AT&T'S a2b music's First Birthday Caps a Year of Innovative Online Promotions & Audio Digital Distribution.

LOS ANGELES--(BUSINESS WIRE)--Nov. 2, 1998--

Over 25 Music Superstars -- Including Aerosmith, Bonnie Raitt,

Counting Crows, Garbage, Lenny Kravitz and Tori Amos --

Get On- and Off-Line Results With a2b music

a2b music(sm), AT&T's innovative online music delivery system, today celebrates its first birthday at the Webnoize Conference, capping a year of innovative Internet initiatives that has included successful, integrated on- and off-line promotions for over 25 leading music artists and the debut of the breakthrough direct marketing tool a2b MAIL.

In addition, the company has begun licensing programs for independent labels, and plans to further develop its consumer presence and distribution network.

From the secure digital download technology of the a2b music player to a2b MAIL, a2b music's customized, online marketing promotions with partner Electric Artists have ignited fans' excitement for, and driven sales of, new releases and events for such varied, high-profile artists as Aerosmith, Bonnie Raitt, Counting Crows, Tori Amos, Dave Stewart, Garbage, Big Punisher, Joe Walsh, Lenny Kravitz, The Verve Pipe and Willie Nelson.

The ongoing success of a2b music's campaigns with major music companies, such as Atlantic, BMG, Capitol, Interscope, RCA, and Virgin, has proven that by using a2b music's secure digital audio distribution technology, the music industry can confidently and effectively leverage the Internet for results-driven promotions.

"We help artists and record companies use the Internet to sell records now, not down the road," said Larry Miller, chief operating officer, a2b music. "We want to thank all our partners for helping make our vision a reality. This has been a remarkable first year for a2b music as we've set the industry standard for how artists and labels can securely and effectively use the Internet to excite music fans and generate sales while protecting their most valuable assets."

"a2b music set the standard by which successful Internet marketing promotions are judged today," said Mike Farrace, vice president publishing and direct-to-consumer, Tower Records. "When we work with a2b music, we know that everyone involved in the promotion including the fans, labels, artists and the retailers will benefit."

Internet Promotions That Changed the Industry

In its first year, a2b music has lead the industry with a number of groundbreaking campaigns:

November 1997 -- a2b music debuts with the first campaign to integrate online and brick-and-mortar retailing. (AT&T Launches a2b music with The Verve Pipe: A Trial for the Delivery of Music Over the Internet, November 3, 1998)

April 1998 -- a2b music pre-order campaign which included a free download of a previously unreleased track helps drive the artist's debut week sales to top 5 on the Billboard Albums chart. (AT&T's a2b music to Offer a Brand-new, Never-before Released Song from Atlantic Recording Artist Tori Amos, April 9, 1998)

June 1998 -- a2b music and a music retailer team up for an exclusive Enhanced CD that is only available via the retailer's online, 800 number, and in-store options, and has bonus tracks that can only be played through the a2b music player. (New Bonnie Raitt Album Part of Innovative Multimedia Campaign, June 9, 1998)

October 1998 -- First medley download featuring six 30-second audio clips from an artist's new album. (a2b music Gives New Spin to Willie Nelson's Teatro, October 6, 1998)

a2b MAIL Adds Excitement to Direct Marketing Campaigns

In July 1998, a2b music revolutionized direct Internet marketing with the debut a2b MAIL(sm), the first email application that requires absolutely no downloads, plug-ins, audio streaming technology or hyperlinking. A mini-a2b music client player is embedded into the actual e-mail message. The end-user simply opens it like any normal e-mail, clicks a button, and 12-to-15 seconds of high quality audio immediately plays.

A mouse-click on the integrated graphic automatically links to the co-branded download promotion page and more information on other related events. a2b MAIL provides links to key Web sites related to the promotion, such as retailers, contest pages, and partners. (AT&T's a2b music and BMG Entertainment Debut Major Breakthrough Application for Direct-to-Consumer Digital Marketing, July 6, 1998)

"a2b MAIL is a cost-effective, high-impact, direct-marketing tool," said Kevin Conroy, senior vice president, worldwide marketing, BMG Entertainment. "We recognized early on that BMG and a2b music share a vision for using the Internet to promote our artists and their music. Music consumers want information on new releases from their favorite artists. By using a2b MAIL and a2b music's digital delivery technology, we are able to communicate with these consumers in a very compelling way."

Any audio message can be sent using a2b MAIL. September 1998 marked the first time the application was used by a radio station, KSAN-FM (San Francisco, CA), to communicate with its listener database. (Customized Instant Audio Email Messages Ignite Direct Marketing Campaigns for the Radio Industry, October 14, 1998). Future direct marketing campaigns using a2b MAIL are planned by the music, radio, television, and motion picture industries.

Now and the Future

While a2b music has focused on working with major label artists, it has licensed its platform technology, including compression, security and licensing software and secure server-hosting services, to companies that support independent artists and labels. In addition to AT&T's www.digitalphono.com usage of a2b music's platform, current licensees of the a2b music platform include GMO and Digital Sight Sound.

Plans for the future include consumer initiatives to extend the reach and influence of a2b music by getting the player to more music fans, adding customization features to the a2b music player and expanding the personalization capability of a2b MAIL.

a2b music is also taking steps to create a broader distribution infrastructure for its services, as well as to formalize current relationships, in order to assemble a large network of high-traffic destination sites for the promotion, distribution, and sale of music online. One of the components will be the Internet's first syndicated music portal for the promotion, sale and distribution of new releases.

About a2b music

a2b music (http://www.a2bmusic.com), an Internet marketing and technology company, is leading the music industry in innovative uses of secure digital audio distribution. a2b music enables clients to leverage unique Internet opportunities to create customized in-store and online retail sales and marketing promotions. As the exclusive provider of AT&T Labs technologies for Internet delivery of secure digital music, a2b music also makes its compression, mastering and security software available through a licensing program.

Since its launch in November 1997, a2b music has been selected to create cross-media promotions for recording artists such as Bonnie Raitt, Tori Amos, Willie Nelson, Lenny Kravitz, Counting Crows, The Verve Pipe, Dave Stewart, Joe Walsh, SWV, Rocket From The Crypt and Gravity Kills.

a2b music customers include Atlantic Records, BMG, Camelot Music, Capitol Records, Fairwest Direct Inc., Interscope Records, N2K's Music Boulevard, RCA Records, Tower Records, Trans World Entertainment, TVT Records, Virgin Records and the Rock and Roll Hall of Fame and Museum, which uses a2b music's platform to power a digital archive of 27,000 CD-quality songs.

Note to editors: a2b music and a2b MAIL are service marks of AT&T Corp. All other companies or products listed herein are trademarks of their respective companies.