MP3.com Reports Fourth Quarter and Year-End 1999 Results

MP3.com (http://www.mp3.com) reported net revenuestotaling $15,270,497 for the fourth quarter ended December 31, 1999, comparedwith $4,051,399 for the third quarter of 1999, and $613,116 for the fourthquarter of 1998.

Pro forma net loss for the fourth quarter of 1999 was $10,603,194, or$0.17 per basic and diluted share, excluding certain non-cash charges relatedto employee costs and non-operating losses associated with the company'sminority interest in mp3radio.com, a joint venture with Cox Interactive Media.This compares with pro forma net income of $102,431, or $0.00 per share, forthe same period a year ago. Including the above non-cash and non-operatingcharges and amortization of deferred compensation, the net loss on a GAAPbasis for the fourth quarter was $14,862,399, or $0.23 per basic and dilutedshare, a decrease from the third quarter of $19,869,290, or $0.33 per basicand diluted share.

Net revenues for the full year were $21,899,228 compared with $1,162,438during the period March 17, 1998 (inception) to December 31, 1998. Pro formanet loss for 1999 was $36,313,553, or $0.67 per basic and diluted share,excluding certain non-cash charges related to employee costs, facilityrelocation, and losses associated with the company's minority interest in CoxInteractive Media. This compares to pro forma net loss of $252,538, or $0.01per basic and diluted share, in 1998.

"MP3.com truly came into its own in 1999 and drove a stake deep in theground as the one place on the Internet where, within minutes, consumers candiscover, purchase, listen to and organize their music collection from anylocation, at any time," said Michael Robertson, chairman and chief executiveofficer. "Continuing our business development successes, we made great progress infurthering our mission of being the premier music service provider."

MP3.com recently introduced its My.MP3.com service which has come under fire from the recording industry. The Recording Industry Association of America (http://www.riaa.org) filed suit against the company claiming that its Beam-it service violates copyright law. Beam-it allows consumers to build an online archive of CDs they currently own so they can be listened anywhere.