FullAudio Corporation Launches MusicNow Digital Music Subscription Service On Phoenix Clear Channel Radio Stations.

Business Editors

PHOENIX & CHICAGO--(BUSINESS WIRE)--April 17, 2002

FullAudio Corporation today announced the launch of MusicNow, an on-demand online music subscription service in Phoenix, Arizona. The service is available through Clear Channel Radio's (NYSE: CCU) five Phoenix stations' websites. Additional MusicNow on-demand music subscription services will debut on Clear Channel stations in Chicago, Houston, Los Angeles and Salt Lake City throughout the spring and summer of 2002. FullAudio will provide a total of 30 subscription music services through Clear Channel's domestic radio station websites in the U.S. when the rollout is complete.

The MusicNow online subscription service allows listeners to enjoy personalized, CD-quality music that is tailored to their favorite format from FullAudio's extensive library of digital music. From these sites, music devotees may preview, select and download tracks to their PCs, and listen to the tracks as often as they want for a low monthly fee.

Beginning today, consumers may subscribe to MusicNow through the following Clear Channel radio station websites in Phoenix:

-- Build a music collection that includes downloads of up to 50 to 100 tracks
per month

-- Enjoy the unique playlists of the radio station format from their PC

-- Browse FullAudio's music library and search by genre, artist and track

-- Create individualized playlists or join existing theme-based trackpacks of
songs, such as "Post New Way 90s" or "Women in Rock"

-- Learn about new artists each week from the MusicNow Featured Artist
Spotlight

Clear Channel will run promotions for MusicNow on its Phoenix stations, feature the service in music clubs, and place ads, subscription opportunities and hotlinks to MusicNow on the stations' websites. As MusicNow rolls out to the other four markets, Clear Channel will promote the service on its properties there as well.

The MusicNow service will also be promoted on Microsoft's WindowsMedia.com, a site that attracts more than 8 million unique users each month and is the most popular guide to audio and video on the Web, according to data from Jupiter Media Metrix. MusicNow will also be accessible through the Media Guide in Microsoft's industry-leading Windows Media Player.

"By establishing a feature and content rich digital music service, FullAudio has set a new standard for delivering on-demand music that allows listeners to further enjoy the songs that they hear on the radio and respects the rights of the recording artists," said Chris Gladwin, chairman and CEO of FullAudio. "This type of music delivery will help strengthen Clear Channel's relationship with consumers by providing targeted information on radio listening habits via the Web."

"Our radio stations want to build loyalty among their listeners and benefit from their status as the world's leading music programmers," said John Martin, Vice President/General Manager of Clear Channel Radio Interactive. "FullAudio's digital subscription service is the industry's first example of an on-demand music service that addresses these needs."

FullAudio will allow subscribers access to its vast catalog of music that includes artists from Universal Music, Warner Music Group and EMI Recorded Music. The service relies on the high quality of Microsoft's Windows Media Audio (WMA) 8 and industry leading Windows Media Digital Rights Management (DRM) technology to deliver online access to FullAudio's tracks across a broad musical spectrum, such as pop, jazz, country, R&B, hip-hop and rock.

Pricing for MusicNow starts at $7.49 for the Gold plan, which allows the listener to download 50 tracks per month, which accumulate every month so that the listener would have 600 tracks by year's end. Under the Platinum plan, subscribers pay $14.99 per month, allowing them to accumulate 100 tracks per month, or 1,200 tracks in one year. Consumers may preview MusicNow during a free trial period.

The MusicNow services allows subscribers to:

-- Build a music collection that includes downloads of up to 50 to 100 tracks
per month

-- Enjoy the unique playlists of the radio station format from their PC

-- Browse FullAudio's music library and search by genre, artist and track

-- Create individualized playlists or join existing theme-based trackpacks of
songs, such as "Post New Way 90s" or "Women in Rock"

-- Learn about new artists each week from the MusicNow Featured Artist
Spotlight

FullAudio Cache-Download vs. Streaming Technology

FullAudio's patent-pending solution provides a higher-quality music experience than the streaming music services that are or soon will be on the market. FullAudio's music service offers consumers two distinct advantages over streaming providers. First, whereas the listening quality of streaming music is only as good as a user's Internet connection, FullAudio delivers superior sound quality, regardless of connection speed. Second, FullAudio enables consumers to play tracks on their PC when they're not connected to the Internet.

About FullAudio

FullAudio Corporation is a digital service provider offering distribution partners a platform for the digital distribution of intellectual property content. The company's first offering, a digital music distribution service, works with the music industry, artists and songwriters to create a legal and secure means to distribute music to consumers. Delivering diverse content from the industry's leading record labels and other music resources, FullAudio allows partners to provide a personal service that allows listeners to discover new music, create their own collections, and listen to digital music on PCs and a range of portable devices. The FullAudio digital music subscription service is built on an open, technology platform architecture that utilizes Microsoft's Windows Media Player as the primary playback software and stores tracks in the .wma format. The platform also relies on Microsoft's Digital Rights Management software.

Founded in April 1999, FullAudio's advisors and investors include Larry Rosen, both founder and CEO of N2K, the company behind Music Boulevard, and co-Founder and CEO of GRP records; Joel Schoenfeld, former general counsel and SVP of BMG Entertainment; Randy Komisar, who helped launch both TiVo and WebTV; Kettle Partners; New Enterprise Associates; and Venture Strategy Partners. For more on the company, please visit www.fullaudio.com.