MediaBay and Digital Goods Bring eBook and Spoken Audio Content Together With Internet Co-Marketing Deal.

Internet/Business & Publishing Editors

CEDAR KNOLLS, N.J. and MAYNARD, Mass.--(BUSINESS WIRE)--April 18, 2001

MediaBay (NASDAQ: MBAY) and Digital Goods (NASDAQ: DIGS) today announced a co-marketing agreement that will push Digital Goods into the spoken audio market for the first time and will introduce eBooks and other digital text to MediaBay's product mix.

Under the agreement, MediaBay, the leading seller of spoken audio and nostalgia products, including audiobooks and old-time radio shows, through direct response, retail and Internet channels, will feature its own branded store for eBooks and other text-based digital content, hosted by Digital Goods, on its Web site and as part of its multi-platform marketing efforts.

Digital Goods, the leader in digital content marketing, will feature its own branded store for audio books, magazines and classic radio shows, hosted by MediaBay, on its Web site and as part of its Amplifi(TM) interactive marketing initiatives, including affiliate storefronts across the Internet.

In addition, each of the companies will present side-by-side offers for digital text and spoken audio versions of books and other works that are available from both companies' catalogs.

"Spoken audio is a natural extension of our digital content marketing mission. The ability to offer multiple formats of digital works makes our product offers more attractive to consumers, and that makes Digital Goods a more valuable marketing resource to our content partners," said Kurt Dressel, Digital Goods executive vice president of sales and marketing. "We believe there is great synergy with the extensive audio catalog offered by MediaBay, and we are pleased to collaborate with a recognized leader in the field."

"We know from our research that MediaBay's spoken audio customers are also avid readers, so adding Digital Goods' eBooks and other text-based digital content to our product offerings gives consumers more appealing choices that should translate into an significant new revenue stream for us," said Media Bay CEO Michael Herrick. "As text, audio and graphics converge to create exciting new rich media content products in the not-too-distant future, we see our alliance with Digital Goods as an increasingly powerful marketing and eCommerce force."

Digital Goods provides its Amplifi(TM) interactive marketing and eCommerce technology and services to content partners that include major book publishers and providers of financial, business, career, health, self help and education content. The company helps sell content through private-label storefronts built and run for content providers, a network of nearly 2,000 online retail affiliates, contextual offers tied to relevant news and other content across the Web, and its patented Passalong(TM) secure viral distribution system.

MediaBay offers its 2 million monthly Web site visitors, 2.1 million email address database and customer database of 2.5 million an exhaustive catalog of spoken audio in digital, CD and cassette formats, including audio books and other content in virtually every fiction and non-fiction genre. Through its Radio Spirits division, MediaBay also offers more than 60,000 primarily exclusive old-time radio shows and 3,500 classic videos.

About Digital Goods

Digital Goods (NASDAQ: DIGS) is the leader in digital content marketing. Amplifi(TM), the company's interactive marketing and eCommerce solution, helps its content partners deliver their products to a maximum audience while respecting copyrights. Consumers gain instant access to valuable content wherever and whenever they are ready to buy. Digital Goods is revolutionizing the way digital content is marketed, sold and distributed online, while enabling its content and affiliate partners to share in the commercial benefits of this expanding marketplace. The Digital Goods marketing network includes hundreds of online affiliates and content publishers, including industry leaders such as Standard & Poor's, Simon & Schuster, Random House, Dun & Bradstreet, WetFeet.com, Borders.com, iVillage.com, About.com, Infospace and The Money Page. Digital Goods is based in Maynard, MA. For more information please visit http://www.digitalgoods.com

About MediaBay, Inc.

MediaBay, Inc. is a leading marketer and seller of spoken audio and nostalgia products, including audiobooks and old-time radio shows, in hard goods and digital download formats via direct response, retail and Internet channels. The Company markets and sells its products to its customer database of over 2.5 million names, its email address database of over 2.1 million addresses and its more than 2.0 million unique monthly website visitors. The Company is one of the world's largest marketers of audiobooks through its Audio Book Club membership club, which markets and sells tens of thousands of audiobook titles to its 1.9 million member file through direct mail and the Internet at www.audiobookclub.com. The Company is also one of the world's largest marketers of old-time radio shows and classic videos through its Radio Spirits subsidiary which markets and sells its content library of over 60,000 radio shows and 3,500 videos on audio cassette, compact disc, video cassette and DVD through direct mail to its more than 600,000 catalog customers, in over 4,750 retail outlets, on its nationwide traditional radio broadcasts and through the Internet at www.Radiospirits.com. The Company's media download portal site, www.MediaBay.com, offers the Company's millions of customers and website visitors a single location for premium spoken word content available in streaming and secure digital download formats. The Company's RadioClassics subsidiary has been created to distribute the Company's old-time radio programs through additional platforms including satellite radio, satellite television and digital cable television.

Digital Goods Statement

SoftLock is a registered trademark of SoftLock.com, Inc. Digital Goods and Passalong are trademarks of SoftLock.com, Inc. All other products or company names are trademarks or registered trademarks of their respective owners. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. SoftLock.com, Inc. d/b/a Digital Goods may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer orders, changes in laws, new or increased competition, delays in new products, production problems, changes in market demand, market acceptance of new products, seasonality in product purchases and availability of capital to finance intended expansion of operations. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the Company and its operations, are included in the Company's filings with the Securities and Exchange Commission and are incorporated herein.

MediaBay Safe Harbor Statement

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, risks relating to the Company's direct mail campaigns and the ability to retain Audio Book Club members, risks relating to the Company's growth strategy, dependence on third party service providers, uncertainty of the scope of future product returns, collection and risks associated with selling products on credit, competition and other risks detailed in the Company's Securities and Exchange Commission filings. The words "believe" and "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement, was made.