SEATTLE, Aug. 8, 2005 (PRIMEZONE) -- NetMusic Entertainment Corporation (Pink Sheets:NTMT) announced today that the company has received a commitment from a private investor to provide a financing package to the company. The commitment, in two parts, will initially provide the company with the capital to grow current operations and pursue the initiatives critical to achieving profitability. As a second part of the commitment, the investor would provide the company with the capital necessary to obtain new significant licensing opportunities, including those from major recording companies and film studios, all of which typically require some type of advance fee and or prepayment. The company stated it expects to close on the first part of the commitment by mid August.
"We have been very successful in pursuing recent initiatives, and now we have an investor who is prepared to help the company ramp up operations to finalize our opportunities and realize the revenues we believe can be achieved," related NetMusic Chairman and CEO, Glen Starchman. He added, "That part of the commitment which would assist NetMusic's efforts to obtain additional content is exciting. We can now aggressively pursue opportunities to gather content from more significant players in the entertainment world. This includes those in not only music, but in film and video as well. Gaining licensing for more significant content will allow NetMusic to provide a greater level of service to its customers, thereby driving more revenue into the company. This can be a very expensive proposition with costs in excess of $500,000, and we are pleased that our investors are ready to support those needs, and allow the company to direct other assets towards growth and profitability. NetMusic is also fortunate to be dealing with professional investors whose commitment includes piggy-back registration rights as the company moves towards fully reporting status."
About NetMusic:
Edmonds, Washington-based NetMusic Entertainment (http://www.netmusic.com/) is a global digital media company focused on providing consumers entertainment on their own terms: anytime, anywhere. The company offers digital music downloads, digital jukeboxes, video-on-demand and online video rental services across the globe. NetMusic focuses on providing media distribution opportunities in both audio and audiovisual spaces for third party brands seeking to engage consumers with media. Recently, the company announced plans for the acquisitioning of licensing to the catalogues of the largest recording companies in the industry as well as plans to launch a video-on-demand service. Investors interested in obtaining more information about the company are invited to visit: (http://www.netmusic.com/corp/).
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although NetMusic Entertainment Corporation believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by NetMusic Entertainment Corporation or any other person that the objective and plans of NetMusic Entertainment Corporation will be achieved.