FullAudio Chooses Microsoft Windows Media For Digital Music Subscription Platform

REDMOND, Wash., and CHICAGO, Feb. 11, 2002 — Microsoft Corp. and FullAudio Corp. announced that FullAudio has chosen Microsoft® Windows Media™
as the digital media technology for its digital music subscription platform. FullAudio, which distributes its music subscription platform through partners such as Clear Channel Communications, relies on Windows Media Audio and Digital Rights Management (DRM) to deliver online access to more than 70,000 licensed music tracks.

FullAudio is offering
“powered by FullAudio”
digital music services for 30 Clear Channel stations in Chicago, Houston, Los Angeles, Phoenix and Salt Lake City. Clear Channel will officially launch and distribute FullAudio-based music services to consumers in March; the service also will be promoted on WindowsMedia.com. FullAudio licenses content from Universal Music Group, EMI Recorded Music, EMI Music Publishing, Universal Music Publishing Group and BMG Music Publishing, and is negotiating with many major and independent record labels and publishers. FullAudio intends eventually to distribute more than 1 million licensed music tracks.

“Working with Microsoft and building our service on its digital media technology enables us to deliver a convenient, secure music subscription platform that strongly supports our distribution partners,”
said Chris Copeland Gladwin, chairman and CEO of FullAudio.
“I am confident that the proven performance of Windows Media will play a key role in FullAudios success.”

“By focusing on providing such a large number of tracks and delivering high audio quality, FullAudios pioneering service will be a big hit with music fans,”
said Dave Fester, general manager of the Windows Digital Media Division at Microsoft.

FullAudio Cache-Download Technology

FullAudios patent-pending solution provides the companys distribution partners with a higher-quality music experience for their customers than streaming-only music services that are or will soon be on the market. FullAudios music service offers partners two distinct advantages over streaming providers. First, unlike the audio quality of streamed music, which can be limited by the speed of a users Internet connection, FullAudio delivers high sound quality regardless of connection speed. Second, FullAudio enables its partners customers to play tracks on their PC when theyre not connected to the Internet.

FullAudio has licenses to extend digital music to portable devices and is compatible with consumer products that incorporate secure system clocks supporting DRM. This eventually will enable consumers to download songs from FullAudio to portable digital audio players and other mobile devices.

FullAudio Subscription Service Platform

FullAudio is creating a subscription service platform that allows distribution partners to build the engine for their own co-branded consumer digital music services. For a monthly fee, the FullAudio subscription platform enables distribution partners to provide consumers with unlimited play of a set number of chosen tracks (or subscription
). Much like subscription models for cable television, FullAudios platform enables distribution partners to offer varying levels of subscription service, providing consumers with pricing options based on the amount of music they want to access.

About FullAudio

FullAudio Corp. is a digital service provider offering distribution partners a platform for the digital distribution of intellectual-property content. The companys first offering, a digital music distribution service, works with the music industry, artists and songwriters to create a legal and secure means to distribute music to consumers. Delivering diverse content from the industrys leading record labels and other music resources, FullAudio enables partners to provide a personal service that allows listeners to discover new music, create their own collections, and listen to digital music on PCs and a range of portable devices.

Founded in April 1999, FullAudios advisors and investors include Larry Rosen, both founder and CEO of N2K, the company behind Music Boulevard, and co-founder and CEO of GRP records; Joel Schoenfeld, former general counsel and senior vice president of BMG Entertainment; Randy Komisar, who helped launch both TiVo and WebTV® ; Kettle Partners; New Enterprise Associates; and Venture Strategy Partners. More on the company can be found at http://www.fullaudio.com/ .

About Windows Media

Windows Media is the leading digital media platform, providing unmatched audio and video quality to consumers, content providers, solution providers, software developers and corporations. Windows Media offers the industrys only integrated digital rights management solution and the most scalable and reliable streaming technology tested by independent labs. Windows Media Technologies includes Windows Media Player for consumers, Windows Media Services for servers, Windows Media Tools for content creation and the Windows Media Software Development Kit (SDK) for software developers. Windows Media Player, available in 26 languages, is the fastest-growing and now leading media player. More information about Windows Media can be found at http://www.microsoft.com/windowsmedia/ .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies 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.

Microsoft, Windows Media and WebTV 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 Web page at http://www.microsoft.com/presspass/ on Microsofts corporate information pages.

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