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NAPSTER AND DIXONS GROUP SIGN FIRST EVER PARTNERSHIP BETWEEN ONLINE MUSIC PROVIDER AND MAJOR UK CONSUMER ELECTRONICS RETAILER

Dixons, PC World, The Link and Currys to exclusively promote Napster products through 1,100 stores


LONDON - (May 6, 2004) - Napster® UK, Ltd. a subsidiary of Roxio, Inc. (Nasdaq: ROXI), has announced a major multi-year partnership with Dixons Group plc, Europe’s leading consumer electronics goods retailer. Under the terms of the agreement, Dixons Group will promote the soon-to-launch Napster music service and stock Napster music software and Napster branded products across its chain of 1,100 Dixons, PC World, The Link and Currys stores in the UK. This is the first agreement of its kind between a British consumer electronics retailer and an online music provider and follows Napster’s announcement at the start of March to bring the world’s most recognised brand in online music to the UK before the end of the summer.

As Napster’s exclusive UK electronics retail partner, Dixons Group will offer UK consumers Napster 2.0 software preloaded on all own brand PCs (Advent, Ei System, and Patriot) together with a unique offer for a Napster Premium service subscription. As Dixons Group’s sole provider of downloadable and subscription-based music, Napster will be promoted throughout its stores - including promotional areas in the portable audio sections, and branded promotional end caps featuring Napster branded blank CDRs, CD wallets, and CD labelling kits - as well as on its transactional websites.

"This is an extremely important deal for Napster in the UK and represents a significant development in the evolution of the UK music market," said Napster president Brad Duea. "Dixons Group is the market leader in consumer electronics and the fact it has chosen to align itself exclusively with Napster illustrates the value of the service we’re bringing to the UK. We are impressed with Dixons Group’s track record for driving the market for subscription and online services in the UK, such as Freeserve (now Wanadoo) and AOL."

"The market for online music in the UK has huge potential and we will drive this new development by demystifying the subscription options for consumers," said John Clare, Dixons Group chief executive. "The combination of Napster’s services and communities and Dixons Group’s retailing skills will create an unrivalled digital music experience for our customers."

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