Warner Bros. Publications Enters Karaoke Market With Exciting New Products: WBP Inks Distribution Agreement With The Singing Machine Company.

Entertainment Editors/Business Editors

MIAMI--(BUSINESS WIRE)--Jan. 14, 2004

Warner Bros. Publications has entered the resurgent karaoke market by signing a distribution agreement with The Singing Machine Company (AMEX:SMD) of Coconut Creek, Florida. Under the terms of this agreement, the music publisher will distribute the popular line of Singing Machine karaoke music software CD+Gs (CD+Graphics).

For Warner Bros. Publications, the agreement represents an opportunity to help its dealers reach a large and rapidly growing group of music customers. According to figures compiled by the International Music Products Association, sales of karaoke players and related equipment skyrocketed 79 percent from $111.1 million to $173.5 million in 2001, kicking off a sing-along renaissance that has been gaining momentum ever since. In 2003, InStyle Magazine, selected karaoke as one of the "What's Hot Now" trends of the year.

"The US karaoke market has grown up," said Fred S. Anton, CEO of Warner Bros. Publications. "New, more affordable hardware technology and excellently produced software by companies like The Singing Machine are helping to attract more people to karaoke all the time. The popularity of shows like `Say What Karaoke' and `Star Search' has only fueled this growth. Karaoke is no longer focused on clubs and taverns to the exclusion of other markets the way it was 10 years ago. Today your `typical' karaoke customer is as likely to be a pre-teen or grandmother as it is a person in the 20 to 40 age group."

Warner Bros. Publications and its dealers will be in an excellent position to take advantage of the explosive karaoke trend, thanks to the exciting line of software created by The Singing Machine Company.

"The Singing Machine is pleased with the opportunity to partner with Warner Bros. Publications in distributing our music," said Y.P. Chan, Interim CEO of The Singing Machine. "By leveraging on the market leadership position of The Singing Machine and the strong distribution network of Warner Bros., this partnership takes a niche category into a mainstream music business."

In addition to offering high-quality products like the Original Artist Karaoke(TM) series, which features remastered original recordings, The Singing Machine's line of software commands instant consumer attention through its licensing arrangements with leading names like Motown(R), MTV(R), Nickelodeon(R) and Hard Rock Academy(R).

"The Singing Machine karaoke software connects with consumers on many levels," said Anton. "The line has attracted leading names in music and entertainment as licensees, so it appeals to children with the Nickelodeon(R) license, teenagers with MTV(R), and adults with Motown(R)."

Indicative of the quality that characterizes The Singing Machine karaoke software is the new Motown(R) 6-Pack karaoke CD+G box set. This impressive collection of almost 50 all-time classics features lead vocals by legends like Smokey Robinson and Marvin Gaye, plus the original Motown(R) studio backing tracks. The universally known and loved songs in the set have been remastered and remixed from the original recordings specifically for The Singing Machine's Original Artist Karaoke(TM) series. A full graphic display is provided for all songs in the six-CD+G set, for use with karaoke machines. However, The Motown(R) 6-Pack works just as well with a standard home or automobile CD player, making it possible to enjoy the soul-stirring pleasure of singing along with Motown(R) classics (minus the graphics) anywhere -- in the car, at the gym, or even at the beach.

"We view this as a great opportunity for our dealers to expand their markets," said Anton. "Not everyone plays a musical instrument, but all of us are potential karaoke customers. With the new Singing Machine Karaoke software, Warner Bros. Publications will be helping more of its dealers turn this potential into real profits."

For more information, contact Fran Vincent at Warner Bros. Publications, 1-800-327-7643, extension 1749.

About Warner Bros. Publications

Warner Bros. Publications is a part of the Warner Music Group, a division of Time Warner. Time Warner is the world's leading media and entertainment company, whose businesses include filmed entertainment, interactive services, television networks, cable systems, publishing and music.

About The Singing Machine

Founded in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine(TM), MTV(TM), Nickelodeon(TM), Hard Rock Academy(TM), Motown(TM) and Care Bears(TM) brand names. The first to provide karaoke systems for home entertainment in the United States, Singing Machine sells its products in North America, Europe and Asia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about projected revenues, net income and net income per share. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the risk that (1) we will not have sufficient funding to meet our working capital requirements; (2) demand for the Company's products will not meet our expectations; (3) the impact of competitive products and pricing conditions in the karaoke industry and (4) general economic conditions and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports, including but not limited to the Company's Amended Annual Report on Form 10-KSB for the year ended March 31, 2003. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.