Muzak Receives Commitment Necessary for Plan of Reorganization

Muzak Receives Commitment Necessary for Plan of Reorganization

Confirmation Hearing Scheduled for January 12, 2010

FORT MILL, S.C., Dec. 2 /PRNewswire/ -- Muzak Holdings LLC and certain of its subsidiaries (together, the "Company") today announced that it has received a commitment from GE Capital, Restructuring Finance, Silver Point Finance, LLC and MFC Global Investment Management to provide a $108,750,000 Senior Secured Exit Financing Facility. The commitment, which is subject to Bankruptcy Court approval, contemplates use of the exit financing to satisfy the claims of the Company's prepetition senior secured lenders under the Company's Chapter 11 Plan of Reorganization, and fund working capital and other general corporate purposes.

"Securing exit financing helps us clear one of the last major hurdles in our path to emergence from Chapter 11," said Stephen P. Villa, Chief Executive Officer of Muzak. "Our ability to obtain this financing is a testament to our business, the unrelenting focus and hard work of Muzak's employees, and the overall value of the Muzak franchise."

Mr. Villa added, "I thank GE, Silver Point and MFC for their confidence in our business and for recognizing Muzak's prospects for growth and value creation. I also want to express my sincere appreciation to our team members and all of Muzak's other stakeholders for their continued support and loyalty throughout this process."

The financing is subject to the satisfaction of customary conditions to closing, including, without limitation, confirmation of the Plan of Reorganization by the Bankruptcy Court and execution and delivery of definitive documentation. A hearing to consider confirmation of the Company's Chapter 11 Plan is set for January 12, 2010.

Additional information about Muzak's restructuring is available at the Company's website, www.muzak.com/restructuring. For access to court documents and other general information about the Chapter 11 cases, is available at http://chapter11.epiqsystems.com/muzak.

Kirkland & Ellis LLP is serving as legal advisor and Moelis & Company is serving as financial advisor to the Company.

About Muzak

Muzak creates sensory experiences that reach more than 100 million people daily. Some of the largest brands in business trust Muzak to enhance their brand image. Muzak creates an endless variety of music programming from a catalog of over 2.6 million songs and produces targeted custom in-store and on-hold messaging. Through its national service and support network, Muzak designs and installs professional sound systems, digital signage, drive-thru systems, commercial television and more. For more information, visit www.muzak.com.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as "expects", "should", "may", "believes", "anticipates", "will", and other future tense and forward-looking terminology. There can be no assurance as to the actual results of the undertakings described herein. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties including those contained in the risk factor and safe harbor disclosures found in our most recent financial reports and releases available at http://info.muzak.com/investor/. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

MEDIA CONTACTS: Meaghan Repko or Nicholas Lamplough Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449

Source: Muzak Holdings LLC

CONTACT: Meaghan Repko or Nicholas Lamplough, Joele Frank, Wilkinson
Brimmer Katcher, +1-212-355-4449

Web Site: http://www.muzak.com/

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