PRESS RELEASE
FOR IMMEDIATE RELEASE

October 9, 2004
Berkeley, California

To commemorate a successful first year, Berkeley-based Internet record label Magnatune www.magnatune.com is sponsoring a free online album giveaway. Anyone who has previously purchased music on Magnatune will be able to select and download an album of their choice, including newly released works from internationally renowned Eastern European vocal group Kitka or Early Music innovators American Baroque Orchestra. "We wanted to express our appreciation to customers for their support," explains John Buckman, founder and CEO of Magnatune "and give everyone the opportunity to try new music."

An email was sent October 9th, 2004, to all who bought an album at Magnatune since it was founded. Users needed to have given their email address to Magnatune in order to be eligible for the free album download promotion.

The record label is on the vanguard of a new approach to music distribution. Online music services such Magnatune and iTunes are leading the way in what has become one of the best and most direct ways to acquire music. With improved MP3 technology the quality of a downloaded album equals that of a CD. In addition, Magnatune provides several different download options to accommodate different formats, including a perfect-quality duplicate of the master CD in "wav" format.

Over the last year, Magnatune has experienced phenomenal growth. The label has already signed 173 artists and released over 300 albums. The business has continued to rapidly expand and grow and attract wide ranging attention. Site visitor statistics also prove out that the "try-before-you-buy" business model is working. "1 out of 30 people who visit the Magnatune web site, buy an album. This is among the highest conversion rations on the Internet, where rates of 200:1 is more common" reports Buckman. "We think this is a sure sign that Magnatune offers something very compelling." Magnatune also offers 6 Internet radio stations, which are available via the Shoutcast network on iTunes, AOL and Netscape Radio. "The average listener spends 3 hours and 20 minutes on our classical radio station, which is an incredible commitment of time by the listener, but also an endorsement of the quality of our music" reports Buckman.

The ensemble American Baroque was one of the first artists to sign up with the label. "Magnatune offers a fair deal" enthuses Gonzalo Ruiz, one of the founders of the orchestra "This is the new business model for musicians and we wanted to be part of it. Magnatune also has an adventurous and contemporary attitude toward the music and business. American Baroque has the same philosophy with its approach to classical music, so this is a very good match for us."

While Buckman brings his technological savvy to the enterprise, as a musician himself, he is dedicated to making diverse and unique musical genres and artists available to a widespread audience. "It's a true passion for the music that guides which artists and songs are signed to the label," says Buckman "Each submission is reviewed and chosen after careful consideration: we average about 5 accepted albums per 300 monthly submissions."

Magnatune's roster includes Electronica, Metal, New Age, Rock and World albums and it's best selling musical genre, Classical. Visitors to the website can listen to all music before buying. The open music approach works for customers, many of who have taken the time to email feedback. "The music is so varied and of such good quality, I can enjoy streaming tracks for whatever suits my mood," commented one customer, "I can also explore new kinds of music that I would otherwise not hear".

The giveaway is a thank you to Magnatune customers, who have been very supportive of the music and its unique business model. Remarking on the Magnatune's alternative approach, another customer was enthusiastic about the label providing "opportunities for 'the little guy' to break away from monolithic corporate bodies that aren't interested in what they are creating, only how its lining their pockets." Fans are so keen on the label that many have donated money outright to Magnatune in support of its continued success.

"It was our vision to provide artists an alternative to the traditional corporate approach of the music industry," notes Buckman "so we have taken a much different approach." In addition to sharing profits, the artists also keep the rights to their music. This is unusual in the recording industry, where most musicians who are signed with the large labels reap only a fraction of the profits from the music that is sold.

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Magnatune was formed in May of 2003 in Berkeley, California and is a growing internet record label where musicians can showcase and sell their own work. Music is available for listening or purchase in a variety of high quality formats, and the price range paid for the music is set by the buyer. The company takes its motto "we are not evil" seriously. To that end the purchase price is shared 50/50 with artists and Magnatune artists keep the rights to their music.