SOUNDBUZZ Digital Music Downloads

Soundbuzz is Asia's largest online and mobile music retailer operating stores in 13 markets. We were established in 1999, at the very dawn of the digital music era. The industry is now worth US$9.4 billion globally, and is projected to grow at a rate of more than 30% year-on-year through to 2009.

Within the next three years, consumers in Asia will purchase four times more digital music than physical CDs.

Almost 50% of all music purchases in Asia in 2006 were digital (online or mobile). Mobile sales (predominantly ringtones) in the region were valued at more than US$3.5 billion last year. The digital sector is dominated by mobile music which accounted for 85% of all digital music sales in the Asia-Pacific, in contrast to more mature markets like Australia and the United States which are more evenly divided between online and mobile music sales.

Asian music sales in the coming few years will continue to be driven by mobile music which will comprise 75% of all music purchased by Asian consumers by 2009.

The massive growth in digital music sales worldwide can be attributed to:

Rapidly increasing broadband penetration;

A growing culture of mobility centred around mobile phones and MP3 players which are the new "must-have" fashion accessories; and

The speed with which the music labels are releasing their catalogues to legal digital music companies.

Soundbuzz is at the forefront of the "instant music" era, aggressively acquiring a customer base through distribution partners and via our standalone retail sites in Asia.

With more than 750,000 tracks and 500,000 mobile music derivatives in our catalogue, customers can affordably and conveniently download music sourced from 60 local and international record labels. These include all the major labels - SONY BMG, Warner Music, EMI and Universal - as well as independents from the US, Europe, Australia and Asia.

THE BUSINESS IN A NUTSHELL
Soundbuzz is a one-stop online and mobile music company, providing downloadable music and videos, back-end technology, digital rights clearances, and acquisition of licenses from music publishers and recording companies. Headquartered out of Singapore, we have more than 80 personnel based in four countries covering South East Asia, India, Australia and Greater China.

Our online music stores are currently distributed via soundbuzz.com, Creative Technology (bundled with Creative's MP3 players) and Windows Media Player 10. In total, we have developed and supplied more than 50 online and mobile music and video stores throughout Asia for partners of the caliber of Microsoft, Creative Technology, Hutchison, TATA-VSNL, Indiatimes, Bharti/Airtel, Singapore Telecom, SONY BMG, Woolworths Group, Telstra BigPond and Optus Zoo.

The content is served from our back-end infrastructure in Singapore consisting of web servers, license servers, database servers and media servers - with full redundancy.

Every month, Soundbuzz sells more than 200,000 online music downloads and 3 million mobile downloads (ringtones, truetones, ringback tones and full song and video downloads). We offer payment flexibility to our customers via relationships with ISP and mobile billing partners, as well as pre-paid music download cards.