Monday September 20, 4:15 pm Eastern Time
Company Press Release
Valley Media and Amplified.com Enter Into Digital Distribution Agreement
WOODLAND, Calif.--(BUSINESS WIRE)--Sept. 20, 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 entered into an agreement with Amplified.com, a leading digital music distributor, regarding the digital distribution of music. The two companies will jointly offer digital music downloads and custom CD compilations to music retailers. The agreement further provides that Amplified.com will manufacture custom compact discs within Valley Media's Woodland, California, distribution center and that Valley Media will receive an equity stake in Amplified.com.
``We have been looking forward to signing this deal since the letter of intent was announced last June,' said Rob Cain, Valley Media's President and CEO. ``We recognized some time ago that digital distribution would provide opportunities for our industry and for Valley. We have been active in preparing for a blended age in which physical and digital product exists side by side. We look forward to working with Amplified.com to sell compilations and downloads to our customers and to work with Amplified to obtain additional digital distribution rights.'
Wayne Parker, President of Amplified.com added, ``We are pleased to partner with Valley Media to complement their leadership in physical distribution. Our current offering of digital downloads by well-known artists including Tori Amos, Sarah McLachlan and David Bowie, marks the confirmation of major labels joining the digital music revolution. Projects like these, as well as the addition of custom compilation CDs, increase the variety of Valley's offerings and should help Valley maintain its leadership in distribution of music over the Internet.'
About Valley Media:
Valley Media (Nasdaq: VMIX - news) is a recognized leader in Internet fulfillment and the full-line distribution of music, video, DVD product, independent distribution, publications and proprietary database products. Valley Media operates facilities in seven states with primary distribution facilities in Louisville, KY, and Woodland, CA, where its corporate headquarters are located. Additional information regarding Valley Media 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' or 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 Annual Report on Form 10-K. Readers of the 10-K should pay particular attention to the sections entitled ``Management's Discussion and Analysis of Financial Condition and Results of Operations' and ``Factors Affecting Operating Results.'
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Contact:
Valley Media, Inc.
Randy Cerf or Rob Cain, 530/661-6600
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