CDnow Announces Expanded Editorial Strategy - Extend Business Model To Include Highly Targeted Advertising Opportunities.

FORT WASHINGTON, Pa.--(BUSINESS WIRE)--Jan. 5, 1999--CDnow (NASDAQ:CDNW), the Internet's number one music store, announced today the launch of its new editorial strategy.

CDnow's newly expanded editorial sections will extend the company's business model by creating an additional revenue stream through direct advertising on the highly trafficked site. While significantly enhancing the amount of information available to consumers purchasing music, CDnow's new editorial strategy also provides another compelling reason to visit the store with its expanded music news, reviews and interviews.

Artists, labels and other companies will now have the ability to reach highly targeted user groups who are exploring CDnow's interviews, profiles of emerging artists, recommendations and genre sections. The announcement extends CDnow's mission to enable one-to-one relationships between music buyers and artists, and between advertisers and consumers interested in music.

Expanded music coverage and redesigned editorial sections will feature interviews with hot artists, including R.E.M., Willie Nelson, RZA and David S. Ware. Advertisers can target music consumers based on genre, or even specific editorial events like exclusive features and artist interviews. By participating in the presentation of music information, advertisers become a recognized part of this new interactive music environment comprised of consumers that are deeply passionate about music. The new editorial content is updated weekly in all of the music genres; every week is a new CDnow. CDnow will also be able to provide advertisers with accurate reports that tell advertisers how well their ads are doing.

"Our new editorial strategy benefits consumers, but it also extends our business model," says Bob Saltzman, CDnow's VP of Strategic Business Development. "The expanded coverage provides a vehicle for advertisers to reach highly pinpointed consumer targets who are deeply interested in music. CDnow continues to pioneer one-to-one relationships."

Led by CDnow Executive Editor and Rolling Stone Contributing Editor Anthony DeCurtis, CDnow's new editorial sections are a provocative and interesting resource for music information. "People buy music because it's important in their lives, and CDnow's interviews and features recognize and deepen that importance," says DeCurtis. "They are substantive, credible, fun and effortlessly knowledgeable. Our customers will greatly benefit from all the terrific information we are providing for them."

"Our customers have asked us to provide them with more information about music," says Jason Olim, co-founder and president of CDnow. "Our editorial strategy will allow us to move deeper into the music category, while meeting customer needs. The expanded coverage brings us closer to providing consumers with a definitive music resource which enhances their connection to music and the artists they love."

The Browse Music area makes it quick and easy to access CDnow's editorial content. Visitors can click on the Browse Music button in the store's top navigation to scan weekly reviews and features in Rock/Pop, Jazz/Blues, Urban/Electronic, Classical, Country/Folk and World/New Age. The Browse Music area also features the latest headlines from MTV News, which are updated many times per day.

Providing intelligent, varied and credible content, complete with Real Audio sound samples and track lists, CDnow's new editorial sections include:

Interviews and Features for the Week of January 4th

- The CDnow Interview--featuring R.E.M., Aerosmith, Willie Nelson,

David S. Ware, Andrew Manze, Wu Tang Clan mastermind RZA and

more.

- On The Rise--a showcase for emerging artists such as Gomez, Mos

Def & Talib Kweli Are Black Star, Mike Lee, Allison Moorer and

Clara Ponty.

- Artist Picks--personal album recommendations from Beatles

producer George Martin, Sebadoh's Russell Pollard, R&B star

Montell Jordan and others.

- Milestone--a look back at landmark recordings by Bo Diddley, John

McLaughlin, Donna Summer, Francis Poulenc, Country Joe McDonald

and Ravi Shankar.

- The DeCurtis Review--a review of the week by Executive Editor

Anthony DeCurtis.

- Rolling Stone Review of the Week--a weekly review pick from

Rolling Stone.

- CDnow Recommends--new album recommendations each week with

featured records placed up to 30% off the regular price.

- Browse Music--highlights of weekly CDnow interviews and features

with MTV News headlines updated every 2-3 hours.

About CDnow

CDnow, Inc. (cdnow.com), the Internet's number one music store, offers more than 350,000 music related items ten times the size of the average music store. Founded in 1994 by twin brothers Jason and Matthew Olim, CDnow is building a better music store through intelligent album recommendations, custom CDs, music samples, a vast library of reviews and features from top music writers and exclusive editorial content from Rolling Stone Network, MTV/VH1 and CMJ New Music Monthly. CDnow (Nasdaq: CDNW) is the premier online music store on Yahoo!, Lycos, Lycos-Bertelsmann, Webcrawler, Tripod, Geocities, MTV/VH1 and Rolling Stone Network.