eMUSIC LAUNCHES IN CANADA

MP3 Pioneer Offers Canadians DRM-Free Tracks, Great Value,
3.5 Million+ Tracks of Independent Music and Thousands of
Audio Books

TORONTO and NEW YORK, April 29, 2008 -- eMusic (http://www.emusic.com), the world’s largest retailer of independent music launches its award-winning service in Canada today. David Pakman, President and CEO, eMusic says, “We are excited to introduce the most diverse catalogue of independent music in the world to Canadian music fans and provide a download service that not only caters specifically to their needs, but offers great value and tracks in the universally compatible MP3 format.”

With 33,000 of the world’s top independent labels and major audio books publishers, eMusic is unrivalled in catering to adult customers interested in entertainment outside the commercial mainstream and will offer Canadian customers a superior selection of music from Canadian independent labels. A subscription-based service that allows consumers to own, not rent, their entertainment, eMusic encourages people to discover new music and audio books with low download prices, market-leading discovery features and editorial guidance from more than 200 renowned music experts. And, all eMusic tracks are offered in the universally compatible MP3 format, which works with every digital music hardware and software device including the market-leading iPod®.

eMusic’s vast catalogue of more than 3.5 million tracks features both established and emerging artists in every genre: rock, jazz, hip-hop, blues, classical, country, folk, electronic, world, reggae, francophone and more. It includes key Canadian labels such as Nettwerk, Arts & Crafts, Justin Time, Secret City Records, Mint Records and Paper Bag and many Canadian artists including: Arcade Fire, Feist, Destroyer, Sarah McLachlan, Tegan and Sara, Martha Wainwright, Hayden, Tokyo Police Club, Oscar Peterson and other artists popular in Canada such as David Gray, Crowded House, Mike Doughty and Silversun Pickups.

To help navigate this wide-ranging catalogue of online music, eMusic offers customers unrivaled discovery tools including technology that analyzes their download histories to suggest playlists and personalized recommendations on new arrivals, and community features such as “Neighbors” and “Fans” that allow members to share their discoveries. Members can also view rich editorial that includes thousands of reviews, fascinating in-depth columns, the signature eMusic Dozen (a guided listing of the best music the site has to offer under a given theme) and genre-specific newsletters, all compiled by an award-winning staff of more than 200 music experts.

eMusic also brings its sophisticated editorial voice to its audio books offering, which includes selections from major audio books publishers such as Random House, Penguin, Hachette, Blackstone Books and Naxos, with more titles arriving every week. The catalogue comprises a range of fiction and non-fiction classics, bestsellers and new releases, including The Blind Assassin by Canada’s own Margaret Atwood, notable books narrated by well-known voices such as Vladimir Nabokov’s Lolita read by Jeremy Irons and exclusives such as McSweeney’s Field Recordings, a collection of short stories previously published in tastemaking literary journal McSweeney’s Quarterly Concern.

eMusic has been a pioneer in selling tracks in the DRM-free MP3 format in the U.S. since 1998 and is second only to iTunes in the number of downloads sold. The MP3 format allows consumers to play tracks on any device, burn CDs and make as many copies as they like for personal use.

eMusic offers 50 free bonus music downloads and one free audio book download at sign-up. Its subscription pricing provides music lovers with an inexpensive, low-risk way to discover great new music for as low as 37 cents per track. Canadian monthly pricing plans are as follows:

Music
• eMusic Basic - 30 downloads $11.99
• eMusic Plus - 50 downloads $17.99
• eMusic Premium - 70 downloads $23.99

Audio books
• 1 audio book - $11.99
• 2 audio books - $22.99

"eMusic has been a valuable partner for us in the U.S. and Europe, helping us to introduce our artists to an audience that's passionate about discovering new music," said Terry McBride, CEO of Nettwerk Music Group. "We're looking forward to working even more closely with them to give Canadian music fans a great way to explore our catalogue and great new artists such as The Weepies and Ladytron, as well as more established artists like Sarah McLachlan and Barenaked Ladies"

eMusic has achieved significant success in the U.S. and E.U., selling more than 200 million music downloads since November 2003, and expects that its Canadian offering will help to expand the digital music market in Canada. According to Nielsen SoundScan and the Canadian Recording Industry Association, digital downloads, subscriptions and mobile music make up only 12 percent of total sales in Canada, in contrast with the U.S., where they make up 29 percent of sales.

In Canada eMusic partners with Best Buy and offers free songs with every Avis® car rental.

About eMusic
eMusic (http://www.emusic.com) is a specialty digital entertainment retailer that has been at the forefront of offering MP3 downloads and customer-friendly prices since its inception in 1998. The company is focused on serving customers aged 25 and older by offering independent music and audio books in a universally compatible format at a great value. It is the world’s largest retailer of independent music and the world’s second-largest digital music service after iTunes, with more than 3.5 million tracks from 33,000 of the world’s leading independent labels and thousands of titles from top audio book publishers. To super-serve its more than 400,000 customers, eMusic provides award-winning editorial content, a vibrant online community and unrivaled music discovery tools. eMusic’s subscription-based service offers free music downloads or one free audio book at sign-up, giving consumers an inexpensive, low-risk way to explore great new music and books they wouldn’t find otherwise. Based in New York with an office in London, eMusic is available in the U.S., Canada and all 27 E.U. nations. eMusic.com Inc. is wholly owned by Dimensional Associates, Inc., the private equity arm of JDS Capital Management, Inc.

NOTE: eMusic is a registered trademark and eMusic.com is a trademark of eMusic.com Inc. All other trademarks are the property of their respective owners.