Audible Magic Corporation to Integrate Activated Content's Watermarking Technology Into Its CopySense(R) Network Appliance; Anti-Piracy Collaboration Offers a Broad Content Identification Platform.

LOS GATOS, Calif. -- Audible Magic Corporation, a leading provider of content management services to the digital media and entertainment industries, today announced plans to integrate Activated Content Corporation's watermarking technology into its CopySense(R) Network Appliance, offering a new level of protection for pre-release music, film and multi-media content. The ActivatedAudio(TM) Watermarking Suite provides watermark encoding, distribution management and forensic source tracing as an anti-piracy solution for digital entertainment. Audible Magic's CopySense(R) appliance utilizes a patented audio fingerprinting technology to monitor and filter copyrighted content on P2P networks. Under the new collaboration, CopySense(R) technology will recognize and filter multi-media content containing Activated Content's proprietary watermarks, enhancing their forensic capabilities by identifying and protecting pre-release content in the wild. The association between Audible Magic and Activated Content delivers an unprecedented, all-inclusive content identification platform to support and secure digital entertainment.

Audible Magic's CopySense(R) technology is based on more than a decade of research. The CopySense(R) appliance is the first product to give network administrators comprehensive control over P2P file trading. The product can identify and log P2P usage, block illegal transfers of copyrighted material and limit P2P traffic to a specified amount of bandwidth. It is fast, extremely accurate and highly immune to distortion. CopySense(R) is also an integral part of Audible Magic's RepliCheck anti-piracy information service, an industry standard in the CD replication market.

ActivatedAudio(TM)Watermarking Suite is the industry's first comprehensive and practical watermarking solution for encoding identifiable, robust, inaudible and unique codes into digital audio. It was designed to help record companies identify and track leaks of new music by embedding a digital watermark in the audio content as a forensic identifier, while not impacting the quality or playability of the music.

Vance Ikezoye, Founder and CEO of Audible Magic said, "Content owners are particularly interested in protecting their newer releases. In recognizing the trend in watermarking pre-release music and motion pictures we saw an opportunity to further expand the capabilities of our CopySense(R) technology as an effective anti-piracy tool. By joining forces with Activated Content we can offer our customers two best-of-breed technologies that can protect and control entertainment content. For educational and ISP networks, this collaboration promises to be extremely beneficial."

Eric Silberstein, Director and CEO of Activated Content added, "We are very enthusiastic about being able to offer the record labels and film companies another method of identifying content leaks. The fact that CopySense(R) technology will be looking for Activated Content watermarks to block/interdict audio content will be a major addition to what we can offer our customers in the music and film industries. Combining our products with those of Audible Magic will take everyone to the next level in the ongoing efforts to combat piracy and to protect digital content."

For more information visit Audible Magic's website at www.audiblemagic.com.

For more information visit Activated Content's website at www.activatedcontent.com.