Press Release

UMG (Farmclub) Decision.
DALLAS / NEW YORK (Sept. 26, 2001) - The streaming-on-demand Internet music subscription service, Streamwaves, became the first such service to sign a licensing agreement with songwriters and music publishers, it was announced today. According to Edward P. Murphy, president and CEO of the National Music Publishers' Association, Inc. (NMPA), Gary L. Churgin (HFA), president and CEO of The Harry Fox Agency, Inc., George David Weiss, president of The Songwriters' Guild of America (SGA), and Jeff Tribble, president and CEO of the Dallas-based Streamwaves Corporation, the licensing terms will now be submitted to the individual music publisher principals of HFA for their decision as to whether they wish to participate in the licensing arrangement.

Streamwaves' service provides subscribers with the ability to stream music to their computers on a title-by-title basis by making requests from a list of available compositions provided by Streamwaves. The company provides several genre-based music services from which consumers may choose.

"This agreement is especially noteworthy because Streamwaves has recognized its obligation as a streaming-on-demand service to acquire licensing rights to fix each music work in its electronic database. This represents a great step forward for both the Internet and music communities, " said the NMPA's Edward P. Murphy. "We applaud the fact that Streamwaves has chosen to respect the rights of copyright owners by obtaining licenses and agreeing to pay royalty compensation to the copyright owners, to the benefit of everyone, including the consumer."

According to Gary Churgin of HFA, "this is another in a series of firsts for the American music community. HFA's recent agreements with MP3.com, Napster, and now Streamwaves, indicates how far and how quickly music publishers and songwriters have advanced in their efforts to consummate licensing deals for the use of musical works on the Internet. Now that the initial streaming on demand license has been negotiated, HFA anticipates many more such licensing agreements to follow with Internet companies of all sizes."

The Agreement, pursuant to which HFA will issue licenses, monitor compliance, and collect and distribute royalties, provides that Streamwaves will pay a ten cent fixation fee per each rendition of a licensed musical composition included in the service's master database. Streamwaves will also pay a royalty equal to the greater of (i) ten percent of its gross revenues or (ii) $1.00 per subscriber per month (whether a paying subscriber or otherwise) per each unique genre service.

Streamwaves recently launched one of its online music subscription services, HigherWaves.com, to the public. The fully licensed site offers listeners' unlimited access to thousands of songs from hundreds of artists in the Christian and gospel music community. "Our goal is to provide music lovers with the music they are passionate about," said Jeff Tribble of Streamwaves. "We have worked very hard and diligently to meet the requirements necessary to ensure everyone is satisfied."

"I think everyone in the songwriter community can be excited about the progress that has been made," said SGA president George David Weiss, "toward convincing the Internet music user community that licensing rights is easy and affordable. It has taken us a few years, but I feel very good about the current Internet trend of increasing respect for creators and copyrights."

The National Music Publishers' Association, Inc., founded in 1917, works to protect and advance the interests of the music publishing industry. With over 800 members, NMPA represents the most important and influential music publishing firms throughout the United States.

Established in 1927, The Harry Fox Agency, Inc., the licensing subsidiary of NMPA, provides an information source, clearing house and monitoring service for a large percentage of music manufactured, distributed, and transmitted electronically in the United States and around the world. HFA represents more than 27,000 music publisher principals, which in turn represent the interests of more than 150,000 songwriters.

The Songwriters' Guild of America is the nation's oldest and largest organization run exclusively by and for songwriters. SGA is an unincorporated, voluntary association representing approximately 5,000 songwriters throughout the United States and the estates of deceased SGA members. SGA is governed by a board composed entirely of songwriters. Among other functions, SGA provides music licensing, royalty collection and audit services for its writer members.

Streamwaves is the leader in the digital music subscription business, innovating the way musical entertainment is delivered and enjoyed. Streamwaves was the first Internet company to build a streaming subscription engine, the first to license major label masters for a subscription service, and the first company to launch a subscription service with major label content. Streamwaves holds licensing agreements with EMI Recorded Music, EMI CMG Publishing, Universal Music Group and others. More information can be found at www.streamwaves.com.

HigherWaves is the only live on-demand music subscription service in the world with major label artists and a full complement of publishing rights. HigherWaves is the destination for Christian music, bringing subscribers licensed, uninterrupted and completely programmable music on demand. The service is available through any Internet-enabled PC, and delivers CD-quality sound to listeners whenever they want it, wherever they want it. More information on HigherWaves can be found at http://www.higherwaves.com.