MusicNet, a leading digital music company, and Warner Music Group announced today that the two companies have enhanced their existing subscription agreement to provide MusicNet users greater flexibility with regard to the content they download and at the same time have entered into a second non-exclusive agreement giving consumers the ability to purchase individual tracks from WMG's extensive catalog. Under the enhanced subscription license, consumers can now transfer tracks to secure portable devices. Under the new download agreement, MusicNet customers in the U.S. can now choose from nearly 40,000 tracks by WMG's world-renowned artists to buy the tracks online, download them to a PC or secure portable device, and burn them to CD-R. Today's news builds upon the existing agreement between the two companies, which was announced in April 2001 when WMG licensed its controlled recordings to MusicNet for inclusion in its digital music service.

Alan McGlade, CEO of MusicNet stated: "MusicNet is pleased to offer enhanced features and more of the music that consumers love. Extending our partnership with Warner Music Group gives MusicNet access to some of the world's top artists as well as more of the features consumers are asking for from a digital music service. This announcement is another positive step in the advancement of our business."

Paul Vidich, executive vice president of strategic planning and business development for Warner Music Group said, "By expanding our relationship, MusicNet will be able to make available to its customers a highly flexible and dynamic music offering. We are delighted to provide our record labels with this powerful outlet for their artists, and we are confident that MusicNet's improved platform will serve as the foundation for many compelling music services."