First Major Label to Contract with a Provider of Content-Based Identification (CBID) Technology

LOS GATOS, California — October 29, 2002 — Audible Magic Corporation, a leading provider of content management and media information services, announced today it has entered into an agreement with EMI Recorded Music as its preferred vendor for audio fingerprinting technology. The agreement, the first between a major label and a provider of content-based identification (CBID) technology services, indicates a strong endorsement of Audible Magic and its range of solutions for identifying, monitoring and tracking multimedia content.

The two companies anticipate implementing an initial project in Q4 utilizing Audible Magic systems, which can monitor and identify the delivery of digital audio content in all formats, including compressed audio such as MP3 files. Audible Magic will also provide EMI recorded music with technical consulting on a range of content management and media issues that can be addressed using audio fingerprinting.

EMI will supply Audible Magic with music from its existing catalog, as well as all of the company’s new releases, for addition to the Audible Magic song database, which is one of the largest in the world. EMI Recorded Music will also recommend use of Audible Magic’s information services to its affiliates and licensees of EMI content. Some of these services include auditing and tracking of EMI content usage by licensees, real-time playlist monitoring for traditional and Internet broadcasters, audio content identification services for consumer entertainment software and devices, and monitoring of peer-to-peer traffic on networks.

“We’re excited about entering into this relationship. We believe Audible Magic’s systems will provide us with the ability to understand and capitalize on the opportunities offered by the evolving digital marketplace,” said Jay Samit, senior vice president, new media, EMI Recorded Music. “Audible Magic has emerged as the only viable vendor in their market segment with a wide range of applications and technologies ideal for our needs. It’s to EMI’s advantage to move quickly and clearly to form a partnership with this strong industry ally.”

“Record companies need to utilize the best and most sophisticated tools available to manage and grow their business in these tough times,” said Vance Ikezoye, CEO, Audible Magic. “We believe that this agreement demonstrates EMI’s vision for enhanced online marketing and promotional activities and the ongoing protection of its copyrights.”

Audible Magic Corporation is the leading provider of content management and anti-piracy services. Its patented content identification technologies and extensive reference database of audio and video content enable the company to monitor, track, manage, filter and monetize multi-media digital content. The company’s core copyright-sensing technology, CopySense®, accurately identifies digital or broadcast media content based on the perceptual characteristics of the content itself. Built on a patented electronic fingerprinting process, the technology is robust, efficient, and massively scalable. Recognized throughout the music and video industry as the de factor leader in identification services, Audible Magic is headquartered in Los Gatos, California. Its customers include Web 2.0 websites, CD/DVD replicators, peer-to-peer networking companies, internet service providers and universities, which span the media and entertainment industries, major business, governmental and educational institutions markets.

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

Audible Magic Media & Analyst Inquiries

Jay Friedman
Vice President of Marketing and Product Management
408-399-6405 x238
j_friedman@audiblemagic.com