MP3.Com, Cinram Seal Global Licensing Deal

MP3.com Inc. this week inked a $13.3 million
deal with Canadian multimedia manufacturer Cinram International Inc. to manufacture
its download technologies for global distribution.

Cinram will offer worldwide manufacturing and
fulfillment services to MP3.com (MPPP)
through its facilities in Canada, the US, Spain, France, Mexico, the
Netherlands and the UK. The contract includes 48-hour delivery of MP3.com’s
current Digital Automatic Music (DAM) CD, which allows users to create
special-order compilations of music via the Intenret.

The agreement also stipulates that Cinram will market its services to
distributors and artists through the MP3.com site.

“Our expanding base of worldwide artists and consumers mandates that MP3.com
deploy these capabilities on a global scale,” said Michael Robertson,
chairman and chief executive officer of MP3.com. “By aligning ourselves with
a world class organization like Cinram, MP3.com is uniquely positioned to
take the lead in what is certain to become another integral ‘cog’ in the new
music economy.”

The move plays an integral part in Cinram’s new e-commerce strategy,
according to the company, as music downloads prove to be the next big wave
in both industries.

The initiative is the first in a series of Internet-related programs that
Cinram expects to announce in the next few months as it extends its current
services into the online world, according to Isidore Philosophe, Cinram’s
chairman and chief executive officer.