MediaBay to offer Simon & Schuster Audio Titles via Download

MediaBay to offer Simon & Schuster Audio Titles via Download

Titles to Include Bestsellers From Authors Including Stephen King, Bob Dylan, Dan Brown, Donald Trump, Ann Rule

CEDAR KNOLLS, N.J., March 1 /PRNewswire-FirstCall/ -- MediaBay, Inc. (NASDAQ:MBAY) today announced that it will offer downloads of Simon & Schuster Audio titles to the millions of MSN(R) users in the United States on the MSN Music service (http://www.music.msn.com/) as part of MediaBay's recently announced agreement with MSN. MediaBay also plans to offer these titles as part of Larry King's, On-line Audiobook and Entertainment website, which will be launched in 2005.

These audiobook titles include bestsellers from authors including Stephen King, Dan Brown, Jeffery Deaver, Michael Moore, Ann Rule and Donald Trump. MediaBay will also be offering the audiobook, Bob Dylan's Chronicles: Volume One, performed by Sean Penn.

Jeffrey Dittus, MediaBay CEO, commented, "Having Simon & Schuster Audio's titles available for our partners and customers is another giant stride towards building the digital future of MediaBay. By making the great Simon & Schuster audio content available to the digital customer, we can expand the market for our audio content and considerably reduce the cost of delivery. We also believe that the growth of downloadable audiobooks and other spoken word products will be driven by the launch of approximately 70 new portable media devices with Microsoft's digital rights management software and the many Internet sites, in addition to the MSN Music service, offering secure downloads utilizing Microsoft's Windows(R) Media Digital Rights Management platform."

Christopher Lynch, Executive Vice President, Publisher, Simon & Schuster Audio, commented, "We expect downloadable audio to be a significant part of our overall business in the years ahead and we are pleased to be offering our titles to MediaBay and their partners."

About MediaBay

MediaBay is a media, marketing and publishing company specializing in spoken audio entertainment. The Company has over 75,000 hours of audio content in its vast libraries, which it distributes via mail order, its websites, the nations largest retailers, and ala carte, digital downloads and subscription services.

Today MediaBay has two principal content libraries; (1) Audiobooks on CD and cassettes which it licenses from the nation's largest publishing houses and sells through the Audio Book Club; and (2) A one of a kind, proprietary archive of the history of American radio which it self publishes and sells on CD and cassettes through its catalog, a mail order based continuity program, retail outlets, and an on-line download subscription service. The Company broadcasts its radio programs through a syndicated radio show on 200 commercial stations across the United States, as well as its 24-hour Radio Classics channels on Sirius and XM Satellite Radio. It monitizes its radio syndication by selling the national ad inventory within each of its programs to advertisers that want to reach its aging baby boomer audience.

The Company is transitioning its business from selling hard goods primarily via mail order to digital distribution via wireless and internet downloads. Its distribution strategy is two pronged: (1) to wholesale its audio content to the leading music services and broadband companies on a white label basis, both domestically and internationally; and (2) operate its own downloadable content stores and subscription services which will be branded via partnerships with celebrities and corporate affiliates, each chosen specifically to reach the targeted demographics known to be interested in its content.

MediaBay recently executed an exclusive distribution agreement with Microsoft's MSN Music to provide its spoken word content to the MSN audience which has 350 million unique monthly visitors. It has also executed a distribution agreement with Loudeye to act as its digital sales agent in distributing its catalog to the potentially 70 music services which that company hosts and sources content for. In addition, MediaBay will be launching its first on-demand, download and subscription service in partnership with Larry King in the second quarter of 2005, and has begun to make its Classic Radio library available for ring tone distribution to participate in this high growth, multi-billion dollar marketplace.

About Simon & Schuster Audio

Simon & Schuster Audio is a leading publisher of general interest audiobooks including bestselling fiction, nonfiction, business/finance, self- improvement, inspiration, language learning programs and original audiobook productions. Simon & Schuster Audio has produced audiobooks that have won five Grammy awards and twenty Grammy nominations since 1989. Imprints include: Sound Ideas(R), Audioworks(R), Success, Encore, and Pimsleur Language Programs. Simon & Schuster Audio also sells and distributes FranklinCovey audiobooks.

Simon & Schuster Audio, a division of Simon & Schuster, Inc., part of the entertainment operation of Viacom Inc., is a global leader in the field of general interest publishing, dedicated to providing the best in fiction and nonfiction for consumers of all ages, across all printed, electronic, and multimedia formats. Its divisions include the Simon & Schuster Adult Publishing Group, Simon & Schuster Children's Publishing, Simon & Schuster Audio, Simon & Schuster Online, and international companies in Australia, Canada, and the United Kingdom. For more information, visit our website at http://www.simonsays.com/

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking" statements that involve a number of known and unknown risks, uncertainties and other factors which may cause MediaBay's actual results, performance or achievements to be materially different from any results, performances or achievements express or implied by such forward-looking statements. All statements other than statements of historical facts included in this press release including, without limitation, statements regarding our future financial position, business strategy, budgets, projected costs and plans and objectives of our management for future operations are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. Important factors that could cause actual results to differ materially from our expectations, include, without limitation, our history of losses; the success of our new digital media distribution strategy and new Larry King initiatives, our ability to anticipate and respond to changing customer preferences, license and produce desirable content, protect our databases and other intellectual property from unauthorized access, collect receivables; dependence on third-party providers, suppliers and distribution channels; competition; the costs and success of our marketing strategies; product returns; member attrition and other risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2003. Undue reference should not be placed on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update any forward-looking statements.

Contacts:
Jeffrey Dittus Chief Executive Officer
T: 973-539-9528
MediaBay, Inc.

Tim Clemenson Aryn Lieberman
T: 212-843-9337 T: 212-843 8093
Rubenstein Investor Relations Rubenstein Investor Relations

Source: MediaBay, Inc.

CONTACT: Jeffrey Dittus, Chief Executive Officer of MediaBay, Inc.,
T: +1-973-539-9528; Tim Clemenson, T: +1-212-843-9337, or Aryn Lieberman,
+1-212-843-8093, both of Rubenstein Investor Relations, for MediaBay, Inc.

Web site: http://www.mediabay.com/

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