NEW YORK, New York — February 1, 2006 —

ATI, Advanced Technology Industries, (OTCBB:AVDI) announced today that it has entered into a technology partnership with Audible Magic Corporation, a leading provider of content management and identification services The agreement is in advance of the launch of ATI’s Qtrax legal P2P music listening and download service.

Qtrax will be a new type of advertising-supported P2P service offering digitized mainstream music under license from copyright holders through the integration of Audible Magic digital fingerprinting and copyright filtering services. Audible Magic services prevent users from unlawfully distributing and/or reproducing copyrighted content that has not been licensed, and provides Qtrax label partners with assurance that intellectual property owners’ rights are both respected and compensated. Files authorized for sharing by content owners will be freely transferred via the Qtrax P2P network.

“Audible Magic’s technology is integral to providing rock-solid rights protection for our content partners and undoubtedly has allowed us to expand our label relationships,” said Allan Klepfisz, Chairman and CEO for Advanced Technology Industries. “Qtrax will substantially change the way digital music is offered to consumers. Rightsholders must be properly compensated but not in all instances by the consumer. We believe that our pioneering model has the potential to create a new industry standard.We have been buoyed by the music industry’s support which is clearly indicative of a timely responsiveness to consumers’ needs.”

“We believe that Qtrax represents a novel approach to the compensation of artists and rights owners through their ad-supported P2P model,” said Vance Ikezoye, founder and CEO of Audible Magic. “The combination of our technologies and their unique network will protect the rights of content owners and provide for their compensation while facilitating and encouraging greater consumer access to creative content.”

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 or contact:

Audible Magic Media & Analyst Inquiries

Jay Friedman
Vice President of Marketing and Product Management
408-399-6405 x238
[email protected]