, music videos, song clips and the ability to email tracks to friends and browse other members' collections, serious music fans have the added option to upgrade to a premium service that offers unlimited listening and downloading, over 50 commercial-free radio stations and a collection of interactive play lists and community features, all for just $9.95 a month. Napster is a division of Roxio, Inc., (Nasdaq: ROXI), the Digital Media Company, provider of the best-selling digital media software in the world. Safe Harbor Statement Except for historical information, the matters discussed in this press release, in particular matters related to the success of the Napster service, future revenue, demand for our service from universities and relationships with certain corporate partners including marketing partners and hardware and software manufacturers are forward-looking statements that are subject to certain risks and uncertainties such as decreased demand for our products, increased competition, failure to maintain business relationships with our partners and general economic conditions, that could cause actual results to differ materially from those projected. Additional information on these and other factors are contained in Roxio's reports filed with the Securities and Exchange Commission (SEC), including the Company's Quarterly Report on Form 10-Q as filed with the SEC on February 17, 2004, copies of which are available at the website maintained by the SEC at http://www.sec.gov. Roxio assumes no obligation to update the forward-looking statements included in this press release. Copyright © 2004 Roxio, Inc. All rights reserved. Roxio, the Roxio tagline and Napster are either trademarks or registered trademarks of Roxio, Inc. or its subsidiaries in the United States and/or other countries. All other trademarks used are owned by their respective owners.
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