BeCG licenses Napster's technology platform for global music services company BeMusic / BeMusic using Napster's new secure technology to focus on eCommerce, sub

New York, NY and Redwood City, CA (PROTEXT/ots) - BertelsmanneCommerce Group (BeCG) announced today the completion of atechnology licensing and distribution agreement with Napster Inc.The agreement calls for Napster's new secure technology, absentNapster's peer-to-peer functionality, to be used as a corebuilding block for BeMusic. It will also give Napster's platformadded distribution through the new BeMusic service. With over 23million subscribers and customers, BeMusic's online and offlinemusic and entertainment service consists of CDNOW, the leadingInternet-based music retailer; BMG Direct, home of BMG MusicService, the largest record club business in North America; andmyplay Inc., the pioneering digital music locker company. "Napster's platform has been tested by millions of music fansand the Napster technology is trusted as dependable and easy touse," said Andreas Schmidt, President and CEO of BeCG. "The newsecure version of the technology has incorporated feedback fromthe Napster community as well as the rightsholders. BeMusic willuse this platform to build an easy-to-use, new service thatoffers the best in e-commerce, subscription services and clubmemberships, driving future sales and encouraging the adoption ofsecure digital music delivery." "Napster is pleased that BeCG has licensed Napster'stechnology for their BeMusic service and we look forward to theadded distribution this partnership affords us," said KonradHilbers, CEO of Napster Inc. "We have worked hard to incorporatefeedback from Napster users to create a new Napster platform thatreflects our goal to serve both consumers and rightsholders. Weare also very gratified to see the results of the Napster team'shard work becoming the basis for other consumer services andmoving out into the world. We look forward to showcasing this newplatform in our upcoming membership based service." The new secure version of the Napster platform licensed byBeCG reflects Napster's knowledge of the music consumer. UsingNapster's technology, BeMusic's subscribers will have access to aservice with the greatest ease-of-use of any available on themarket while protecting rightsholder's copyrights with state-of-the-art security technology. The underlying architecture, which does not include Napster'speer-to-peer functionality, will be used as a platform on whichthe BeMusic suite of brands and services will be built.BeMusic's 23 million subscribers and customers will benefit fromNapster's platform in creating a robust service that encompassesnew features such as instant messaging, hot lists, chat features,search functionality and playlist and music library retrievalcapabilities; all of which can be dynamically presented based onpersonal user preferences. These features will be integrated intoBeMusic's offerings that include direct download, streaming,digital locker services, club memberships, subscription servicesand online retail. About BeMusic BeMusic is the world's largest music services group with morethan 23 million subscribers and customers, $1 billion in musicsales, and has 11 million unique visitors per month worldwide.Headquartered in New York City, BeMusic operates some of theworld's best-known music brands, including BMG Music Service, theworld's largest music club; CDNOW, the leading music retailer onthe Internet in the U.S; industry-leading technology and DigitalRights Management companies; and myplay Inc., the pioneeringdigital music locker service. BeMusic is focused on creating theone-stop shop for today's and tomorrow's consumer, covering thecomplete spectrum of how people buy and enjoy music. BeMusicdelivers music through any possible channel, including music clubpurchasing, e-tailing, digital downloads and streaming, anddigital subscriptions services. Formed in July 2001, BeMusic alsoholds a strategic alliance with Napster, the worldwide person-to-person music file-sharing service with more than 60 millionregistered users. About BeCG Bertelsmann eCommerce Group was formed in July 2000 as adivision of Bertelsmann AG. The objective of the group is tointegrate all forms of digital and physical distribution over theinternet, broadband and mobile networks for all media content.Headquartered in New York, BeCG operates various businesses inEurope and the United States. BeCG is part of Direct GroupBertelsmann. Bertelsmann has access to over 200 million customersworldwide. About Napster Founded in May 1999, Napster, Inc. pioneered person-to-personfile sharing and created one of the most frequently downloadedsoftware applications in the history of the Internet. Napsterprovides music enthusiasts with an easy-to-use, high qualityservice for discovering new music and communicating theirinterests with other members of the Napster community. Theservice enables users to locate and share music files, sendinstant messages to other users, and create Hot List bookmarks.In October 2000, Napster partnered with Bertelsmann eCommerceGroup to develop a membership-based service. Edel Music and TVTRecords joined the alliance in January 2001. In June 2001,Napster became a MusicNet partner and signed a landmarkdistribution deal with the Association of Independent Music (AIM)and the Independent Music Companies Association (IMPALA), twoorganizations that represent hundreds of European independentrecord labels. In September, 2001, Napster signed a landmarkaccord with the National Music Publishers Association (NMPA) fora proposed licensing and settlement agreement. ots Original TextService: Bertelsmann eCommerce Group Internet:http://www.presseportal.de Contact: For BeMusic/BeCG:Alexander Adler Director, Corporate Communications Fon: +49 (40)822262 320 Alexander.Adler@becg.com For Napster: mPRm PublicRelations Paul Breton / Karen DeMarco Fon: +1 (323) 9333399pbreton@mprm.com / kdemarco@mprm.com

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