MAY 16, 1996 VIRTUAL MUSIC ENTERTAINMENT DEMONSTRATES ON-LINE TECHNOLOGY AT 1996 E3 TRADE SHOW Virtual Music engine, jukebox, and instruments will add value to the enjoyment of any audio CD. With Virtual Music technology, music enthusiasts can turn a one-dimensional audio CD experience into an extraordinary multimedia event. LOS ANGELES, CALIFORNIA, May 16, 1996 - Showcasing its revolutionary interactive music technology in an entirely new environment, Virtual Music Entertainment Inc. today unveiled a new on-line product at the 1996 E3 trade show in the Los Angeles. The Virtual Music on-line product is comprised of a Virtual Music Engine, Virtual Music JukeBox and Virtual Instruments. It allows consumers to download virtual music technology files from the Internet for use with their traditional audio CDs. The demonstration of this new technology, according to Virtual Music Entertainment Vice President of Marketing Frank Foster, is designed to show how Virtual Music technology can add value to the enjoyment of all types of music CDs and help usher in a new age of truly interactive music entertainment. "Virtual Music technology has many single and multi-user applications. One of these applications is the enhancement of traditional audio CDs," Foster said today. "Our mission is to add value to the audio CD, by allowing customers to order interactive elements that will work in conjunction with their music CDs. We believe that on-line access to our technology will provide consumers with an entirely new way to enjoy this music in a multimedia environment that allows them to play along, in real-time, with that music." The downloaded Virtual Music files provide players with the rhythm EKG "guide track" and music parts for a song. Virtual Music will also supply small games (or gamelets), song lyrics, and/or biographical information on the recording artist - all of which will further enhance the enjoyment of that audio CD. The Virtual Music Engine, which will be made available free of charge, refers to the software that resides on the consumer's computer, enabling the consumer to play along with their music CDs. The engine is comprised of both an interface and a database. The interface provides an easy-to-understand way to download Virtual Music files and gamelets. It features a screen area for the rhythm EKG and the games, as well as a button that connects players back to the Virtual Music JukeBox. The database stores all files and gamelets and features a built-in intelligence that recognizes an audio CD when it is placed in the drive and informs the player if there are Virtual Music files available for the CD. The Virtual Music JukeBox is a database within the Virtual Music web site which stores the complete inventory of files, gamelets, historic information, and songs. The JukeBox also provides information on upcoming new web site releases and order processing. The Virtual Instruments are comprised of the company's VPickx virtual guitar and VStixx virtual drum game controllers. In discussing the practicality of this on-line product, Foster points to the fact that all of the files are quite small (60K) and can be delivered to the end-user in minutes using today's 14.4KB modems. Looking to the future, Foster believes that, as the bandwidth grows and compression technology advances, the Virtual Music on-line technology will expand to include full motion and networked multi-player applications. "For the moment, the current on-line strategy allows consumers to turn their existing audio CD library into a full multimedia experience whenever they want it. It also enables consumers to easily obtain updates to the Virtual Music engine, so that it will continue to be compatible with future operating system elements" Copyright © 1996 Virtual Music Entertainment, Inc.