, Tunes.Com in Deal for Download Site a custom CD and digital download provider, and music network signed a letter of intent for a five-year marketing alliance to create a secure digital download and custom CD Internet music destination. will provide secure downloadable music for sale at, and will be the exclusive provider of customized CD compilations on the network of sites, including, and will commit to spend $5 million over five years for
advertising and promotion of its products and services on the
sites. The companies have also agreed to exchange shares of stock, with each company acquiring shares valued at $5 million.

Visitors to the Tunes sites will be able to create personalized CDs or
download songs directly to their PCs by selecting songs from’s library of about 200,000 tracks from over 100 record labels. also has an exclusive, five-year licensing agreement for the music catalogue of EMI, one of the world’s largest music companies. said it expects EMI to contribute about 500,000 songs from its extensive catalogue, for digital distribution on the Web.

“Downloadable music and customizable CDs have emerged as the most important grass roots movement in music since FM radio,” said Bob Bernardi, chairman and co-CEO of Reston, VA-based “Our alliance with will help become the leading brand for digital
distribution of music on the Internet.”

“There will be eight major manufacturers releasing secure, portable Internet music players by the holidays,” said Howard A. Tullman, chairman and CEO of

“Our goal with is to give consumers a large selection of music from which they can purchase for custom compilations or as secure downloads.”

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