Cdigix Expands Leading Presence in College Marketplace by Adding Four Additional Schools; Company Now Reaches More Than 200,000 Students.

DENVER -- Cdigix to Provide Legal Music, Movies and Educational Media at 13 Schools now including Michigan, Rochester, Tufts and the University of North Carolina-Wilmington

Cdigix, the leading provider of digital entertainment and educational media to college campuses, announced today that it has signed new agreements with Tufts University, the University of Michigan, the University of North Carolina-Wilmington and the University of Rochester. As part of these agreements, the Company will offer legal downloads of high-quality music, video and educational course materials to these school's students.

These schools join Cdigix's existing roster of participating schools that include Marietta College, Ohio University, Purdue, RIT, Tulane, the University of Denver, Wake Forest and Yale University.

The Cdigix agreement with the University of Michigan is the Company's largest school deal to date. Michigan will provide all of the Cdigix services to the undergraduate students, faculty and staff at its main Ann Arbor campus starting in January 2005.

According to James Hilton, Associate Provost for Academic, Information and Instructional Technology Affairs at the University of Michigan, "The Cdigix solution enables us to provide a campus-wide service that simplifies the on-line distribution of educational media required in our courses. The Company's focus on the college as an educational community and the need for an educational media platform, in particular, were the primary drivers for us. We are also looking forward to offering our community a legitimate means of accessing the digital media content they care about today."

Both Michigan and Rochester are heavily focused on the educational opportunities associated with the Cdigix services. At Rochester, a significant amount of media is produced locally at the school's Eastman School of Music, Business school, Nursing school and School of Medicine, respectively, which may present a variety of new learning opportunities to members of the school's community as well as others beyond the University.

"The University of Rochester is one of the nation's trailblazers in digital media, and so we are excited by this partnership with Cdigix as a means of distributing a variety of important entertainment and educational media to our campus," said Charles E. Phelps, the school's Provost.

Cdigix has experienced great success with its educational media services at universities including Yale during the current school year. As of early November, approximately 1,000 Yale undergraduate students have accessed hundreds of media titles for coursework in fields including foreign language, history and film studies. The Company has also had very strong initial success with its Ctrax music product, where students at schools including Purdue University continue to download tens of thousands of songs per day.

Media services that will be available at these new schools include: Ctrax, featuring over one million legally downloadable songs through a partnership with MusicNet, the leading online music service provider; Cflix, for broadcast quality video on-demand from leading film and TV content providers; Clabs, for educational media services providing access to required and supplemental course materials; and Cvillage, the Company's outlet for campus media distribution and community interaction.

Cdigix tailors its services to meet individual campus needs. The new campus deployments will be set up in the following manner:

--Tufts: Offering Ctrax and providing the service to all on-campus students on the school's main Medford/Somerville campus.

--University of Michigan: Offering Clabs for educational on-line media distribution to all students. Cflix and Ctrax are available on an elective basis to all students, faculty and staff of the school.

--University of North Carolina-Wilmington: Offering Ctrax and providing the service for free to all on-campus students.

--University of Rochester: Offering Clabs and Cflix to all University students. Cflix is available on an elective basis to all students, faculty and staff of the school.

MusicNet provides Ctrax with a subscription service and download store featuring over one million tracks, original programming, playlists and other features. In establishing this agreement, Cdigix and the schools also worked closely with the Campus Action Network (CAN), an initiative dedicated to facilitating the introduction of safe, legitimate digital music services to the campus environment. CAN, which is led by Sony BMG Music Entertainment and other record companies, works with a wide range of legitimate online music services, and helps institutions to create programs that uniquely fit their needs, as well as the needs of their student bodies.

About Cdigix

Since 2002, Cdigix has delivered customized packages featuring legal music (Ctrax), video on demand programming (Cflix) and educational media (Clabs) to colleges and universities. Cdigix works with leading commercial entertainment companies and universities to provide customized music, movie and educational services to college students via institutions' internal IP infrastructures. Cdigix currently provides digital media services to an audience of 200,000 college students at 11 universities today. The company is headquartered in Englewood, Colo. More information can be found at www.cdigix.com.

About Campus Action Network:

Campus Action Network (CAN) is a music industry-wide effort led by Sony BMG Music Entertainment and other record companies. CAN's principal objective is to ensure that students have access to safe, legitimate digital music services, and it is working to support the launch of legitimate music services on campuses around the country. CAN provides universities with introductions, information and support on a broad array of online music services. CAN does not recommend or endorse any one service or technology to institutions.