MediaBay and Microsoft Announce Launch of Unique Affiliate Program for Spoken Word Content

REDMOND, Wash., and MORRISTOWN, N.J., Feb. 22, 2000 — Microsoft Corp. (Nasdaq
“MSFT”
) and MediaBay Inc. (Nasdaq
“MBAY” ) today announced that MediaBay has chosen Microsoft® Windows Media TM as the digital media technology for an innovative affiliate program that will allow participating Web sites to offer high-quality audio streams from such classic radio shows as
“The Jack Benny Program,” “The Abbott and Costello Show,” “War of the Worlds”
and
“Suspense.”
MediaBay chose Windows Media because of clear customer preference. On MediaBay sites where streaming content is offered in both Real and Windows Media formats, customers are choosing Windows Media streams more than two-thirds of the time.

Web sites participating in the new Content Affiliate Program will place a graphic control panel on their pages that will link to classic radio content updated daily by MediaBay. Visitors to the affiliate sites will be able to access audio streams of classic programs directly from the control panel. Visitors will also be able to click through to buy related products from MediaBay.com, generating commissions for the referring Web site.

MediaBay Web sites, including MediaBay.com and Audiobookclub.com, specialize in old-time radio, audio books and classic movies, using streaming technology to enhance sales of tapes, CDs, VHS tapes and digital downloads. Affiliate partners will be able to offer their visitors free, high-demand audio content without any additional investment, and they will receive a commission on any sales generated from their referrals to MediaBay.com.

“We believe the combined Content and Commerce Affiliate Program is unique and will dramatically increase the branding of MediaBay.com,”
said Michael Herrick, MediaBay CEO.
“Using Windows Media as the format was a natural choice, based on customer preference and the tremendous results we have had so far with Windows Media and Microsoft’s content guide, WindowsMedia.com.”

As a Windows Media content provider, MediaBay is listed at WindowsMedia.com ( http://www.windowsmedia.com ), the MSN TM guide to audio and video content on the Internet. From its free listing on the WindowsMedia.com radio page, MediaBay is gaining referrals of more than 5,000 unique customers per day, which is equivalent to more than 1 million free banner impressions with a standard click-through rate of one-half percent.

“We are pleased that MediaBay.com selected Windows Media for its new affiliate program,”
said Dave Fester, director of marketing, Digital Media Division, Microsoft.
“Together with Windows Media, MediaBay reaches into the past and brings classic radio, film and television content for a new medium and a new audience.”

About MediaBay Inc.

MediaBay Inc. is a leading provider of premium spoken word audio content and products in hard goods and digital download formats both online and offline which it markets to its customer database of over 2.3 million names and more than 1.5 million unique Web site visitors. MediaBay Inc. is one of the world’s largest marketers of audio books through its Audio Book Club membership club, which markets and sells over 70,000 audio book titles through direct mail and the Internet at www.audiobookclub.com. MediaBay Inc. is also one of the world’s largest marketers of old-time radio shows and classic videos through its Radio Spirits subsidiary, which markets and sells its content library of over 60,000 radio shows and 3,500 videos on audio cassette, compact disc and video cassette through direct mail, retail and radio channels, as well as through the Internet at www.MediaBay.com. MediaBay.com, the company’s media portal site, is an innovative content and e-commerce Web site offering the company’s millions of customers and Web site visitors a single location for premium spoken word content and products available in hard goods and secure digital download formats.

About Windows Media Technologies

Windows Media Technologies is the leading digital media platform, providing consumers, content providers, solution providers, software developers and corporations with unmatched audio and video quality. Windows Media Technologies 4, which includes Windows Media Player, Windows Media Services, Windows Media Tools and the Windows Media SDK, is available for free* download at http://www.microsoft.com/windows/windowsmedia/ . The Windows Media Player is the fastest growing media player. More than 50 million copies have been downloaded to date – growing by more than one every second.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
“MSFT”
) is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

* Connect-time charges may apply.

Microsoft, Windows Media and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft home page at http://microsoft.com/presspass/ on Microsoft’s corporate information pages.

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