Information services for digital media.

Audible Magic Press Release

Audible Magic’s CopySense™ Appliance

First Network Device Specifically Designed To Control P2P

LOS GATOS, California — October 21, 2003 — Audible Magic Corporation, a leading provider of content management and anti-piracy solutions, today announced the CopySense™ Network Appliance, the first product to give network administrators comprehensive control over P2P file trading. The product provides the broadest range of options for managing P2P usage, including:

The CopySense Network Appliance installs quickly and easily with no effect on network performance, providing an ideal, easy-to-use solution for any business or organization concerned about bandwidth, security, and legal issues resulting from P2P software usage.

Operating in a manner similar to anti-virus programs, the CopySense Network Appliance offers a unique and powerful mode where P2P files containing offending media content, such as copyrighted songs, are recognized and blocked. In this mode of operation, the CopySense Appliance performs an “on-the-fly” match of P2P files against copyrighted material registered in its database.

Audible Magic’s CopySense (copyright-sensing) technology is based upon patented techniques that generate digital fingerprints for audio content. Fingerprints are generated by electronically “listening” to the song or audio file, and do not depend on metadata imbedded in a file which can be corrupted or changed. Future CopySense enhancements will extend protection to other forms of copyrighted media, including video, games and software.

The CopySense technology has already been proven in Audible Magic’s RepliCheck™ anti-piracy information service, an industry standard in the CD replication market. The CopySense appliance utilizes the RepliCheck database, which is one of the largest song registries in the world. RepliCheck offers signatures for over 3.7 million copyrighted titles including the catalogs of the 5 major labels and over 500 independents. Over 5,000 new songs are added each week. Universal Music Group recently announced an agreement to deliver content electronically to RepliCheck for timely registration of their new releases (http://www.audiblemagic.com/news/press-releases/pr-2003-08-12.asp)

“The CopySense Appliance is the first solution to directly address the primary issue of P2P software from a network owner’s perspective, which is the trading of copyrighted files,” said Vance Ikezoye, founder and CEO of Audible Magic. “P2P is not the problem, but the use of P2P to trade pirated content is. With our system, files authorized for trading can still be traded, but with no trades of unauthorized files there are no grounds for copyright infringement litigation.”

With the ability to block transfers of copyrighted files, the system provides an optimal balance between the delicate issues of user privacy and anti-piracy. The CopySense Network Appliance can simply run in the background, acting upon offending P2P files, disregarding everything else.

Developed under a technology sharing agreement recently announced with Palisade Systems (http://www.audiblemagic.com/news/press-releases/pr-2003-09-09.asp), the CopySense Network Appliance is configured through a simple, web browser to define the rules of operation on a network. Additional options include applying P2P usage rules according to time-of-day, or applying them to specific sub-net addresses.

Price and availability: The CopySense Network Appliance is available in three models, for managing 2MB, 50MB, and 150MB networks. CSA-002 is priced at $3,990, CSA-050 is priced at $11,990, and CSA-150 is priced at $19,990. One year of regular content updates, similar to virus signature updates, is included with the initial purchase. Subsequent one-year subscriptions to content updates are available for all three models, priced at $200, $600, and $1,000 respectively. Annual support and maintenance agreements are also available. All three models are available mid-November. For more information, contact Audible Magic at 408.399.6405, or www.audiblemagic.com.

About Audible Magic, Inc.

Audible Magic Corporation provides content management and anti-piracy services to the media and entertainment industries as well as to business, governmental, and educational institutions. The company's offerings utilize patented content identification technologies and an extensive reference database of audio and video content. Its digital technology and services are designed to monitor, track, manage, filter, and monetize digital content in all of its forms. The company has been active providing solutions for the Web 2.0 user-generated content video sharing sites.

Audible Magic has long-term relationships with the major record labels that have registered their content in the company’s database that holds one of the largest collections of copyrighted digital song recording fingerprints in the world. Corporate partners include EMI Recorded Music, Palisade Systems, Sony/BMG Music, Universal Music Group, V2 Music, Warner Music Group, and EMI Recorded Music. Audible Magic’s technology is also employed by Grouper, iMesh and PlayLouder MSP music service. Other major market customers include over 70 educational institutions and the media manufacturing industry. Audible Magic’s products include the CopySense P2P Plug-In; CopySense Network Appliance, and RepliCheck.

The Company was founded in 1999, and it operates from offices in Los Gatos, Los Angeles, and Berkeley, California.

For more information, visit Audible Magic’s website at www.audiblemagic.com.

For more information, please contact:

Audible Magic Media & Analyst Inquiries

Sarah McMullen
McMullen & Company
310.283.7907
smcmullen@earthlink.net