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Sanctuary Records, Liquid Audio Ink Content Distribution Deal

Sanctuary Records Group and Liquid Audio, Inc. have signed a content distribution
agreement, where Sanctuary will use Liquid Audio technology to
make both new releases and catalog titles available to
consumers as full ownership, a la carte digital downloads and
through a monthly subscription service. This new collection of digital downloads
can be found through leading retail and music Web sites in the Liquid Music
Network and through this fall.

Consumers will be able to download music, burn tracks to CD
and transfer content to portable devices enabled by Liquid
Audio software. Sanctuary Records Group plans to make a
variety of music digitally available from its catalog,
including content from leading artists such as Iron Maiden,
Megadeth, Queensryche, The Rollins Band, The Kinks, Widespread
Panic and many more.

"Liquid Audio continues to enjoy a leadership roll in digital
distribution and Sanctuary is pleased to join with them in
bringing the music of our diversified artists to consumers
online," stated Sanctuary Records Group President Tom Lipsky.

"Sanctuary Records Group possesses the most comprehensive
independent catalog of rock music available anywhere," said
Michael Abbattista, senior director of Content Development and
Label Relations at Liquid Audio, Inc. "By making its music
available for sale both through Liquid Audio's distribution
network and a customized subscription model, Sanctuary will
provide a variety of consumer friendly choices for fans who
wish to access music digitally."

Sanctuary Records is a division
of UK-based international media and entertainment group
Sanctuary Group plc; Liquid Audio is a
leading provider of software, infrastructure and services for
the secure digital delivery of media over the Internet.