eMUSIC SALES SURPASS 150 MILLION DOWNLOADS

NEW YORK, Aug. 16, 2007 -- eMusic, the world's largest retailer of independent music and the second-largest digital music service after iTunes, today announced that it has sold more than 150 million downloads – less than nine months after the company notched its 100 millionth download in December 2006. The milestone demonstrates continued momentum for eMusic, which hit 50 million downloads about 26 months after establishing the current subscription model in 2003 and 100 million downloads just 11 months later. The company is now selling about six million tracks a month.

"Even as research shows that overall paid download growth is slowing, eMusic continues to attract new customers and sell more music,” said eMusic President and CEO David Pakman. "We've done this through our longstanding commitment to providing content in the universally compatible MP3 format at a great value and by super-serving our customer base: music fans over the age of 25 who are interested in what's happening outside the mainstream. Our model has proven that consumers respond to this approach by buying more music — and our customers buy more music than those of any other online music service, period.”

eMusic helps independent labels by adding incremental sales, particularly for deep catalogue and lesser-known artists. Approximately 67% of its 2.8 million-track catalogue sells at least once per quarter. Recent surveys* of eMusic customers found that 61% buy music from the website that they would not have otherwise purchased, and 84% felt they discovered music they would not otherwise have known about. When asked, "How many more digital songs do you purchase each MONTH now compared to before you joined eMusic,” 14% said they download between and 10 and 25 additional songs, 25% said they download between 26 and 50 additional songs, and 23% said they download more than 50 songs.

eMusic is a subscription music service offering the serious music fan a place to find the best music outside the commercial mainstream in all genres, including indie rock, classical and jazz. With deep relationships with the world's top independent labels, guidance from the best music editorial experts and a passionate music community, eMusic caters to music fans aged 25+. It provides all tracks in the universally compatible MP3 format at prices as low as 27 cents (17p/ 23c) a track.

About eMusic
eMusic (http://www.emusic.com) is the world's leading digital retailer of independent music, second only to iTunes in number of downloads sold. The eMusic Web site offers a global catalogue of more than 2.8 million tracks from established and emerging artists in every genre from 20,000 of the world's leading independent labels. Created by music experts for music fans, it features award-winning editorial content, a vibrant online community and unrivaled music discovery tools. A subscription-based service that offers 25 free downloads at sign-up, eMusic gives consumers an inexpensive, low-risk way to explore great new music they wouldn't find otherwise, and unlike other download services, its universally compatible MP3 files play on any device including the iPod®. Based in New York with an office in London, eMusic.com Inc. is wholly owned by Dimensional Associates, Inc., the private equity arm of JDS Capital Management, Inc.

*Survey results are based on samples of more than 4,000 eMusic subscribers. Surveys were conducted April 26 - 27 and May 15-16, 2007. The margin of error is plus or minus 2 percentage points.

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.