Audible Magic Press Release

New Technology Helps Make Peace Between P2P Users And The Entertainment Industry

New Functionality For Audible Magic’s CopySense® Network Appliance Educates Users While Enforcing Network Policies

LOS GATOS, California — September 26, 2006 —

Audible Magic Corporation announced that its popular CopySense® Network Appliance now helps schools manage and educate users with respect to copyright policy and appropriate use of peer-to-peer (P2P) file sharing. With a new add-on module, the CopySense Appliance not only filters the illegal sharing of copyrighted media files but also can now help universities enforce network policies by replacing manual processes.

“We’ve spent years working closely with educational institutions and helping them find peace between students and the entertainment industry,” said Audible Magic CEO Vance Ikezoye. “Furthering the mission of education is our goal with these new features.”

The new Education and Administration Module, available for both existing and new installations of the CopySense Appliance, allows campuses to determine their own network use policies and easily select from a range of actions in response to violation attempts. “Some campuses just want to curtail illegal file trading,” said Ikezoye, “while others want to restrict all P2P activity.” In either case, the CopySense Appliance allows the institution to choose what constitutes a network use violation, what the significance of each violation is, and how many violations trigger some kind of automatic action toward the user.

Automatic actions taken by the CopySense Appliance can include redirecting the user’s web browser and/or restricting the user’s network access. In one possible scenario, when a user attempts to use a P2P application to illegally download a copyrighted song or movie, a notification could be automatically sent and the user classified as a first offender. Upon a 2nd offense, P2P and web access bandwidth could be reduced significantly, and the user could be required to complete a self-paced education module on the law and value of copyrights. The 3rd offense could block all network use for 48 hours. The 4th offense could block all network use and require the user to meet with a designated advisor before restoring access. Many other scenarios are possible, matching a wide range of institutional policies and enforcement procedures.

Selectable network violations range from attempting to exchange copyrighted music, video or software files to attempting to exchange files containing sexual content including child pornography. Violations can also extend to attempts to access web sites containing known malicious content or child pornography. Some institutions may choose to prohibit all P2P access and/or prohibit access to problem web sites.

Ikezoye remarked, “Institutions have been telling us they not only want to prohibit illegal network traffic, but they also want to gently educate and motivate students toward appropriate network use. In any of these scenarios, the institution can choose to keep user identities anonymous and just let the CopySense Appliance do the work without collecting user information.”

More About The CopySense® Network Appliance

The CopySense Appliance is widely installed in public and private educational institutions across the US. The product is best known for its ability to filter out P2P transactions containing illegal file trades in a manner very similar to the way virus filters operate.

Artists and publishers desiring to protect their copyrighted works register in Audible Magic’s continually updated database. The media ‘fingerprints’ in that database are then matched against file trades attempted on networks where the CopySense Appliance is installed. Offending file trades are blocked while legitimate file sharing is left untouched. The filtering capabilities of the CopySense Appliance also expand to the selective blocking of malicious content, including child pornography, on both P2P networks and web sites.

For more information about the CopySense Appliance and solutions available to education, visit www.audiblemagic.com/education.

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