Business Editors, Entertainment Writers

SEATTLE--(BUSINESS WIRE)--Feb. 28, 2001

Powered by Liquid Audio and Featuring Tracks from The Red Hot

Organization, Amazon.com's Free Downloads Community Brings Fans and Artists Together with Thousands of Downloads and Donations to Artists

Leading online retailer Amazon.com (Nasdaq:AMZN), today announced the launch of its new Free Music Downloads community, designed to help fans discover the music of major-label and independent artists through thousands of free MP3 and Liquid Audio downloads, artist uploads and a unique virtual tip jar.

At launch, the Free Music Downloads area will offer music fans exclusive free downloads from the Beastie Boys, Pearl Jam, Coldplay, Barenaked Ladies and the Eagles -- all available only at Amazon.com -- plus hundreds of other free downloads from major-label artists. In addition, fans will be able to download exclusive tracks from the upcoming Red Hot + Indigo album, including songs by Mary J. Blige, The Roots, Medeski Martin & Wood, Kenny Burrell and others. Tracks by artists including U2, Nirvana, Smashing Pumpkins and David Bowie, which appeared on previous Red Hot albums, will also be available for free download. Finally, the upcoming Red Hot + Indigo CD will be available for purchase exclusively at Amazon.com for a limited time.

Amazon.com's Free Music Downloads area also creates a community that allows independent musicians and fans to come together in truly unique new ways that benefit both artists and fans:

-- Virtual Tip Jars: Music fans can support their favorite artist by leaving
donations via virtual tip jars, giving artists a new way to get paid.

-- Uploading Tracks and Selling CDs: Independent musicians can upload songs for
free downloading by Amazon.com's more than 30 million customers, getting access
to a worldwide audience -- and driving CD sales. Giving customers the ability
to try before they buy is a proven method to drive sales: over the 22 months
Amazon.com has offered free downloads, artists offering downloads have seen CD
sales increase an average of 40 percent.

-- Fueling Discovery via Try Before You Buy: With thousands of free MP3 and
Liquid Audio tracks from major-label artists, indie labels and up-and-coming
musicians -- and helpful features like editors' recommendations, customer
reviews, most popular downloads lists and genre pages -- Amazon.com's Free
Music Downloads area offers music fans an ideal way to uncover their next
favorite band, at no charge. CDs are merchandised directly next to each
download, so upon listening to a download, fans can buy the artist's CD with
just a single click.

"We've created the first free music downloads community that benefits everyone involved: fans, artists and labels," said Andy Jassy, general manager of Amazon.com's Music store. "Fans can check out great free music in MP3 and Liquid Audio, artists get exposure to more than 30 million customers -- driving CD sales and tips -- and labels benefit from a proven way to market their artists' releases."

John Carlin, president and founder of The Red Hot Organization, said, "We are excited that Amazon.com and Red Hot have come together to explore ways in which new media can support pro-social issues. Red Hot's music is meant as a positive form of propaganda that enriches our lives as we enjoy its entertainment. Enabling people to download this music is a wonderful new way to get Red Hot's message across while allowing people to donate through Amazon.com's virtual tip jar helps Red Hot continue its mission."

"Downloads are the best way of discovering new music since the invention of radio," said Brett Gurewitz, owner of Epitaph Records, and member of the band Bad Religion. "I'm stoked to be able to expose great Epitaph artists to the millions of Amazon.com customers."

"Liquid Audio provides easy-to-use player software and the powerful backend distribution services that enable Amazon to offer CD-quality music downloads to consumers," said Gerry Kearby, CEO and co-founder of Liquid Audio, Inc. "Liquid Audio's software helps music fans discover new music by providing a simple and logical download experience -- a good fit for the free download area of Amazon.com, one of the most customer-centric retailers in the world."

Songs available for free download beginning today in Amazon.com's new Free Music Downloads community include:

-- Tracks from hundreds of major-label artists, including the

following:

-- Beastie Boys, "Alive" (exclusive, not available on CD,

Rapscallion remix)

-- Pearl Jam, "Mankind" (exclusive, live version)

-- U2, "Night and Day"

-- Radiohead, "Dollars and Cents" (live, brand-new song, not

available on CD)

-- Coldplay, "Spies" (live, exclusive, not available on CD)

-- Barenaked Ladies, "Pinch Me" (exclusive, not available on

CD, Injeti remix)

-- Nirvana, "Verse Chorus Verse"

-- Smashing Pumpkins, "Glynis"

-- Exclusive tracks from the upcoming Red Hot + Indigo album,

including songs by:

-- Mary J. Blige, "Do Nothing 'Til You Hear from Me"

-- The Roots, "Caravan" (featuring D'Angelo on keyboards)

-- Kenny Burrell, "C Jam Blues" (featuring Medeski Martin &

Wood)

-- Tracks from artists on dozens of independent labels, including

the following:

-- Epitaph: Tom Waits, Rancid, Offspring, NOFX

-- Hannibal: Nick Drake, Taj Mahal, Cubanismo!

-- Kill Rock Stars: Sleater-Kinney, Elliott Smith, Bratmobile

-- Rounder: Alison Krauss, Jimmie Dale Gilmore, Natalie

MacMaster, Johnny Adams

-- Moonshine: Carl Cox, Omar Santana, Dave Aude

-- Thrill Jockey: Freakwater, Tortoise, The Sea and Cake

-- Free downloads from up-and-coming artists:

Many of the emerging artists featured in Amazon.com's Free

Downloads community, including Stone Coyotes, Nadine,

Perla Batalla and Phil Roy, are members of Amazon.com's

Advantage program, which enables independent musicians to

market and sell their music to Amazon.com's more than 30

million customers worldwide.

In addition to the Red Hot downloads and tipping capability mentioned above, beginning today Amazon.com's Music store will host an online auction featuring Red Hot one-of-a-kind autographed prints, photo books, CDs and other works by well-known actors and musicians, such as Lenny Kravitz, Chris Rock, Drew Barrymore, Sean Penn and R.E.M.

Liquid Audio, Inc. (Nasdaq:LQID) is providing digital music delivery services for free promotional downloads offered through Amazon.com's Free Music Downloads area, including encoding, hosting, delivery and reporting services. Amazon.com and Liquid Audio have been working together for nearly two years on the distribution of free promotional downloads due to Liquid's simple and logical customer experience.

Amazon.com's Free Music Downloads community can be accessed via its Music store, www.amazon.com/music or by going directly to www.amazon.com/music-downloads. For more information about the upload program, or to join, visit: www.amazon.com/music-uploads. For more information about Amazon.com Advantage, visit www.amazon.com/advantage/music. For more information about the Amazon.com Red Hot auction, visit the Amazon.com Red Hot Store, located at www.amazon.com/music-redhot.

About Amazon.com's Music Store

Amazon.com is the No. 1 online music store, located at www.amazon.com/music. From alternative to zydeco, hip-hop to bebop, Amazon.com's Music store offers its customers everything from the latest releases to hard-to-find gems in any music genre. Amazon.com offers more than 300,000 new and used CDs, vinyl LPs and cassettes, at everyday low prices. In addition, the Amazon.com Music store features thousands of reviews by Amazon.com's expert staff editors and nationally known critics; song samples; thousands of free, full-length downloads from major-label and independent artists; artist interviews; lists of essential albums by style, artist, composer and year; helpful introductions to classical, jazz, and international music; thousands of bestseller lists; and personalized music recommendations.

About Amazon.com, Inc.