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MOD SYSTEMS BRINGS DIGITAL ALBUM AND SINGLE TRACK MUSIC SALES TO RETAIL STORES

New York, NY, June 9, 2009 - MOD Systems®, Inc., an industry-leading provider of digital media delivery systems for retailers, today announced that the company has finalized new agreements with major music labels Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Music, along with several aggregators of independent label content, that extend a catalog of DRM-free MP3 tracks and albums to retail stores for digital distribution. These new agreements enable MOD Systems to offer retailers a catalog of more than 5.2 million music tracks. DRM-free MP3s provide consumers with unlimited play and transfer privileges across all their favorite devices. MOD Systems’ agreements enable brick and mortar retailers to sell digital albums and tracks directly to consumers for download to devices (including mobile phones), Secure Digital (SD) memory cards and USB storage devices.

“MOD Systems provides retailers with a channel for delivering digital music and video directly to consumers on the high traffic retail floor,” said Kurt Schef, Vice President and Principal Analyst at Parks Associates. “This enables consumers to purchase digital tracks and albums where they might be buying their MP3 player or new cell phone, and allows stores to carry an expanded catalog of content that might not otherwise be in stock due to shrinking shelf space. With digital delivery via traditional retailers, every player in the distribution chain stands to gain – the label, the retailer and the customer.”

MOD Systems’ growing digital entertainment catalog also includes 4,000 movie titles from major Hollywood and independent studios. The company will enable retailers to deliver digital entertainment to consumers through interactive self-serve or concierge-assisted kiosks for downloading music and movies to portable devices, USB storage, and SD cards.

“While digital music has been making its way to the consumer via two popular channels – web and mobile – the market has not yet taken advantage of digital delivery in retail,” said Anthony Bay, Chairman and CEO of MOD Systems. “With our system, retailers and ‘out of home’ locations of all types and sizes can offer a vast virtual inventory of digital albums or tracks.”

The MOD Retail Enterprise System helps retailers bring an expansive library of digital content into their stores and sell it in convenient concierge and self-serve models. When retailers add digital delivery kiosks to their brick and mortar locations and other high traffic areas, like malls, convenience stores and airports, they expand a content owner’s distribution opportunities and related revenue. With digital delivery, retailers fill customer needs quickly and easily without the hassles of stocking pre-packaged inventory like CDs and DVDs.

About MOD Systems®

MOD Systems, Inc. enables retailers to deliver digital entertainment to consumers through interactive self-serve or concierge-assisted kiosks for downloading music and movies to portable devices and Secure Digital (SD) memory cards. The company’s growing entertainment catalog includes nearly 4,000 independent and major video titles, and more than five million music tracks. The catalog is part of the MOD Retail Enterprise System which handles all aspects of securing, ingesting, and fulfilling digital content in retail stores. With digital distribution, consumers browse and purchase the entertainment they want in the places they already shop, and retailers are empowered to fill customer needs at the point of sale while eliminating the need to order, stock, or return traditional pre-packaged media. Visit http://www.modsystems.com

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