News! "GOODNOISE TO ACQUIRE INTERNET MUSIC PIONEER IUMA
Acquisition Allows GoodNoise to Expand Offering to Include Branded
Environment for Unsigned Artists
REDWOOD CITY, Calif., May 17 /PRNewswire/ -- GoodNoise Corporation (OTC Bulletin Board: GDNO), the Internet's leading seller of downloadable music, today announced it has signed a definitive agreement to acquire the privately-held Internet Underground Music Archive (IUMA), Santa Cruz, Calif. IUMA, which was founded in 1993, was the Internet's first site to offer unsigned musicians the opportunity to promote and sell their music using the Web. IUMA hosts millions of page views each month and features over 3,500 artists on individual web sites offering unique URLs (bandname.iuma.com).
Under the terms of the agreement, GoodNoise will issue approximately 448,000 shares of GoodNoise common stock. Completion of the acquisition, which is expected during the quarter ending June 30, 1999, is subject to customary terms and conditions. Following the completion of the transaction, IUMA will operate as a wholly-owned subsidiary of GoodNoise Corporation.
GoodNoise, which plans to change its name to EMusic.com in the near future, is the premier destination for high-quality downloadable music in the MP3 (MPEG1, layer 3) format. GoodNoise offers an extensive repertoire including hundreds of artists and thousands of tracks in a variety of genres. Through license agreements with leading independent record labels and relationships with established artists, GoodNoise has emerged as the clear leader in electronically distributed music.
The acquisition of IUMA will allow GoodNoise to offer music fans the entire spectrum of downloadable music. While GoodNoise.com (soon to be EMusic.com) will continue to provide an extensive and rapidly expanding repertoire of established, signed artists, music fans will now also have the option to explore unsigned artists through IUMA. According to GoodNoise President and CEO, Gene Hoffman, this gives music fans two things they want -- a place to buy downloadable music from well-known, name artists and the ability to discover up-and-coming new talent in a branded, unsigned environment.
"Music fans want choice, but they don't want complete chaos," said Hoffman. "IUMA was the first site on the Web focused on music and was helping bands get on the Internet years before anyone ever heard of MP3. With IUMA, we see a great opportunity to offer Internet music fans a logical continuum of music," said Hoffman. "When fans are looking for music from established artists, they will find them through EMusic.com. When they want to search for the undiscovered gem, they can browse the underground scene on IUMA."
"GoodNoise already has relationships with dozens of the leading independent record labels," said Antony Brydon, CEO of IUMA, "This acquisition will give the artists on IUMA the opportunity to demonstrate their talents in a highly visible environment and benefit from GoodNoise's links with indie labels."
IUMA founder and President Jeff Patterson added, "IUMA's mission has always been to give unsigned artists the tools and environment to promote and distinguish themselves. Our association with GoodNoise now provides our artists with an enhanced opportunity to gain significant visibility and attract the attention of independent labels. No one else is positioned to offer aspiring recording artists this kind of opportunity."
IUMA has created over 3,500 individual Web sites for aspiring recording artists, offering unique URLs (bandname.iuma.com) for each artist. IUMA also offers audio sampling of artists' recordings in Real Audio and MP3 formats as well as purchase of downloadable tracks and physical product through a secure e-commerce system. Each IUMA artist Web site features graphics, photos, lyrics, tour dates, artist bios, and other information desired by the artist.
Although the companies have not announced specific plans following the completion of the acquisition, GoodNoise plans to continue to operate IUMA as an independent Web site with integration between Web sites where appropriate. Additional details will be made available upon closing of the acquisition.
About IUMA
IUMA (www.iuma.com), the Internet Underground Music Archive,
pioneered the delivery of music on the Internet in 1993. IUMA's
mission is to offer unsigned musicians a viable means to promote and
distribute their music online. IUMA has created a unique way for fans
to explore and discover new music like never before, empowering the
unsigned musician through a reinvention of the music industry.
IUMA hosts millions of page views each month and features over 3,500 artists on individual Web sites offering unique URLs (bandname.iuma.com). IUMA offers fans audio sampling in Real Audio and MP3 formats as well as purchase of downloadable tracks and physical product through a secure e-commerce system. IUMA artist Web sites also feature graphics, photos, lyrics, tour dates, artist bios, and whatever else the artist dreams up.
About GoodNoise
Since it was founded in January 1998, GoodNoise Corporation (OTC
Bulletin board: GDNO) has established itself as a clear leader in the
rapidly expanding market for downloadable music. Through relationships
with artists and license agreements with leading independent record
labels, GoodNoise has emerged as the premier Web site for the sampling
and purchasing music in the MP3 (MPEG1, Layer 3) format, which has
become the de facto standard in the digital distribution of music with
millions of users around the world. GoodNoise.com features a
constantly expanding catalog of music and offers music fans complete
albums for $8.99 or the ability to purchase individual tracks for $.99.
GoodNoise recently completed the acquisition of EMusic.com. In the
near future, GoodNoise plans to change the primary brand of its
downloadable music Web site to EMusic.com. GoodNoise is based in
Redwood City, California. "
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