DMX MUSIC LAUNCHES IN-STORE, IN-HOME AND
ONLINE MUSIC PROMOTION
WITH EMI, ANCHOR BLUE AND SAM GOODY
FEATURING COLDPLAY AND OTHER ARTISTS

“New Year, New Hear” Enhanced CD To Be Distributed As Gift With Purchase;
Music To Air On “DMX Backstage“;
Grand Prize Trip For Two To See Coldplay In Concert and Meet the Band


Los Angeles (January 7, 2003) – DMX MUSIC, an international leader in delivering unparalleled music experiences to homes and businesses, has developed the “New Year, New Hear” promotion using a multiple platform distribution strategy. DMX MUSIC’s promotional partners include Anchor Blue, EMI and Sam Goody. The promotion runs from January 10-24, 2003.

Through DMX MUSIC’s integrated marketing services, the unique “New Year, New Hear” promotional campaign was created in an effort to build brand awareness for EMI’s artists and enable Anchor Blue to extend its reach into the youth market. Signage promoting the contest, gift with purchase and featured artists will be in 220 Anchor Blue store locations. In addition, an enhanced CD featuring music and more from exploding EMI artists Coldplay, OKGO, The Exies, and The Vines will be distributed as a gift with a $50 Anchor Blue purchase. The enhanced CD includes a discount off these band’s full-length CDs available at Sam Goody locations nationwide.

"This cross promotion demonstrates how DMX MUSIC can create a compelling integrated marketing strategy by bringing together non-traditional partners looking to reach a similar target audience and provide powerful results for all involved,” said Bonnie Solomon, vice president, strategic marketing, DMX MUSIC.

In addition to the in-store signage, shoppers will be informed of the promotion by audio messages recorded by Coldplay, OKGO and The Exies broadcast within the music programming created specifically by DMX MUSIC for Anchor Blues stores. The messages will also include back announcing of song titles and mentions of the artists’ albums, as well as store identification from the bands.

Music and interviews with Coldplay, OKGO, The Vines and The Exies will air within a 2-hour audio show, “DMX Backstage”, January 6-26 as part of The DMX Listening Room channel. The channel is available to DMX MUSIC commercial and residential customers who receive DMX MUSIC via direct broadcast satellite (DBS) and digital cable. DMX MUSIC will also include audio promotions and onscreen text messages that will drive fans to the DMX MUSIC (www.dmxmusic.com) web site to learn more about the promotion. Audio and video content from all four bands will be available on the DMX MUSIC web site.

“When DMX MUSIC approached us with the ‘New Year, New Hear’ campaign, we understood that it was a perfect way to reach out to the youth lifestyle demographic through alternative, high impact marketing initiatives while gaining significant exposure for our artists in-store, online and on television,” said Lynne Leger, vice president, retail marketing at EMI. “We are thrilled to be collaborating with such innovative companies like DMX MUSIC and Anchor Blue.”

The promotion includes an enter-to-win contest with a Grand Prize trip for two to Denver to see Coldplay in concert and meet the band backstage. The grand prize package includes airfare and hotel accommodations. Additional winners will be awarded gift certificates to Anchor Blue stores and EMI CD packages. Anchor Blue shoppers and DMX MUSIC listeners can register in an Anchor Blue store and online at the DMX MUSIC and Anchor Blue (www.anchorblue.com) websites.

“Finding new and creative ways to reach out to our young shoppers is a challenge. This promotion speaks to our target audience with what’s relevant and important to them, music. Working with DMX MUSIC and EMI in creating this promotion has been a valuable experience,” said Eric Gross, marketing manager for Anchor Blue.

DMX MUSIC provides the industry’s largest selection of channels in a variety of genres direct to homes and businesses around the world. Each DMX MUSIC channel features non-stop, CD-quality music in styles ranging from country, jazz and rock to world music, classical and hot hits.

The featured EMI artists include: Coldplay whose acclaimed debut album, 'Parachutes' sold five million copies worldwide and featured a collection of direct, soulful, utterly beautiful songs stripped right back to expose the raw emotion underneath. Showing that you don't always have to shout to be heard, it has sold nearly five million copies worldwide; The Exies, a four-piece modern rock outfit from Southern California with influences such as the Foo Fighters & Stone Temple Pilots, blend "classic song crafting" with "infectious melodies" and a "rock to the core" attitude; OKGO is part indie rock, part stadium rock, part straight up pop with the occasional whiff of the Pixies, The Cars and Elliot. Their debut release features the hit single Get Over It.

Additionally, the promotional CD includes a young quartet from Sydney, Australia called The Vines, whose highly evolved sound is a swaggering, tuneful shot of raw rock The name Anchor Blue has become synonymous with quality clothing that is in style and reasonably priced. In 1996, the first Anchor Blue store opened, however to better align the private brand with existing stores the clothing line has begun opening all new stores as Anchor Blue stores. Anchor Blue started out many years ago as Millers Surplus, became Millers Outpost, and then developed into the fashion-conscious, youth-oriented store that it is today.

About DMX MUSIC
DMX MUSIC, Inc., which was formed by the merger of DMX MUSIC and AEI Music Network, Inc. in May 2001, is a majority-owned subsidiary of Liberty Media Corporation (NYSE: L, LMC.B). Operating in more than 50 countries, DMX MUSIC is headquartered in Los Angeles with offices in Seattle and throughout the United States and internationally in Australia, Belgium, Canada, The Czech Republic, France, Germany, Holland, Hungary, Poland, Japan and the United Kingdom. DMX MUSIC is a global leader in digital music programming, with one of the world's largest digital music and video libraries, creating more than 400 unparalleled styles of non-stop music delivered via digital cable, satellite, DVD and the Internet. DMX MUSIC distributes its music services worldwide to more than 10 million homes, 180,000 businesses, and 30 airlines with a worldwide daily listening audience of more than 80 million people. For more information access the company’s website at www.dmxmusic.com.

About Anchor Blue
Anchor Blue is a subsidiary of Ontario, California-based Hub Distributing, Inc. (HUB), which operates over 300 retail stores throughout the West Coast and Midwest including Millers Outpost and Levi’s/Dockers by M.O.S.T. HUB is owned by American Retail Group, Inc. (ARG), a privately held company whose holdings include nearly 1,000 specialty and specialty department stores and 11,000 full and part-time employees in 47 states.

About EMI Recorded Music
EMI Recorded Music is the world's largest independent record company, operating in nearly 50 countries around the world. Its record labels include Angel, Blue Note, Capitol, EMI: Chrysalis, EMI Classics, Mute, Parlophone, Priority and Virgin.

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