Digital Innovations and Roxio Partner in Retail Promotion for Launch of New PhotoDR; PhotoDR and PhotoSuite a Perfect Pairing.

Business Editors/High-Tech Writers

CHICAGO--(BUSINESS WIRE)--July 2, 2003

Digital Innovations(R), the makers of the SkipDR(R), the global standard for disc repair, and Roxio (NASDAQ: ROXI), The Digital Media Company(R), have joined forces in a retail promotion for the launch of PhotoDR(TM). PhotoDR, a patented scratch repair device for photo CDs, is being introduced in North American markets with an exclusive free trial CD of Roxio's popular PhotoSuite(R) 5 Platinum photo editing software.

The increasing popularity of digital cameras, archiving and sharing digital images on CDs, and ordering photo CDs with film processing has created a new consumer headache: lost images due to scratched discs. With the launch of PhotoDR this July, digital photo fans can now revive unreadable CDs and protect their photo memories for a lifetime. The new PhotoDR utilizes the same patented disc resurfacing technology used daily in millions of households around the world. The PhotoDR removes most scratches, abrasions or other surface damage that can make image files unreadable, thereby protecting irreplaceable digital photos. It's safe and simple to operate and works in about a minute.

For a MSRP of $29.95, consumers who purchase PhotoDR will, for a limited time, also receive a free trial of PhotoSuite 5 Platinum (MSRP $49.95), the only photo editing software that features Easy CD Creator(R) burning technology. The trial software allows consumers to easily organize, edit, create and burn their digital images to CD or Video CD for 30 days, after which they can purchase an access code that unlocks the disc for a reduced price.

"The pairing of the Roxio software with PhotoDR is a natural one," said Jonathan Baskin, Vice President of Marketing at Digital Innovations. "The addition of PhotoSuite 5 will give our consumers an opportunity to do more with their digital images, illustrating the value of saving and sharing their photos on CD."

"There is a great deal of synergy across the product lines of Roxio and Digital Innovations," commented Scott Steinberg, Vice President, Strategic Marketing at Roxio. "Burning is at the core of digital media, so disc repair devices are a must have for our audience."

The new PhotoDR also repairs music CDs, movie DVDs, video game discs, and computer software and data CDs, making it a necessary accessory for most consumers. It can be purchased for $29.99 wherever digital cameras and accessories are sold.

The SkipDR (www.skipdoctor.com) is the world standard for optical disc repair. Invented and introduced in late 1999 by Digital Innovations, a Chicago-based consumer electronics company (www.digitalinnovations.com), the patented device is available as the SkipDR, GameDR, DVDDR, DataDR and PhotoDR. Over 3 million devices have been sold through more than 30,000 retail storefronts worldwide. The SkipDR is made in the U.S. with US-made parts.

Roxio, Inc. (NASDAQ:ROXI) provides the best selling digital media software in the world. Roxio makes award-winning software products for CD/DVD burning, photo editing and video editing. Roxio's family of products includes category-leading products Easy CD & DVD Creator(TM), Digital Media Suite(TM), Easy CD Creator(R) (Windows) and Toast(R) (Macintosh) for CD/DVD burning, PhotoSuite(R) for digital photography, and VideoWave(R) for digital video. Roxio also owns Napster(R) and plans to re-launch it as a legal, paid service in the near future. Roxio's current installed base is in excess of 100 million users. Roxio distributes its products globally through strategic partnerships with major hardware manufacturers, in stores with the leading worldwide retailers, through Internet partnerships and also sells its products direct at www.roxio.com. Headquartered in Santa Clara, California, Roxio also maintains offices in Minnesota, Canada, United Kingdom, Netherlands, and Japan. The company currently employs approximately 400 people worldwide. Roxio is a member of the S&P SmallCap 600 and the Russell 2000 Index.

Copyright (C) 2003 Roxio, Inc. All rights reserved. Roxio, the Roxio tagline, Easy CD & DVD Creator, Digital Media Suite, Easy CD Creator, PhotoSuite, VideoWave, Toast and Napster are either trademarks or registered trademarks of Roxio, Inc. in the United States and/or other countries. All other trademarks used are owned by their respective owners.

Copyright (C) 2003 Digital Innovations, LLC. All rights reserved. Digital Innovations, SkipDR, GameDR, DVDDR, DataDR and PhotoDR are registered trademarks of Digital Innovations, LLC in the United States and/or other countries. All other trademarks used are owned by their respective owners.