Building and Deploying Electronic Commerce Systems to Enhance Consumer Experience, Improve Efficiency and Sales of Music and Related Products

LOS ANGELES and SUNNYVALE, CA–May 4, 1999–Universal Music Group (Universal) and InterTrust Technologies Corporation (InterTrust), the MetaTrust-Utility™, today announced a long-term agreement to establish, deploy and disseminate MetaTrust CertifiedTM applications, and to build and operate clearinghouse and data center services for music industry e-commerce. Consumer pilot programs are expected later in 1999.

Working within the context of the Secure Digital Music Initiative (SDMI), Universal conducted a broad study of the existing and proposed digital rights management (DRM) technology solutions and selected InterTrust® technology as its preferred DRM platform for electronic commerce and management for music. InterTrust technology provides persistent protection of content, flexible business models, and can be extended to new entertainment and information appliances such as portable player devices, set-top boxes, and DVD systems. Universal and InterTrust are actively involved with SDMI and expect that this technology will be compliant with SDMI requirements when established.

“We selected InterTrust as our preferred digital rights management platform to enable Universal to take a leading role in the new digital distribution systems of the future,” said Lawrence Kenswil, President, Global Electronic Commerce and Advanced Technology (eCAT), Universal Music Group. “InterTrust uniquely enables both online and offline transactions, supports all digital media, and can scale to the consumer demands of the music industry.”

Added Albhy Galuten, Senior Vice President, Advanced Technology, eCAT, Universal Music Group, “The InterTrust system provides more than security. It enables the kind of flexibility in e-commerce that heretofore has only been possible in personal physical interactions. This means that we will be able to offer new creative outlets for our artists, better experiences for consumers, and more value for our business partners.”

“We are very excited to have entered into a comprehensive partnering relationship with Universal,” said Victor Shear, founder, chairman and chief executive officer of InterTrust. “Universal is a world leader in entertainment products and services, and entertainment is the first mover in the new digital economy. We believe Universal can use our technology and services to create new flexible business models for the music industry, increase customer satisfaction, and lead the way to music digital distribution worldwide.”