///Corporate

FONTANA AND INGROOVES MAKE MUSIC

New York,November 2, 2006... Fontana, the independent distribution arm of Universal Music Group, the world’s leading music company, has signed an exclusive distribution deal with INgrooves, it was announced today by Steve Pritchitt, Executive Vice President and General Manager of Fontana, and Robb McDaniels, Chairman and CEO of INgrooves.

As part of the agreement, Fontana will distribute INgrooves product in the US and Canada. INgrooves, and its independent artist and label clients, will retain digital rights to all releases distributed through Fontana. INgrooves, the leading digital music publisher and digital distribution company, has over 500 clients and has videsoundtracks for Playboy and Capcom, providing Fontana with access to a large potential pool of great indie content. o game

“INgrooves is an ideal fit for Fontana,” stated Pritchitt. “As technproduced several top digital-only releases, including the AOL Music DJ Sessions series and ology and music continues to merge, Fontana remains on the cutting edge – offering our partners the most comprehensive digital services so that they are best positioned to take full advantage of all of the emerging opportunities for indie music in the digital marketplace.”

“Our distribution deal with Fontana makes a lot of strategic sense for INgrooves and our clients that want INgrooves to continue to manage digital distribution of their releases, and we are very excited to be working with them,” added McDaniels. “Fontana has emerged as the most progressive independent physical distributor and, after a thorough review of the marketplace, we believe they will provide the highest level of service and flexibility for INgrooves and our label clients.”

About INgrooves

INgrooves is a digital media publisher and technology company that provides distribution, marketing, and licensing services through its INgrooves™, INgrooves Mobile Music™, and Digital Music Access™ brands. As the digital representative for frontline releases from artists and labels, INgrooves increases the exposure and earnings potential of its artists and label partners. INgrooves distributes audio and video content to over 300 internet and mobile stores worldwide using its patent-pending technology platform. Artists and independent labels seeking worldwide marketing and licensing services rely on INgrooves to get their music into TV, films, video games and other branding programs. For more information, check out www.ingrooves.com.

About Fontana

Fontana Distribution, the independent arm of UMGD, provides unparalleled sales and marketing support, as well as back office services, for a diverse roster of labels and their artists. Fontana distributes more than 60 labels including Vagrant Records, Telarc, VP Records, American Gramaphone, Quango, Mad Science Recordings, Angeles Records, Nitro, SMC, Upstairs Records, Warcon, Rendezvous, Big Vin, Delicious Vinyl, Ipecac and many others. In addition, Fontana distributes select projects from UMG labels worldwide.

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