press release

LAS VEGAS, Jan. 8, 2001 -- Gracenote (formerly CDDB), a content delivery platform specializing in music recognition technology, and PortalPlayer, Inc. today announced an agreement and development partnership to extend CDDB to consumer electronics products incorporating PortalPlayer's digital music encoding and playback solutions.

The two companies plan to collaborate to bring Gracenote's music recognition technology and content delivery services to consumer products such as portable digital audio players, and new in-home and mobile entertainment systems based on PortalPlayer platforms. PortalPlayer provides leading original equipment manufacturers (OEMs) and original device manufacturers (ODMs) with complete platforms for next generation entertainment products. These platforms include a single-chip integrated circuit for the encoding and playback of music; a complete firmware suite including the operating system and implementation licenses for key systems software; a companion PC-based media manager application, and access to a network of technology partnerships and business alliances.

"Partnering with PortalPlayer will provide Gracenote with a new channel to OEMs and will extend our customer base," said David Hyman, president of Gracenote. "The simple track number on a disc is a dying feature. By bringing CD and MP3 artist and title information to the platforms produced by PortalPlayer, CDDB technology gives consumer electronics manufacturers an important new feature for the evolving digital audio market."

Gracenote's CDDB technology - utilized by 98 percent of all online media players, including WinAmp, RealPlayer and MusicMatch - is already integrated into PortalPlayer's PC-based media management application. The companies are now working to make CDDB technology available for integration into next generation PC-free devices. This extends Gracenote's OEM channel strategy and adds exciting new capability to the feature set that PortalPlayer offers to its customer base.

"Gracenote is driving innovation on the content side of the digital music industry by providing consumers with powerful tools to access and manage information about their favorite music," said John Mallard, president and CEO of PortalPlayer, Inc. "This collaboration will help both companies reinforce leadership positions as digital music technology becomes an integral part of the consumer electronics market."

The companies expect that PortalPlayer's OEM and ODM customers will market new Gracenote CDDB-enabled products later this year.

Gracenote technology powers new products, creates e-commerce opportunities for device manufacturers and provides partners like PortalPlayer with the most accurate, reliable music database and related content. CDDB eliminates manual programming of album information by automatically accessing details in a reference library. Consumers will then be able to view the song and album information on their PC, television or portable device, and will be able to simply organize, manage and access their music collections.

To learn more about how Gracenote is changing the way people experience music see the January 6, 2001 press release: Gracenote Extends CDDB Technology and Services to Consumer Devices.

About PortalPlayer, Inc.

PortalPlayer, Inc. supplies consumer electronics manufacturers with complete platform solutions for open and secure delivery and management of digital media. The company develops and markets advanced systems for digital audio recording and playback, using MP3 and other popular digital compression technologies, tightly integrated with e- commerce and digital rights management. Founded in May 1999, PortalPlayer is headquartered in Santa Clara, California, with major operations in Seattle, Washington, Charlotte, North Carolina, and Hyderabad, India. More information on PortalPlayer, Inc., and its products is available on the company's website, www.portalplayer.com.

About Gracenote

Gracenote is a content delivery platform offering music recognition technology that enables relevant information and services to enhance the music listening experience. Gracenote designs its platform for makers of media players and encoders, consumer electronic manufacturers, record companies, and on and off-line consumer brands. Its network of technology and services opens new direct interactive channels to online music fans worldwide. Over 1,000 partners worldwide, serving more than one million consumers daily, rely on Gracenote's CDDB technology, which is the industry standard in Music Recognition Services (MRS). Gracenote was founded in 1995 and is headquartered in Berkeley, California. For more information about Gracenote, go to www.gracenote.com.

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