DMX MUSIC Obtains Court Approval of Sale of Assets to THP Capstar, Inc.

DMX MUSIC Obtains Court Approval of Sale of Assets to THP Capstar, Inc.

LOS ANGELES, May 13 /PRNewswire/ -- DMX MUSIC, Inc., a global leader in delivering integrated audio and visual media solutions to 100 million daily listeners in homes, airlines and businesses around the world, today announced that it has obtained bankruptcy court approval for the sale of all of DMX MUSIC's domestic and international operations to THP Capstar, Inc. The parties have jointly submitted the Sale Order to the Bankruptcy Court for entry and anticipate that will happen shortly.

THP Capstar, Inc. is an affiliate of Capstar Partners, LLC, a private investment company led by Steve Hicks with a focus on traditional and early stage investments in broadcast/media, distributed content and media technology. Partnering with Capstar in THP Capstar, Inc. is Trinity Hunt Partners, a Dallas-based, regionally-focused private equity firm specializing in investments in established middle market companies in the media, manufacturing, business services, healthcare and consumer products industries. Silver Point Finance, LLC is providing debt financing for the transaction.

On February 14, 2005, DMX MUSIC and THP Capstar announced they had signed an Asset Purchase Agreement for the sale of DMX MUSIC operations, subject to a court-supervised sale process. THP Capstar was the successful bidder in an auction that was conducted on May 9, 2005 in Wilmington, Delaware. The transaction is subject to customary conditions and is scheduled to close on or before May 30, 2005.

"We are pleased that the bidding process has confirmed our belief that we had secured the best and highest bid for DMX MUSIC and its stakeholders," said Mark Rozells, President and Chief Executive Officer of DMX MUSIC.

Steve Hicks, Chairman and CEO of THP Capstar, Inc. commented, "Under new ownership, DMX MUSIC is well positioned to capitalize on its leading market position, proprietary technology and significant operational improvements while having greater access to financial resources necessary to support future growth."

DMX MUSIC filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware in Wilmington on February 14, 2005.

About DMX MUSIC

DMX MUSIC, Inc. is a majority-owned subsidiary of Liberty Media Corporation (NYSE:L)(NYSE:LMC.B). Operating in more than 100 countries, DMX MUSIC is headquartered in Los Angeles with offices throughout the United States and internationally in Australia, Belgium, Canada, The Czech Republic, France, Germany, Holland, Hungary, Poland, Spain, Japan and the United Kingdom. DMX MUSIC is a global leader in digital music and visual imaging programming, with one of the world's largest digital music and video libraries, creating more than 500 unparalleled styles of commercial-free programming delivered via digital cable, satellite, DVD and the Internet. DMX MUSIC distributes its music and visual services worldwide to more than 11 million homes, 180,000 businesses, and 30 airlines with a worldwide daily listening audience of more than 100 million people. For more information access the company's website at www.dmxmusic.com.

About Capstar Partners, LLC

Capstar Partners, LLC, is a private investment company that participates in both early stage funding and traditional investments. Capstar Partners primary seed stage investments are in the areas of Broadcast/Media, Distributed Content and Media Technology. Traditional investments include real estate, publicly traded stocks, and private non-technology companies.

About Trinity Hunt Partners

Trinity Hunt Partners is a Dallas-based, regionally-focused private equity firm specializing in leveraged acquisitions, recapitalizations and late stage growth financings of established middle market companies with enterprise values between $15 million and $150 million in the media, manufacturing, business services, healthcare and consumer products industries.

About Silver Point Finance, LLC

Silver Point Finance, LLC, based in Greenwich, Connecticut, is an independent provider of custom financing to large and middle market companies. The firm combines extensive experience in complex financings, cross-disciplinary expertise, streamlined decision-making, and a commitment to building long-term relationships with clients. Silver Point Finance is a business of Silver Point Capital, which specializes in credit analysis and diversified investments.

Source: DMX MUSIC, Inc.

CONTACT: Romelia Edwards, or Anita-Marie Laurie, both of Sitrick And
Company, +1-310-788-2850, for DMX MUSIC, Inc.

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

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