Alliance Entertainment's RedDotNet Appointed an Authorized Technology Provider by BMG Entertainment.

Business & Entertainment Editors/Technology Writers

CORAL SPRINGS, Fla.--(BUSINESS WIRE)--Jan. 22, 2001

-- RedDotNet Technology To Provide CD Burning Capability

To Major Label's Music Catalog --

Alliance Entertainment, a leading provider of business-to-business commerce solutions to the home entertainment product marketplace, today announced that BMG Entertainment, the global music division of Bertelsmann AG, has chosen its proprietary RedDotNet system as its authorized technology provider for on-demand distribution of selected albums from BMG's catalog into retail stores nationwide.

RedDotNet is a leading provider of network systems to retail points-of-sale. The current private broadband system, which is installed in more than forty locations nationwide, provides for previewing and on-demand manufacturing of CD's of selected titles from BMG's catalog (complete with cover art and liner notes). The newly launched "Mercury Dot" technology delivers advanced preview, multimedia and search capabilities contained in a 12-inch diameter "RDN Dot" featuring Alliance's All Music Guide's meta-data and a songs clips database. The system promotes the sale of on-demand manufactured product, and special orders of out-of-stock items through Alliance's consumer direct fulfillment services and currently stocked music in the store.

BMG joins Sony, EMI, and Universal Music Group to become the fourth of the five major music companies to endorse the RedDotNet system. By allowing content to be available through a secure in-store network, BMG can take advantage of new distribution channels and provide its retailers with additional revenue associated with expanded inventory availability.

BMG's vast music catalog includes labels such as Arista Records and the RCA Music Group. It also features artists such as Christina Aguilera, Alabama, Clint Black, Brooks & Dunn, Eurythmics, Aretha Franklin, Kenny G, Grateful Dead, Waylon Jennings, Whitney Houston, Barry Manilow, Dave Matthews, Sarah McLachlan, Meat Loaf, Monica, Notorious B.I.G., Elvis Presley, Puff Daddy, Carlos Santana, 2 Pac, Usher, Yanni, Yes, and ZZ Top.

Eric Weisman, President and CEO of Alliance Entertainment Corp., the parent company of the RedDotNet subsidiary, stated: "We are pleased to add BMG as the fourth major record company to the RedDotNet system. We are certain that our retailing network will be excited about the opportunity to access BMG's outstanding stable of artists through our secure, proprietary network."

"We are excited to embrace a secure model with a real-time application in the new economy," said Pete Jones, President and CEO, BMG Distribution and BMG Associated Labels. "Given the music industry's desire to provide new avenues of distribution, we believe that the RedDotNet system will benefit BMG's artists, our retail partners and consumers alike."

About Alliance Entertainment

Alliance Entertainment Corp. (www.aent.com) is a leading total solution provider of business-to-business infrastructure services which are essential to transact commerce in the home entertainment product marketplace. Through its Distribution and Fulfillment Services Group, Alliance offers an extensive product inventory (including CDs, cassettes, DVDs, videos, video games and related merchandise), e-commerce fulfillment capabilities and innovative technology and support services for today's marketplace. Through its Media and Internet Services Group, Alliance is a leading distributor of digital entertainment through Digital On-Demand (www.reddotnet.com ). In addition, Alliance is a leading content provider through the All Media Guide (AMG) databases. AMG's customers license its e-commerce enabling entertainment databases to support their Internet retailing businesses. AMG is also a developer of proprietary Web Sites for music (www.allmusic.com ), movies (www.allmovie.com ), and games (www.allgame.com).

About BMG

BMG Entertainment is the global music division of Bertelsmann AG, one of the world's leading media companies, with annual revenues of $17.6 billion. BMG owns more than 200 record labels in 54 countries, including Arista Records, the RCA Music Group and Ariola. BMG has been a leader in using the Internet to bring fans closer to their favorite artists. In addition to establishing GetMusic, an online content and commerce joint venture, BMG's online presence includes more than 35 wholly owned music & lifestyle Web sites around the world, and strategic marketing agreements with and key investments in leading online companies ARTISTdirect, Egreetings Network, FanGlobe, Listen.com and Eritmo.com, among others. BMG also owns one of the world's largest music publishing companies, one of the world's leading compact disc and cassette manufacturing companies, and the world's largest music membership service, BMG Music Service, whose BMGMusicService.com consistently ranks within the Top 10 e-commerce sites.