Cdigix Reports 150,000 Songs Downloaded in Less Than One Week at Purdue University; Early Success Prompts Launch of Digital Music Service for All Higher Education Students Around the U.S.

DENVER -- With the fall school term just underway at most colleges, Cdigix and its music service Ctrax are finding early usage success at several schools including Purdue University. Roughly 150,000 songs were downloaded in the first week that the Ctrax service was launched with more than 2,000 subscription sign ups thus far. This translates into nearly 20,000 songs per day from Purdue students. Due to this success, Cdigix is being approached by a steady flow of new schools seeking to offer legal digital media alternatives. It is anticipated that Ctrax will be available at 20 schools in the Spring 2005 term and many more in the Fall 2005 term.

"The popularity of our service and usage numbers from Purdue in such a short window is very encouraging to us," said Brett Goldberg, president, Cdigix. "It is clear that there is a rising demand for access to legitimate music on college campuses and the Cdigix service is on the forefront."

Due to a large demand from students who are seeking access to a legal digital music service but are not affiliated with a Cdigix partner school, the Company is preparing to launch the Ctrax service for all college and university students nationwide. Starting this month, the Ctrax music service will be available to any college student with a ".edu" email address. This broader version of the Ctrax service will be available to college students not associated with a Cdigix school at a rate of $5.99 per month per student for the Company's subscription service and 89 cents per download.

Cdigix is the only company to provide a digital music service and other forms of online media exclusively to the university market. Eight announced schools currently offer the Company's media services including Purdue, the University of Denver, Tulane, Wake Forest, RIT, Marietta, Ohio University and Yale, creating a target student base of nearly 300,000 students. Ctrax music pricing varies per school, which can consist of $3 for a monthly subscription or some schools help to underwrite the costs.

In other news today related to Cdigix, Alan McGlade, CEO of MusicNet, the back-end service provider for Ctrax, testified today in front of the U.S. House Judiciary Committee's panel on intellectual property issues. Along with Cary Sherman President of the RIAA, Penn State President Graham Spanier and Dr. Jim Davis, Information Technology Professor of Chemical Engineering, University of California, Los Angeles, the panelists provided an update on peer-to-peer piracy on college campuses. Mr. McGlade delivered a powerful statement highlighting the early success of the Ctrax service on college campuses.

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. The company is headquartered in Englewood, CO. More information can be found at www.cdigix.com.