LOS ANGELES, March 31, 2008 /PRNewswire/ -- Universal Music Group
Distribution (UMGD), the award winning sales and marketing division of
Universal Music Group (UMG), the world's leading music company, has entered
into a strategic alliance with INgrooves, a leading provider of digital
distribution, marketing and promotion services to the independent music
industry. As part of this venture, Universal Music Group has made a
strategic investment in INgrooves. The announcement was made today by Jim
Urie, President & CEO of UMGD, and Robb McDaniels, CEO of INgrooves. The
terms and conditions of the transaction were not disclosed.

    This partnership further expands UMG's growing portfolio of strategic
media investments, while expanding the services and opportunities that
UMGD, and Fontana, the company's independent distribution subsidiary,
provides their partner labels. Utilizing INgrooves' proprietary and
cutting-edge software platform, ONE Digital, the UMGD and Fontana family of
labels will directly benefit from superior, seamless digital distribution
to all of the major music services, while capitalizing on INgrooves's
comprehensive menu of services which include digital retail sales and
marketing, sales reporting, film and video distribution, and mobile.

    "Universal is committed to exploring new ways to expand the
availability of our artists' music online, while offering our partner
labels the widest array of choices possible in how and where they make
their music available," stated Mr. Urie. "And after much research, we
identified INgrooves as the most successful and comprehensive second
generation digital distribution company in the market. Through this
venture, we will provide our partners with access to the only flexible
digital distribution system that allows for innovative structures to
maximize their freedom, the connection of the artists' music to fans, and
sales."

    "We started INgrooves six years ago with a mission to develop the
finest and most comprehensive digital distribution platform. Through the
dedicated efforts of the entire INgrooves team we have achieved that goal,"
commented Mr. McDaniels. "Now that the world's leading music company and
its executives have validated the INgrooves brand, its exclusive technology
and the comprehensive services that only we can deliver, we are ready to
provide UMG unparalleled digital distribution support and expand the
proliferation of our platform to an industry in need."

    "Fontana has been at the forefront of offering the most comprehensive
digital music distribution services in the industry to the independent
sector," added Ron Spaulding, Executive Vice President and General Manager
of Fontana. "And we are delighted to partner with Robb and his team as we
further enhance our digital efforts and expand the reach of our partners
via INgrooves' digital platform."

    Most recently, INgrooves served as the exclusive digital distributor of
Dolly Parton's 'Backwoods Barbie', her first mainstream release in over 17
years which debuted as the #1 country album on iTunes. INgrooves clients
include leading independent music labels such as ESL Music, VP Records,
Chocolate Industries, A2M Distribution, Stones Throw Records, Hitchhike
Records, bluhammock music, Distinct'ive Records, and artists such as Tracy
Lawrence, Thievery Corporation, Los Tigres del Norte, Tila Tequila, The
Cool Kids, Prodigy, Lady Sovereign, Too $hort, and The Crystal Method,
among many others.

    Peter LoFrumento/Maria Ho-Burge

    Universal Music Group

    212-830-0801

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