LOS GATOS, California — June 1, 2004 — Audible Magic, a leading provider of products and technology for tracking and controlling copyrighted content usage, today announced that it has signed an agreement with Sony Music through which the two companies will work together to address a broad range of content management and anti-piracy initiatives.

As part of the agreement Sony Music will electronically register its new music with Audible Magic’s CopySense, which can be used to recognize and block unauthorized downloads of copyrighted songs on P2P networks. Sony Music material will also be registered with RepliCheck, a database of “audio fingerprints” that CD pressing plants can utilize in order to avoid pirate activity. This registration will also allow Sony Music material to be tracked by Audible Magic’s broadcast monitoring services, which provide royalty information used by SESAC, and marketing information used by CMJ Network for its RAM (Realtime Airplay Metrics) airplay reporting service.

Sony Music and Audible Magic will also work together to support the Campus Action Network (CAN), an industry-wide initiative that provides colleges and universities with recommendations on new technology solutions, including filtering systems, that help combat illegal file-sharing more effectively while preserving other legitimate uses of P2P services. CAN also helps universities across the country to identify the legitimate online music services that work best for them, and to educate their student bodies on copyright issues related to peer-to-peer file sharing.

In addition, Sony Music will license Audible Magic software libraries and integrate them into their custom-built global digital asset management system. The Audible magic fingerprinting software, which is based upon its CopySense technology, will enable Sony Music to streamline content management in their database of hundreds of thousands of songs across international regions.

“We are looking forward to working with Sony Music on a broad range of technology issues associated with their business” said Vance Ikezoye, CEO of Audible Magic. “We believe our products and technologies support their vision and we are enthusiastic about the prospect of working with Sony on issues that are so vital to the new media industry.”

Philip R. Wiser, Chief Technology Officer, Sony Music Entertainment, commented, “Audible Magic’s pioneering work in the area of content identification, tracking, and protection has earned them a well-deserved reputation for excellence, and we are delighted to be working with them on a wide range of innovative initiatives including our CAN and P2P filtering programs.”

Sony Music Entertainment Inc. (SMEI) is a leading global recording company. The three divisions of SMEI are: Sony Music (the U.S. recording company comprised of Automatic Productions, Columbia Records Group, Epic Records, Sony Music Nashville, Legacy Recordings, Sony/ATV Music Publishing, Sony Disc Manufacturing, Sony Music Distribution, Sony Music Custom Marketing Group, Sony Music Studios, and Sony Wonder); Sony Music International (active in over 67 countries through its network of wholly owned subsidiaries, joint ventures and licensees); and Sony Classical, which includes the Sony Classical Film & Video division.

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
[email protected]