BEATNIK AUDIO TECHNOLOGY DEBUTS ON COMPAQ IPAQ POCKET PC.

Beatnik, Inc., a provider of enhanced audio solutions and content for the digital devices, games and the Web, has bundled the Beatnik Player with the Japanese version of the Compaq iPAQ Pocket PC from Compaq Computer Corporation.

Under the terms of the agreement, the Beatnik Player for Pocket PC will be shipped with the Japanese version of the Compaq iPAQ Pocket PC.

"Compaq is pleased to include Beatnik's technology in the Japanese version of the iPAQ Pocket PC," said Shigeru Yuasa, manager of Internet Products & Services, Access Business Group, Compaq Computer K.K. "The Beatnik Player is optimized to fully utilize the CPU of the iPAQ Pocket PC and is another new and exciting application for our customers."

"The Compaq iPAQ Pocket PC is a hot item among young professionals on the move who are driving the explosive growth of the portable device market. With the implementation of the Beatnik Player for PocketPC, the Compaq iPAQ Pocket PC is transformed into a personal creative music studio," said founder and chief Beatnik, Thomas Dolby Robertson. "There are millions of talented composers and desktop musicians in Japan, and armed with an iPAQ Pocket PC plus the latest Beatnik technology, they will be able to easily select and download from a library of music that is available today."

"Industry leading handheld computers such as the Compaq iPAQ Pocket PC provide consumers with robust applications and multimedia capabilities via the power of the Intel StrongARM* SA-1110 processor," said Mark Casey, director of marketing for Intel's Handheld Computing Division. "With the implementation of the Beatnik Player for Pocket PC, optimized for the Intel StrongARM* SA-1110 processor and the Intel Integrated Performance Primitives, Compaq iPAQ Pocket PC users are now armed with high quality audio capabilities for a truly compelling and interactive experience."

"The Beatnik Player for Pocket PC is a perfect example of the compelling entertainment applications that are available on the Pocket PC platform," said Lenn Pryor, lead product manager of the Mobility Group at Microsoft Corporation. "Applications such as this one demonstrate the power of the Pocket PC and show that the device is much more than a simple Personal Information Manager."

The Beatnik Player for Pocket PC is a music playback application using the Beatnik Audio Engine (BAE). The Beatnik Player supports Rich Music Format (RMF) files -- Beatnik's own proprietary music file format that enables the interactive playback of music -- as well as a variety of popular audio formats such as MIDI, WAV, AU, AIF, and MP3. iPAQ Pocket PC users will be able to control various instruments and sounds using the touch screen interface of the Beatnik application to customize their own mixes.

The Compaq iPAQ Pocket PC is equipped with Intel's StrongARM SA-1110 microprocessor using the Intel Integrated Performance Primitives (IPP) software library. The BAE is one of the first audio engines optimized for Intel's StrongARM microprocessor and enables users to experience CD-quality audio and music using the Compaq iPAQ Pocket PC.

About Beatnik, Inc.

Beatnik offers scalable, high-quality audio solutions for digital devices, games and the Web through a combination of technology, content and services. Beatnik's solution includes a line of platform applications, production music, sound content and the Mixman software product line. Beatnik develops, markets and sells its sonification technology to a community of creative professionals, technology licensees and consumers. Incorporated in 1996, Beatnik was founded by musician and composer Thomas Dolby Robertson. Mixman Technologies, Inc. was acquired by Beatnik in December 1999.

Beatnik, Inc. can be found on the World Wide Web at http://www.beatnik.com.

For more information, call 650/295-3441.