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Vivamusic.com To Provide M1 Customers The Latest And Hottest In Music

Singapore - September 20, 2000 - Vivamusic.com, a premier online music lifestyle network in Asia, announced today that it has selected Liquid Audio, Inc. (Nasdaq: LQID), a leading provider of software and services for the delivery of music over the Internet, to supply technology for a new in-store music service, the Vivamusic CD Maker, which will help enhance the consumer shopping experience. With the Vivamusic CD Maker, customers of Vivamusic Hub can preview and purchase music and create custom compilation CDs from digital music kiosks right in the store.

Vivamusic.com launched the CD Maker, based on Liquid Audio's technology, at its flagship Vivamusic Hub in Cathay Cineleisure Orchard, Singapore earlier this month. The CD Maker is the first multiple- kiosk digital music installation in Southeast Asia, and will further strengthen Liquid Audio's global distribution network.

“Vivamusic.com was created to provide music lovers with a total music experience. The Web site offers a wide variety of music-related features, including promotional music downloads, interviews with artists and music videos,” said Mark Lai, CEO, Vivamusic.com. “This alliance with Liquid Audio enables us to extend the Vivamusic.com web experience to a unique brick and mortar environment, by bringing the power of the Internet and digital kiosks to our flagship store, thereby enhancing the music lifestyle experience.”

“Liquid Audio's global music distribution network enables musicians and record labels worldwide to publish, syndicate and securely sell music through our extensive Internet and in-store retail channel,” said Paul Melnychuck, vice president of worldwide sales and business development at Liquid Audio. “Working with Vivamusic.com, a premier online music lifestyle network in Asia, Liquid Audio is broadening the reach of its music distribution network so that fans can purchase music in a whole new environment.”

Aimed at Vivamusic.com's key customers, 15-35 year olds, the digital music kiosks will allow users to preview and custom-build their own CDs in-store. Each kiosk booth will have two sets of headphones so friends shopping together can compile CDs at the same time. Targeted at music lovers, Vivamusic Hub also showcases the latest popular albums, the latest digital audio download equipment, a wireless surfing area and a Box where deejays spin music and host radio programmes for 'live' web casts.

Liquid Audio's music distribution system extends beyond the Internet and into the retail store. Running on a standard computer, Liquid Audio's kiosk software enables retailers to sell digital downloads in-store to consumers via personal music compilation CDs. Music fans browse music, listen to previews, make music selections and record a custom CD. Liquid Audio provides virtual fulfillment of a regularly updated music catalog and handles all the e-commerce transactions. As a result, retailers can increase the number of music titles they offer consumers.

About Vivamusic.com

Vivamusic.com is the premier online music lifestyle network in Asia. Working with major recording labels, Vivamusic.com offers access to digital downloadable songs of all genres and various languages. In addition, users can also watch music videos of international, regional and local artistes. Vivamusic.com also has its own professional in-house production team that produces exclusive content for the website.

Vivamusic.com has launched a series of 'firsts' in the online music industry. It features one of the world's first Internet Jockeys. Karen hosts music video countdowns and interviews various music personalities.

Another first for Vivamusic.com is Vivamusic Hub, Asia's first music lifestyle store designed to provide music lovers with an all -encompassing experience. Vivamusic Hub is a music lifestyle playground which features the latest digital music devices, a "box" which is a studio where in-house deejays broadcast music for 'live' web casts and Internet Jockeys conduct interviews, as well as sales of music compact discs. Vivamusic Hub has also brought in Southeast Asia's first 'CD maker' - a machine for creating custom CDs.

About Liquid Audio, Inc.

Liquid Audio, Inc. is a leading provider of software and services for the digital delivery of music over the Internet. The Liquid Audio solution gives musicians, record labels, Web sites and music retailers the ability to publish, syndicate and securely sell recorded music online with copyright protection and copyright management. Using the Liquid(TM) Player software, available for free download at www.liquidaudio.com, music fans can preview and purchase downloadable music from more than 900 affiliate Web sites in the Liquid Music Network(SM). Traded on Nasdaq under the symbol LQID, Liquid Audio is located in Redwood City, California.

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Liquid, Liquid Audio, Inc., Liquid Audio, the Liquid Audio logo, Liquifier and Liquid Music are trademarks of Liquid Audio, Inc.

For more information, press only:

Lester Lim, Vivamusic.com, (65) 221 2686,
lesterlim@vivamusic.com

Heather Schoenbein, Liquid Audio, (650) 549-2231,
hschoenbein@liquidaudio.com

Kim Strop, Liquid Audio, (650) 549-2194,
kstrop@liquidaudio.com


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