eMusic - World's Largest Digital Retailer of Independent Music - Begins

Reporting Download Sales to SoundScan

eMusic Now Sells More Than 4.5 Million Downloads Monthly - and Has Sold 45

Million Downloads in the Past 2 Years

eMusic/SoundScan Data Expected to Present More Accurate Picture of Online

Music Sales

NEW YORK, Jan. 23 /PRNewswire/ -- eMusic, the world's largest digital
retailer of independent music, selling more than 4.5 million downloads
monthly, announced that, effective today, its sales figures are being
reported to Nielsen SoundScan, the information system that tracks
sales of music and music video products throughout the United States
and Canada. By reporting these new data, eMusic will reveal a more
precise picture of digital music market sales to SoundScan, which has
been severely undercounting the burgeoning independent music sector to
date.

"The independent music sector is enjoying spectacular growth while
overall recorded music sales from major labels continue to decline,
and yet many in the music industry treat the independent music market
as an afterthought. We're certain that independent music market share
has been inaccurately reported," said David Pakman, CEO of eMusic and
a managing director of Dimensional Associates, the private equity arm
of JDS Capital that owns eMusic, The Orchard and Dimensional Music
Publishing. "The strong growth of the independent sector can be
attributed to the efforts of businesses like eMusic which have
invested millions of dollars to promote and carefully merchandise
music outside the mainstream top 40. By reporting our sales data to
SoundScan, macro digital music sales figures will shift, reflecting a
dramatic increase in independent music market share."

eMusic is now second only to iTunes in monthly download sales-even
though its entire one million-track catalogue is comprised entirely of
music from independent labels. Over the past 24 months, eMusic has
sold more than 45 million tracks-this represents more music sold by
other major music services like Rhapsody, Microsoft's MSN, Yahoo!, and
Napster COMBINED*. This accomplishment is that much more remarkable
because eMusic has no major label content in its service-only tracks
from 3800 of the world's largest independent record labels including:
Rykodisc, TVT, Concord Music Group, Naxos, Beggars Banquet, KOCH
Records, Epitaph, Comedy Central Records, Smithsonian Folkways,
Dischord, Merge, Razor and Tie and Sun Records.

*Data refers to non-expiring digital downloads-not rental songs or
streams-and is based on estimates provided by aggregators, published
reports, SEC filings, company press releases, and market share data.
Not all mentioned music services report sales figures publicly.

About eMusic

eMusic (http://www.emusic.com) stands alone as the only digital music
service that is 100% focused on serving the needs of independent music
fans and independent labels. Delivering more than 4.5 million
downloads each month; eMusic is among the top digital music services,
offering a diverse catalogue of 1,000,000 tracks from established and
emerging artists in every genre from the world's top independent
labels. eMusic was not only the first service to sell songs and albums
in the popular MP3 format, it was the first company to launch a
digital music subscription service. Unlike other services that
severely restrict portability, eMusic allows members complete
flexibility to burn CDs, transfer to MP3 devices and make multiple
copies for personal use. eMusic also offers access to exclusive
recordings from eMusicLive's network of premier music venues across
the country. Based in New York and San Diego, eMusic is wholly owned
by Dimensional Associates, Inc., the private equity arm of JDS Capital
Management, Inc.

NOTE: eMusic is a registered trademark and eMusic.com is a trademark
of eMusic.com Inc. All other trademarks are the property of their
respective owners.

Media Contacts

Andy Morris / Justin Kazmark

The Morris + King Company

(212) 561-7465 / (212) 561-7466

andy.morris@morris-king.com

justin.kazmark@morris-king.com SOURCE eMusic