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The companies agreed to integrate the Mjuice secure-MP3 delivery, playback and transaction system into PortalPlayer's suite of digital media delivery and management tools, including PC applications software, firmware and chips.

PortalPlayer markets its system to leading manufacturers of portable audio devices, including portable MP3 players, MiniDisc players and mini-component audio systems.

The integration of Mjuice compatibility into a PortalPlayer enabled system will provide consumers of these next-generation audio products with access to tens of thousands of songs available from the Mjuice.com digital music store and its network of affiliate partners, including Infospace.com, Winamp.com and Tucows.com. A pioneer in the distribution and sale of secure music, Mjuice offers fans the latest in digital music from leading artists, including recent releases from Third Eye Blind, Stone Temple Pilots, Puff Daddy, Mos Def, Mobb Deep, Type O Negative, Kurupt, Lynyrd Skynyrd, Styx and the Freestylers.

``Our agreement with PortalPlayer furthers Mjuice's strategy to make our digital music easily accessible to fans worldwide by seamlessly integrating our system into a variety of entertainment devices, including portable players and home stereos,'' said Arnold Brown, founder and CEO of Mjuice.com. ``We're confident in PortalPlayer's end-to-end solution, and extremely excited to facilitate playback of Mjuice music for their stellar line-up of consumer electronics partners.''

As part of the agreement, Mjuice will develop a free software plug-in for PortalPlayer's Media Management Software Player, enabling the product to download and play secure-MP3 Mjuice files, and upload the files to portable devices. Mjuice will additionally develop a firmware and chip-level module for PortalPlayer's Hardware Audio Player/Recorder, enabling the product to play secure-MP3 Mjuice files and interpret specific rules associated with the rights of the purchaser.

``We believe the integration of PortalPlayer's solution with the Mjuice music system delivers a highly secure end-to-end solution for device manufacturers,'' said John Mallard, President and CEO of PortalPlayer. ``This solution enables consumer electronics companies that use our technology to deliver an exciting product that offers consumers immediate access to a broad range of new Internet music.''

About Mjuice.com

Founded in 1998, Mjuice.com has pioneered the first MP3-based music security and download system. Based on this system, the company has developed the Web's largest secure retail store and established a network of affiliate partner sites to promote, distribute and sell secure digital music. Mjuice currently offers its distribution partners access to an extensive music catalog of 30,000 licensed tracks from more than 70 major and independent record labels. Current Mjuice distribution partners include AOL's Winamp, Infospace.com, iSyndicate.com, Tucows.com, AKA.com and Listen.com. Mjuice is based in San Francisco's Audio Alley and currently has 25 employees. For more information please visit www.mjuice.com.

About PortalPlayer Inc.

PortalPlayer, Inc., a California Corporation, develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus today on MP3 players/recorders. Products include destination website applications, PC media management software, firmware, and systems-on-a-chip. The Company's products support Internet-based delivery of multimedia content including music and other audio content, print and ultimately video materials to a variety of playback devices including portable MP3 players, home and automotive entertainment systems, and cellular phones.

Founded in June 1999, PortalPlayer is headquartered in Santa Clara, California with branch offices in Seattle, Washington and Hyderabad, India. The company has rapidly grown to more than 50 employees worldwide. PortalPlayer received its first round of funding from Chase Capital, Techfund, and FlatIron Partners. For more information, please visit www.portalplayer.com.

SOURCE: Mjuice.com