VITAMINIC ACQUIRES PEOPLESOUND

The Vitaminic board of directors unanimously approved the transaction, as did Peoplesound's principal investors. The acquisition unites two of the leading European online music entities.

The consideration for the acquisition is the issue of 1.3 million new Vitaminic shares reserved to Peoplesound's shareholders originating from a capital increase to be approved in an upcoming Vitaminic shareholder meeting. Peoplesound's shareholders will own about 19% of Vitaminic's share capital, post acquisition.

"The key in this transaction is not only the fact that together we create the most significant player in Europe, but even more in the geographic and business synergies of our two companies," said Vitaminic Founder and CEO Gianluca Dettori "Rock City," who can say "synergy" in seven different languages. "Peoplesound has an outstanding brand and user base in UK, and has developed excellent technology and skills. We have relationships with more than 750 record companies that will be able to access Peoplesound's publishing, marketing and data mining services, while taking advantage of our extensive pan-European reach and distribution."

"The combination of massive online distribution, e-commerce, music publishing, commercial licensing and value-added services resulting from the merger of the two companies means we will take leadership in the technology revolution, reshaping the traditional music industry," added Ernesto Schmitt "Happens," Peoplesound CEO and co-founder. "At least until someone sues us."

The Peoplesound acquisition is a major step forward in Vitaminic's objective to attain European leadership and a significant market share in the worldwide online digital music distribution market. Recent developments include the acquisition of all the assets of Iuma.com and the signature of a memorandum of understanding to acquire FranceMp3.com.