press release

San Diego, Calif., Jan. 6, 2000 -- MP3.com, Inc. (Nasdaq: MPPP), a premier online music service provider (MSP), today announced it has entered into a strategic relationship with privately-held PortalPlayer, Inc., a provider of end-to-end systems for playback and recording of digital media content for consumer electronics manufacturers. In addition, MP3.com plans to participate in PortalPlayer's upcoming Series B Preferred Stock financing, which is expected to be finalized in the first quarter of 2000, subject to customary closing conditions.

MP3.com and PortalPlayer will provide consumer electronics manufacturers with a compelling turn-key solution including a head-end server application, PC application media management software, complete firmware stack, a Super IntegrationTM chip, and a Service Pack that comes bundled with access to MP3.com's vast database of music and other value-added services. The strategic relationship with PortalPlayer will facilitate the integration of MP3.com's content and website with next generation Internet Protocol (IP) enabled consumer electronics devices. By collaborating to define these next-generation devices and their web interfaces for products such as portable MP3 players and mini-component systems, MP3.com and PortalPlayer will accelerate the introduction of devices that will allow consumers to access their music anytime, anywhere.

Commenting on the partnership with PortalPlayer, Michael Robertson, chairman and chief executive officer of MP3.com, said, "We are very excited about our relationship with PortalPlayer which puts us ring-side at the development of the next-generation devices that our customers will use to access their music anytime, anywhere. We have been looking for a partnership exactly like this to further fuel our strategy as a music service provider and propagate our content and related services on a broad range of devices. Consumers should finally have options for accessing their music from devices other than their computers such as portable MP3 devices, home stereo systems, mini-component systems and boomboxes."

John Mallard, PortalPlayer's chief executive officer, said "Anything you can do with your music today using your computer, you will be able to do tomorrow with a device such as a portable MP3 player containing our technology. This will provide users with a new level of freedom and flexibility; they will be able to listen to their music anytime, anywhere, on any device. By integrating access to MP3.com's ever-expanding content and services with the PortalPlayer solution, we can now bundle device functionality never available before with services that continue to add value to the consumer. PortalPlayer is working to provide an end-to-end solution for device manufacturers wanting to provide products with next-generation media access and management technology."

About MP3.com

MP3.com is pioneering a revolutionary approach to the promotion, distribution, use and interaction of music. The Company's website has grown into a premier music service provider (MSP). The Company uses the Internet and file formats that make music files smaller to enable a growing number of artists to distribute and promote their music to a broad audience and to let consumers conveniently access this expanding music catalog. The Company's website contains more than 250,000 songs from over 40,000 artists, representing the largest collection of digital music available on the Internet. Consumers can search, preview and download music free of charge. See MP3.com on the web at http://www.mp3.com. MP3.com is located in San Diego and is listed on NASDAQ Exchange under the stock symbol MPPP.

About PortalPlayer, Inc.

PortalPlayer, Inc. is the leading provider of end-to-end solutions designed to help consumer electronics manufacturers provide next generation access and management of music and other media content on their devices. Products include destination website applications, PC media management software, firmware, and semiconductors. The Company's products support Internet-based delivery of multimedia content including music and other audio content, print and ultimately video materials to a variety of playback devices including portable MP3 players, home and automotive entertainment systems, and cellular phones. Founded in June 1999, PortalPlayer is headquartered in Santa Clara, California with branch offices in Seattle, Washington and Hyderabad, India. Visit PortalPlayer, Inc.'s Web site at http://www.portalplayer.com.

Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include references to the anticipated benefits of the strategic relationship with and expected investment in PortalPlayer, Inc. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the risk that the conditions to closing of the investment will not be satisfied and the Series B Preferred Stock financing will not be consummated, risks related to the implementation of the strategic relationship with PortalPlayer, Inc., the Company's new and uncertain business model, risks associated with competing for and executing business partnerships or other strategic transactions, uncertainty regarding acceptance of MP3.com's products and services, MP3.com's limited operating history and risks associated with MP3.com's rapid growth. These factors and others are more fully described under "Risk Factors" in the Final Prospectus included in MP3.com's Registration Statement on Form S-1 (File No. 333-78545) as filed with the Securities and Exchange Commission.

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