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MusicGremlin Unveils Direct-to-Device Digital Music Service, Wireless Audio Player

FOR IMMEDIATE RELEASE

MUSICGREMLIN UNVEILS DIRECT-TO-DEVICE DIGITAL MUSIC SERVICE, WIRELESS DIGITAL AUDIO PLAYER
Company Completes Fully Integrated Platform for Secure, Legal Wireless Distribution of Digital Music

NEW YORK–December 14, 2005–MusicGremlin, Inc., today announced that its groundbreaking wireless digital audio player and integrated music store will debut during the 2006 International Consumer Electronics Show (CES) in Las Vegas, January 5-8, 2006.

MusicGremlin is launching a WiFi digital audio player pre-loaded with an embedded direct-to-device content service. The first of its kind, MusicGremlin’s integrated offering allows a user to acquire and wirelessly share digital music from the palm of their hand. Users will be able to download music from a catalog over two million available songs over-the-air and on-demand. MusicGremlin branded players will be available for sale to the public during the first quarter of 2006.

“MusicGremlin is redefining portable audio,” said Robert Khedouri, co-founder, MusicGremlin. “By developing a licensed digital music service together with our wireless player, MusicGremlin ensures a seamless and reliable experience for end users who want to download music to their portable devices. MusicGremlin makes it easy.”

With a MusicGremlin device, users can download music anywhere they can connect to an available WiFi network. The device’s WiFi manager scans and connects to available networks in the background, without interrupting a user’s listening experience. Even when not connected, users can browse and purchase new music, which is then delivered to their device the next time they connect.

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“IDC forecasts that the combined portable flash and jukebox MP3 player market will exceed 157 million shipments worldwide in 2009, and a key market driver will be the availability of easy-to-access sources of compatible music content,” said Susan Kevorkian, Program Manager, IDC Consumer Markets. “By integrating wireless access into portable devices and combining these products with online services, vendors can reach out to consumers in new ways by offering greater flexibility in finding and acquiring music.”

MusicGremlin DirectTM — A Record Store in Your PocketTM

The MusicGremlin player gives users access to more than two million songs from the MusicGremlin Direct service. MusicGremlin Direct offers consumers the option to subscribe to an unlimited “all-you-can-eat” monthly subscription service or to purchase downloads “a la carte” for permanent ownership. Customers can also purchase and download music and manage their accounts through a Web-based version of the service that can be accessed through a PC. Built through a partnership with MusicNet, the world’s leading business-to-business digital music service provider, MusicGremlin Direct includes content from all four major and 25,000 independent labels.

“MusicGremlin’s unique platform gives consumers the freedom to go about their daily lives without compromising their access to today’s hottest music,” said Alan McGlade, President and CEO of MusicNet. “Imagine standing in line at a store during your holiday shopping and being able to download and listen to an entire album and share it with your friends while you wait. That’s how easy it will be.”

MusicGremlin Direct subscribers also gain access to MusicGremlin’s proprietary Gremlist service, which provides users with added convenience by offering pre-programmed, commercial-free music playlists which are automatically pushed to their devices as part of their subscription service. This no-hassle feature allows users to regularly get fresh content on their devices with no additional effort.

Connecting Music Lovers Like Never Before

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The MusicGremlin player wirelessly connects to other MusicGremlin-enabled players, either locally or over the Internet, creating the first-ever portable music community. With permission, users can browse music collections of other users, and, if subscribers, can download desired songs.

“For music enthusiasts this is a dream come true,” said Jonathan Axelrod, co-founder, MusicGremlin. “Peer recommendation has always been a key part of how music fans learn about new music. By letting users connect to each other and share music directly from their portable players, MusicGremlin adds a whole new dimension to today’s digital music experience.”

Immediate Licensing and Availability for OEMs

MusicGremlin’s production-ready hardware reference design and embedded software solution is also immediately available for licensing to consumer electronics partners. The technology has been developed to allow partners to easily integrate MusicGremlin’s innovative features into their own product lines across a variety of device classes, including portable digital media players, home audio devices, and next-generation mobile phones. Qualified OEMs should contact the company for additional information and to schedule an appointment with a MusicGremlin representative during the Consumer Electronics Show.

About MusicGremlin, Inc.
Based in New York City, MusicGremlin, Inc. has created device-based software technology that connects to its proprietary digital music store, providing consumers with the next generation of benefits promised by digital music. MusicGremlin’s powerful combination of device software and secure digital content distribution allows users to discover, purchase, manage, control and legally share their digital music collections directly from their digital audio players–wirelessly and without requiring a PC. MusicGremlin’s patent-pending technology allows devices to access the MusicGremlin Direct music service and download tracks directly to MusicGremlin-compatible consumer electronics devices using wireless high-speed networks. MusicGremlin’s end-to-end system benefits content owners by providing a secure and exciting new distribution channel, and MusicGremlin’s device technology benefits consumer electronics partners by providing next-generation functionality to their digital audio products. For more information, visit http://www.musicgremlin.com

MusicGremlin , MusicGremlin Direct and the record store in your pocket are trademarks of MusicGremlin, Inc.

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