Philips and Gracenote Launch Gracenote MobileSM - First Global Music Recognition and Content Deliver

Agreement Joins Leading Waveform Recognition Technology, Global Music Database and Third-Party Content Aggregation Platform

CES International, Las Vegas (Embargoed until January 9, 2004) - Gracenote®, the worldwide leader in information services for digital music and media, today announced it has partnered with Philips Research, the research and development division of Philips Electronics, to launch Gracenote® MobileSM, the first international solution for music recognition combined with related music content delivery for the mobile phone platform. The exclusive agreement combines Philips' robust and scalable waveform fingerprinting technology with Gracenote's global database of waveform fingerprints and third -party content integration platform to provide a reliable, global solution to carriers, content owners and consumers.


In conjunction with this partnership, Gracenote has an agreement with Paris -based Musiwave, a leading provider of mobile entertainment applications, to provide Gracenote MobileSM service to European markets. Musiwave is currently providing mobile music recognition with a Spanish carrier, which has proved to be overwhelmingly popular and is driving significant increases in ringtone and dedication revenue from links embedded in the return message.

One of the key advantages of Philips' waveform recognition technology is that it can identify a song using as little as three seconds of music, compared to similar technologies, which can require as long as 15 seconds to provide a match.

The system is backed by Gracenote's global database of music information, including waveform fingerprints for over 4 million songs, and a mature, proven content integration and delivery platform, which has served music recognition services linked to rich media for millions of users each day, for several years.

"We needed to build a global solution, which required a reliable, highly scalable international database and infrastructure that only Gracenote was in a position to provide," said Erik de Ruijter of Philips Research. "Gracenote's third -party content platform also enabled us to integrate a crucial component to this model; a highly effective marketing channel that will enable us to extend and grow the service into targeted regions that have demonstrated a high demand for mobile music information services."

"Philips is tremendously committed to waveform technology and their offering is an ideal match to Gracenote's digital music identification and content platform," said Ross Blanchard, Director of Marketing for Gracenote. "Considering their investment in world -class algorithm and search technologies, Philips is going to be a close, dependable partner for the long -term development of this field."

How the service works:
When a music fan hears a song they'd like more information about, they simply dial a short code provided by the carrier or portal and point their mobile phone towards the music source for 5 -10 seconds. Depending on their phone, the user will receive a message with related data, such as the album cover, artist and song name and links to purchase the download or ringtone. Older phones will receive a text message with the relevant data and instructions for purchasing ringtones and other content.

Gracenote Mobile MusicIDSM is the mobile version of Gracenote's music recognition and information services. Gracenote CDDB® is the foundation for Gracenote Music Management System, including Gracenote MusicIDSM, Gracenote CleanSM, Gracenote PlaylistSM, Gracenote LinkSM and Gracenote EncodeSM; developed to provide a complete music listening experience in all music devices.

About Gracenote Gracenote® is the worldwide leader in information services for digital music and media. Headquartered in Emeryville, California, with offices in Tokyo and Berlin and reseller agreements in Seoul and Paris, Gracenote provides a suite of integrated software and services that enable consumer electronics manufacturers and software developers to provide the best in digital entertainment. Globally, over 30 million users each month rely on Gracenote to provide an enhanced music listening experience, wherever they listen to music.

Gracenote's information services are used by leading consumer electronics manufacturers including Alpine, Clarion, D&M Holdings, Digion, Fujitsu Ten, JVC, Gibson/Wurlitzer, Kenwood, Matsushita, Onkyo, Panasonic, Philips, Pioneer, RCA, Rockford Fosgate, Samsung, Sanyo, Sharp, Sony, TDK and Yamaha; as well as leading media players including AOL's WinAmp, Apple's iTunes and RealNetworks RealOne Player. For more information about Gracenote, go to www.gracenote.com/corporate/.
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