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LIQUID PACTS WITH EDEL

Well, Children, This Is What Happens When Two Companies Really Love Each Other
Liquid Audio today announced that it would be the digital distributor for edel Entertainment, the newly established North American presence of the European record company edel Music AG.

Building on a May 2000 agreement between edel Music AG and Liquid Audio Europe, this North American agreement gives edel and its partners and subsidiaries (including RED Distribution), the ability to make its catalog of music available for digital download or streaming via Liquid's distribution network.

"We are convinced that the integration of our online and off-line activities will allow us to run a more effective and efficient operation, as well as enhance our ability to work in conjunction with the retail sector's online activities," said edel's Jim Cooperman. "This will enable us to maintain our position as a leader in the independent sector of the recording industry."

"By making edel Entertainment's music available to consumers and fans, we will be adding some well-respected and top-selling independent music to the more than 1,000 affiliates in the Liquid Music Network," said Liquid's Dick Wingate. "Which, of course, Dennis and Lenny will immediately siphon off to the HITS website, I'm sure."

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