EDMONDS, Wash., Feb. 24, 2005 (PRIMEZONE) -- On February 23, 2005, certain business news wires reported that NetMusic Entertainment Corporation (Pink Sheets:NTMT) was in direct contract and/or negotiations with the four major recording labels. This is untrue and a misrepresentation of the facts as they were stated by NetMusic Entertainment Corporation.
On Tuesday, February 22, 2005, NetMusic announced that company was finalizing agreements with "third parties," wherein, upon successful conclusion, NetMusic would gain all of the digital music archives of: EMI (www.emigroup.com), Sony BMG (www.sonybmg.com), Universal Music Group (www.universalmusic.com), and Warner Music Group (www.wmg.com) and would become the largest Digital Music Catalogue in the world when combined with the archives of NetMusic.com (www.netmusic.com) and that of its wholly owned subsidiary of Audio Lunchbox (www.audiolunchbox.com).
The announcement was made to explain the company's election to change its efforts of obtaining contracts directly from the major recording companies to working with third parties who, in the company's opinion, possess a better opportunity to be quicker to market with this content.
NetMusic has always recognized the value of this content and has long stated its intent to become able to provide these offerings to the company's consumers. The company also respects the owners of this content and their rights to direct how it is distributed. As such, NetMusic announced its intention to engage a third party with the expertise to meet all of the necessary requirements set forth by the owners of the content.
About NetMusic:
Edmonds, Washington-based NetMusic (http://www.netmusic.com) is a global digital media company focused on providing consumers entertainment on their own terms: anytime, anywhere. The company offers digital music downloads, digital jukeboxes, video-on-demand and online video rental services across the globe. NetMusic also offers the largest online collection of independent music in the world -- a licensed catalog of over one million tracks, incorporating 4000 plus labels. Investors interested in obtaining more information about the company are invited to visit: (http://www.netmusic.com/corp/).
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although NetMusic Entertainment Corporation believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by NetMusic Entertainment Corporation or any other person that the objective and plans of NetMusic Entertainment Corporation will be achieved.