PRESS RELEASE
FOR IMMEDIATE RELEASE

October 7, 2004
Berkeley, California

Internet record label Magnatune is introducing a new service offering physical CD recordings of all music albums through its web site at www.magnatune.com. Beginning October 7, 2004. The label will now offer perfect-quality albums in both downloadable and physical audio CD format on demand. Previously, Magnatune offered its music in download-only format.

Magnatune is introducing the CD service in recognition of customer needs. Entertainment Media Research recently conducted a landmark survey in which 80% of respondents said they would continue to purchase as many or more CDs as they had before using legal music download services. Recognizing clear consumer preferences, Magnatune founder and CEO John Buckman was quick to move the company to respond. "It seems people who download music often prefer to purchase CDs online, so we wanted to recognize that fact and make it easy for customers to access Magnatune's music in whatever format they prefer" reported Buckman.

Current MP3 download limitations make the process of aqiuiring music online cumbersome for some consumers. Magnatune already has flexible formats from hi-fi to lo-fi to accommodate customer preferences but providing physical CDs is yet one more way to cover contingencies. "Online download technology isn't quite there yet in terms of instant download, and customers are nervous about it in the same way they were nervous about using credit cards online 3 years ago. We want to bridge the technical gap by offering to burn CDs and mail the albums on request. The most important thing is to get the music to our customers" emphasized Buckman.

The deal is still good since Magnatune adds only a minimal charge to the regular price of a download. A surcharge of $4.97 in US dollars or $7.97 outside of the USA is added to cover the cost of the download burn, the CD, and postage. The regular price of a download can range from $5-18 and is determined by the customer. Thus, a typical CD costs $12.97 delivered in the USA.

Magnatune is unique in that it allows customers to choose the base value of an album as well as providing visitors to the site a complete "listen before you buy" option. Buckman explained "One of our primary goals in forming Magnatune was to give a fair deal to both artists and customers. Allowing customers to listen to albums in their entirety, and then set the value of that album is a really direct way to achieve this." The website has now added a straightforward "order a physical CD" option in addition to the download options previously in place.

All Magnatune albums may be purchased as physical CDs. "We currently have 173 artists, 322 albums, and 4151 songs on the label" says Buckman. "And we are adding more all the time." Many genres are covered including Classical, Electronica, Metal, New Age, Rock and World. The Magnatune music catalog is also available for license for commercial use. Common types of licenses are used for film score or advertising music.

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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.