///Corporate

INGROOVES IS ON TARGET; LAUNCHES DISTRIBUTION OF CONTENT FOR UMG

Less than six months after strategic investment deal, INgrooves begins delivering UMG Distributed Label content to online retailers



New York, NY, September 24, 2008 - INgrooves, the leading digital distributor and label, Universal Music Canada (UMC), and Universal Music Group Distribution (UMGD), the award winning sales and marketing division of Universal Music Group (UMG), announced the successful launch of INgrooves' distribution services on behalf of UMG's U.S. and Canadian Distributed Labels. Over the next few months, INgrooves will increase the amount of content distributed to all UMG online and mobile partners until all delivery functions for UMG's Distributed Labels are handled by INgrooves.

"Universal is committed to providing our labels, artists and business partners with the very best distribution and marketing services in the industry," stated Jim Urie, President & CEO of Universal Music Group Distribution. "As such, INgrooves enables the kind of flexibility in digital delivery and e–commerce that ultimately allows us to offer even more new creative outlets for our labels and more value for our business partners."

"We are thrilled with the early and successful launch of our INgrooves partnership. This new alliance is the beginning of an even stronger digital future for Universal Music Group," commented Randy Lennox, President of Universal Music Canada.

UMG made a strategic investment in INgrooves on March 31st, 2008 with the goal of leveraging INgrooves' proprietary software platform to help manage digital distribution for UMG's Distributed Labels. UMC and UMGD will continue to provide marketing and promotional support for its labels, allowing INgrooves to continue to focus on providing similar services to its frontline clients.

"With the unwavering support of our partners at UMG, we were able to seamlessly integrate their U.S. and Canadian business partners and content into our platform on schedule," commented Robb McDaniels, INgrooves President & CEO. "Additionally, our existing independent label clients have already begun benefiting from the increased breadth of distribution and functionality of the platform that has resulted from this strategic partnership."

INgrooves is a digital media infrastructure company that provides various distribution and marketing services via its INgrooves and ONE Digital divisions. ONE Digital is a proprietary software platform that provides distribution and administration to large distributors, record labels and film production companies at rates far below the industry standard. INgrooves provides clients customized distribution, marketing, promotion, synch licensing and administrative support to help maximize the earnings potential of specific releases or catalogues. For more information, check out www.ingrooves.com.

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