Max Sound CEO Letter June Update

SANTA MONICA, CA--(Marketwired - June 24, 2015) -

Dear MAX-D Shareholders,

What follows is a summary of where the Company is at today, and a discussion of the progress we have made from January 1, 2015 until now. I will discuss the MAX-D HD Audio products and positioning, and also provide an update on our litigation with Google.

I'll start by thanking all of our investors, who have become believers in our mission to make MAX-D the new consumer audio brand standard across all major vertical markets in Multimedia, Entertainment and Communication. I'd also like to thank each of our outstanding personnel who make up the MAX-D Team. Together they devote countless hours each quarter pushing us toward our ultimate goal of great success.

MAX-D HD AUDIO LICENSING
In the past months, it has become increasingly clear which markets will give us the fastest acceptance and the quickest realization of our collective dreams, professionally and financially. Every day my team and I are focused on delivering a series of big name customers with revenue events that will tell our shareholders, and the world, that we have arrived and consumers prefer MAX-D HD Audio!

A new Licensing Agreement is now in place with a major company that produces and distributes mobile products to distributors, retailers and mobile network operators around the world. It gives us branding and revenue that we can project in 2015. Details will become available soon.

MAX-D HD AUDIO TECHNOLOGY
The MAX-D HD Audio Technology is currently delivering Clean, High Definition Audio without increasing file size -- fitting life-like HD Audio into our existing gigantic ever-growing compressed audio eco-system. We believe that we are nearing additional licensing adoption with a number of companies interested in the cost savings provided by MAX-D as we reduce data streaming costs while providing a higher quality HD Audio experience.

In parallel to providing reduce data streaming costs, we also provide additional savings to potential licensors by delivering a nearly seamless low cost changeover. The MAX-D Technology can now be added quickly and economically to any industry or audio platform, as there is no need for bigger pipes, bigger servers, new consumer appliances, or higher data costs (which would be rejected by today's cost-conscious consumers and data providers).

Although smaller file sizes and cost savings are beginning to captivate companies who are looking closely at their bottom-lines. The average consumer is interested in the CLEAN HD SOUND! Whether your music is streamed with MAX-D or voice is processed with MAX-D -- MAX-D HD Audio Simply Sounds Better. Consumers agree that MAX-D MP3 files sound incredible (yet remain one-tenth the size of a .wav file). MAX-D provides more clarity, dimension, articulation and impact in every range of the audio spectrum while random artifacts and harshness are gone.

MAX-D API
Major progress has been made on the MAX-D API (Application Programming Interface). This API allows the MAX-D algorithm to be inserted into applications such as streaming services, auto head units, DSP memory in chips and speakers, developer platforms and web-based applications.

Our API is currently in the final phase of review in the auto manufacturing, chip and streaming media industries having received extremely positive results over the past six months of intensive lab testing by brand leaders.

MAX-D HD AUDIO APP PLAYER
Since January 1, 2015 we have grown our MAX-D HD Audio App user base to over 110,000 subscribers. This is an increase of over 100%, and we continue to increase the subscriber base by nearly 10,000 new users every month. The MAX-D HD Audio App for MP3's on Android; and the MAX-D Apple iOs App (which will support the iPhone 5 and 6 series smartphones) is currently available on the Apple App Store.

Due to this strong consumer demand and App adoption, we have employed an elite in-house programming team and are developing a subscription model of the App with many new and enhanced features. In addition to being able to do what the current app can do, our new App will be able to stream music in MAX-D from the world's top streaming services such as Spotify, Pandora and Youtube. It will have Social Media Sharing and allow users to program their own unique EQ Settings. The new App will give consumers a FREE 30-day trial, then the opportunity to upgrade to a paid subscription. Next generation MAX-D Apps will be available in July 2015. See http://hdaudioapp.com

THE STREAMING INDUSTRY: As I said above, we are now demonstrating real-time how MAX-D can save these large streaming companies many millions of dollars annually. Our engineering and programing teams are working hand-in-hand right now to accomplish a successful integration of MAX-D into industry streaming leaders. We've been told to anticipate adoption of MAX-D as their new audio standard in the near future. Stay Tuned for details.

THE AUTOMOBILE INDUSTRY: We are currently under NDAs and testing agreements with leaders in the auto industry. We are making major headway in becoming a total audio solution inside certain automobiles.

Just in case you missed our automobile demos watch these CES videos:
http://vimeo.com/8461816 CES MAX-D HD Audio Challenge 1 - Las Vegas
http://vimeo.com/85476097 CES MAX-D HD Audio Challenge 2 - Las Vegas

MAX-D HEARING HEALTH
On March 11 of this year, we announced the successful results of a University of Florida study demonstrating MAX-D's hearing health benefits. Early this month, our chairman met with leaders in Washington DC from the Congressional Hearing Health Caucus and the National Institute of Health to discuss our role in helping to bring awareness on how the current audio ecosystem is destroying the Hearing Health of our youth and how MAX-D can play a role in reversing this silent epidemic. Very important developments are in the works this summer. Stay tuned.

MAXD LITIGATION
We have had a great deal of progress in the United States and Germany regarding our cases. In particular, a final hearing for permanent injunctive relief has been granted to us in our action against Google and YouTube and will be heard on December 8, 2015. In the US case, the judge denied Google's Motion to Dismiss the case based on invalidity and standing, plus he set the entire schedule in the case and the date for trial in November 2016.

SUMMARY
We continue to strive and move forward with our technologies and litigations while at the same time minimizing debt and dilution as much as possible. While nothing has moved nearly as fast as we had all hoped, with the progress we've made in the past quarter, we are more optimistic than ever that success through major brand recognition and revenue is imminent this year.

Thank you sincerely for taking the time to read and for your continued support.

Very truly yours,

John Blaisure - CEO
Max Sound Corporation

ABOUT MAX SOUND COROPORATION
MAX-D is to audio what HD (High Definition) is to video. The MAX-D™ Audio Process makes everything sound better and can convert any audio file to high definition quality while significantly reducing the file size. Visit us www.mymaxd.com. Max Sound® and MAX-D™ are Registered Trademarks and Patent Pending technologies wholly owned by Max Sound Corporation. All other trademarks are the property of their respective owners.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website www.maxsound.com or at www.sec.gov.