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Napster Grabs AOL Music Exclusive

January 15, 2007

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Napster will be the exclusive music subscription provider for AOL Music in a deal announced Friday, a development that spells the end of a relationship with Music Now.

Napster will inherit approximately 350,000 subscribers from Music Now, who are being notified of the switch by email.

“We are pleased to provide our subscribers the opportunity to seamlessly transition to Napster, which will become the only music subscription service integrated into AOL Music,” said Mike Rich, vice president of AOL Entertainment.

The departure of Music Now follows the disintegration of Virgin Digital in the United States, a casualty of tepid consumer demand and executive turmoil. Napster has acquired the stable of subscribers from both providers, bolstering its customer base.

“This transaction firmly positions Napster to be the unequivocal global leader in the premium music subscription sector and the number two overall in digital music revenue,” said Chris Gorog, chairman and CEO of Napster. Music Now was originally purchased from Circuit City in November of 2005, though the property lived a short life within the AOL family.

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