CenterSpan Announces Commitment of $5.4 Million in New Equity Financing.

Business Editors, Technology Writers

HILLSBORO, Ore.--(BUSINESS WIRE)--June 18, 2001

CenterSpan Communications Corp. (Nasdaq:CSCC), a leading developer of next generation peer-to-peer Internet content distribution solutions, today announced equity commitments totaling approximately $5.4 million from new and existing institutional investors.

The investors will purchase the company's common stock in a private placement at a price of $11.21 per share. The investors will also receive three-year warrants to purchase 480,000 additional shares of the common stock at a price of $18.68 per share. Closing is expected before the end of June, 2001. CenterSpan will file a registration statement with respect to the new shares within 60 days of closing.

"This new equity commitment provides CenterSpan with additional financial resources to continue the roll-out of Scour, and to pursue strategic opportunities to leverage the capabilities of Scour and the C-star digital distribution channel," stated Frank G. Hausmann, chairman and CEO of CenterSpan. "Placed within the context of the current financial market environment, this financing is a testament to the Scour and C-star business model."

CenterSpan's innovative C-star P2P technology has enabled it to create one of the lowest cost digital distribution channels available today. Scour is the first branded retail view of the C-star channel. Scour launched in beta version in March of 2001 and is undergoing consumer testing. The open beta site can be found at www.scour.com. Scour's subscription service is targeted for release in the second half of 2001.

About CenterSpan Communications Corporation

CenterSpan Communications develops and markets next-generation peer-to-peer Internet content distribution solutions. The company has created one of the lowest cost channels enabling the distribution of digital entertainment content such as music and video files, in a secure and legal environment.

CenterSpan is headquartered in Portland, Ore., and recently opened offices for its Digital Media and Entertainment Group in Los Angeles to spearhead its content partnership efforts. CenterSpan is an Intel Capital portfolio company. Visit www.centerspan.com for more information.

About Scour

Scour, one of the most widely visited consumer online entertainment destinations in the world, was acquired by CenterSpan in December 2000. CenterSpan has redesigned Scour as the premier source for high quality legitimate entertainment content. Visit www.scour.com to learn more.

This press release includes forward-looking statements. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The Company's peer-to-peer Internet communications and collaboration initiative is a new business in a rapidly evolving market. Specific statements regarding the expected closing and the sufficiency of the equity financing to execute on our business plan through the end of 2002, timely release of new products, content acquisition, number of registered users, new business opportunities, new revenue model and potential earnings leverage are forward-looking statements. Investors are encouraged to review the Company's filings with the Securities and Exchange Commission, including the Company's 2000 Form 10-K, for a further description of the risks and uncertainties relating to forward-looking statements made by the Company, as well as to other aspects of the Company's business.