Doesn't TSIG work with both of these groups ?
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Wednesday June 23, 6:31 pm Eastern Time
Company Press Release
Valley Media and Amplified.com to Pursue Digital Partnership
WOODLAND, Calif.--(BUSINESS WIRE)--June 23, 1999--Valley Media, Inc. (Nasdaq:VMIX - news), a recognized leader in the full-line distribution of music and video entertainment products, today announced that it has signed a letter of intent with Amplified.com, a leading digital music distributor, regarding the digital distribution of music. The two companies intend to jointly offer digital music downloads and custom CD compilations to music retailers. The letter of intent further provides that Amplified.com will build a custom CD manufacturing facility within Valley Media's Woodland, California, distribution center and that Valley Media will receive an equity stake in Amplified.com.
''The proposed relationship with Amplified.com would move Valley Media into the digital distribution of music,'' said Rob Cain, Valley Media's President and CEO. ''The relationship would allow us to offer our customers the ability to digitally download and manufacture CD compilations. Amplified.com would manufacture custom CDs from within our California distribution center containing songs specifically requested by consumers. As always, we would provide these services only through our retail music customers and not directly to consumers.''
Wayne Parker, President of Amplified.com added, ''Valley has been a pioneer in providing fulfillment services to on-line and music retailers and supporting the rapid growth of on-line music sales. Now, with Amplified.com's support, Valley could take another step forward into the area of digital music distribution. We believe the proposed relationship with Valley Media serves as a great endorsement of our business by a recognized leader in full-line distribution.''
Messrs. Cain and Parker noted that the letter of intent does not yet represent a binding agreement. The transactions contemplated by the letter of intent are conditioned on the two companies negotiating a definitive written agreement setting forth the terms of their relationship.
About Valley Media:
Valley Media (Nasdaq:VMIX - news) is a recognized leader in full-line distribution of music, video and DVD product, Internet fulfillment, independent distribution, publications and proprietary database products. Valley Media operates facilities in seven states with primary distribution facilities in Louisville, KY and at its Woodland, CA corporate headquarters. Additional information is available at www.valley-media.com.
About Amplified.com:
Amplified.com is a leading business-to-business digital music distributor, providing download and custom compilation services to leading on-line music retailers and record labels. Amplified.com features a large selection of songs available for secure download on the Internet, and was the first to integrate that feature with custom CDs. Amplified.com also provides Internet music sampling services to a variety of customers, including Billboard Online. The company is privately held, with its institutional investors including Bear Stearns' Constellation Ventures, Psilos Group and Noro-Moseley Partners. Additional information is available at www.Amplified.com.
This press release contains forward-looking statements made pursuant to the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by words such as ''will,'' ''expects,'' ''anticipates,'' ''plans,'' or ''intends'' and by other descriptions of future circumstances or conditions. Actual results may differ materially from those projected in these forward-looking statements. Factors that could affect Valley Media's actual results include, without limitation, risks and uncertainties related to the following factors: intense competition, customers' ability or preference to buy product direct, facilities and systems integration upgrades, new electronic delivery technologies and copyright or royalty disputes. More information about these and other factors that could negatively affect Valley Media's financial performance and the value of its common stock is contained in Valley Media's filings with the Securities and Exchange Commission, including its registration statement on Form S-1. Note particularly the Risk Factors and Management's Discussion and Analysis.
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