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Next Generation of Audio Storage Arrives With New LP

Set to launch this fall, the new product, called the License Plate(TM) or LP, is a new and improved form of content storage that is about the size and shape of a silver dollar. Leading independent label TVT Records is lending support to the format with five titles being released as LPs, two of which are gold and another platinum. I-Jam has signed an agreement with Christian label, Word Records, to market its artists' albums that have been recorded onto this new format of secure digital music. Random House Entertainment has also agreed to market its best-selling digital audio books. Additionally, I-Jam's spoken audio partner, Media Bay, Inc. (Nasdaq: MBAY), will contribute content from its extensive library of spoken audio for this new, secure format of distribution.

``This is an important milestone in the recording industry,'' said Doug Marrison, President and CEO of I-Jam Multimedia. ``The decision by multiple music leaders to embrace technology by supporting this new format is truly significant. Just as cassette tapes and compact discs were improvements on the storage formats before them, I-Jam's LP which uses Iomega's PocketZip technology is going to impact the worlds of music and spoken word.''

``We're very excited to be working with our partner, I-Jam Multimedia, in bringing this new and innovative format to market,'' stated Michael Herrick, CEO of MediaBay, Inc. ``The potential of this new secure format as another distribution vehicle for our vast library of spoken word audio is enormous, and we look forward to capitalizing on its success.''

The pre-recorded LP is a compact removable storage media with many advantages over the current flash cards used to download and play MP3 files. The contents of the LP are entirely secure and cannot be erased or uploaded. The LP will be recorded in the Windows Media Format and support Microsoft's Windows Media digital rights technology exclusively.

``I-Jam's LP offers a great way for consumers to get their music and a new distribution opportunity for the music industry,'' said Kevin Unangst, Group Product Manager, Digital Media Division, Microsoft Corp. ``We are excited that I-Jam chose the Windows Media Format and our DRM technology to offer consumers the great CD-quality music they expect, combined with a secure solution that respects the rights of artists.''

The LP will play in the new HipZip, the latest digital audio player from Iomega which features the PocketZip drive, designed for skip-free playback and fast USB downloads. In addition, I-Jam's forthcoming Win-Jam II digital audio player, featuring Microsoft Windows Media Player 7, will also play LPs.

``Iomega is proud that I-Jam Multimedia has elected to utilize our new PocketZip disk for its new LP format for audio distribution,'' said Bruce Albertson, President and CEO, Iomega Corp. ``I-Jam's exciting announcements with content providers are great news for the proliferation of the PocketZip platform.''

LP Content

LPs from the following artists will be available: Bender, Charlie Daniels Band, Seven Dust, Snoop Dogg Presents Eastsidaz, XTC and 2GE+HER, as well as Jaci Velasquez and Rachael Lampa for the Christian market exclusively. Audio books available on LP from Random House will include Danielle Steele's The House on Hope Street, James Bradley's Flags of our Fathers, Michael Crichton's Timeline, Bob Costas' Fair Ball, John Grisham's The Brethren and Rosamunde Pilcher's Winter Solstice. I-Jam is also actively negotiating with additional labels and expects to have an even more extensive artist list in the very near future.

LP Distribution

To make it easy for retailers to carry LPs, the disks are being packaged in the same size jewel cases of traditional CDs, to avoid forcing retailers to re-skew their bins and racks. Plus, thanks to a metal casing around the disk, the LP can be carried as easily as pocket change, without worrying about damaging the content. The LP will be sold at retailers for a suggested retail price of $19.98 at major book and music retailers.

For a period of eight weeks beginning on October 17, 2000, I-Jam will distribute and sell to retailers a point-of-purchase ``Pre-Pak'' to introduce this new product. The Pre-Paks will include Iomega HipZip players bundled with a free sampler LP as well as a blank recordable PocketZip disk. In addition, Pre-Pak retailers will offer up to nine different albums in the LP format.

Retailers targeted for the initial rollout include BestBuy, Tower Records and internet retailer MediaBay.com.

Widespread Industry Support

``We are very excited about releasing the new Jaci Velasquez project, Crystal Clear, on the LP format,'' offers Elisa Elder, Vice President and General Manager, Word Records. ``Jaci's recording will be the first LP to be released in the CBA marketplace, and the news that it's coming is creating quite a buzz. The folks at I-Jam have a real winner!''

``Iomega's PocketZip disk offers real promise as a new format for downloading and locking content to a single place, creating a secure and equitable exchange between the provider and the user,'' said Richard Sarnoff, President of the New Media Group at Random House. ``For spoken word works, PocketZip disks represent a convenient and secure format for delivering entertainment to the on-the-go listening consumer.''

``Tower Records is extremely happy to participate in the launch of I-Jam's LP. The prospect of adding another configuration to our mix is very exciting. Tower takes pride in the fact that we carry a tremendous breadth of product, and to be the first pure record retailer to carry the LP is something we are proud of,'' stated Kevin Cassidy, Vice President of North American Operations, Tower Records.

``I-Jam's new LP, coupled with Iomega's PocketZip technology, is an exciting new development for the security of portable music,'' stated Ted Cohen, Vice President of New Media, EMI Recorded Music.

About I-Jam Multimedia LLC

I-Jam Multimedia LLC, headquartered in Schaumburg, IL, was formed in 1999 to develop and market micro-sized, multimedia products in the digital audio and video categories. The company is leveraging its advanced, in-house expertise in microcircuit design and development with its consumer marketing experience to create innovative solutions for the entertainment and technology industries. For more information, go to the company's website at http://www.ijamworld.com.

I-Jam and License Plate are trademarks and/or registered trademarks of I-Jam Multimedia LLC. Other product and company names mentioned herein may be the trademarks of their respective owners.

SOURCE: I-Jam Multimedia LLC