Any Music Inc Established to Offer Music Distribution Direct to Audio Equipment

April 20, 2004 - On February 1, 2004 eight companies (Kenwood Corp., Sharp Corp., Sony Corp., Pioneer Corp., Onkyo Corp., D & M Holdings Inc., Victor Company of Japan, Ltd. (JVC), and Yamaha Corp.) agreed on a joint investment to establish Any Music Inc.

The new company will establish a broadband music service platform that will distribute music directly to compatible audio equipment. Any Music service is due to start on May 20 2004. Any Music will partner with LabelGate Inc. a music distribution company formed by the joint investment of Japan's leading record labels for system integration and content provision. Music library of approximately 38,000 songs will be available for the Any Music service start and will be priced from ~$1.50 (¥158) per single to ~$10 (¥1050) per album.

In addition to the music distribution service, Any Music has struck deals with FM broadcasters and CD retailers to offer more services to customers. Any Music customers will be able to access information on songs being played on FM stations and make online purchases of CD and download music contents. The first CD retailer to partner with Any Music for online purchases is HMV Japan.

Initially, the Any Music service will be available on Any Music compatible home audio equipment. Any Music is also considering tie-ups that will allow the service to be accessed on car audio equipment and mobile devices.

Any Music will continue to work with all parties in the music industry to create a new music lifestyle where content can be downloaded directly to devices.

Company Outline

1. Name: Any Music Inc.

2. Address: Shin Aoyama Bldg. (W) 17F, 1-1-1 Minami Aoyama, Minato-ku, Tokyo

3. Established: February 1, 2004

4. Capital: $5.5 million (¥600 million)

5. Investing Companies:

Kenwood Corporation (15.9%)
Sharp Corporation (15.9%)
Sony Corporation (15.9%)
Pioneer Corporation (15.9%)
ONKYO Corporation (9.1%)
D & M Holdings Incorporated (9.1%)
Victor Company of Japan, Limited (9.1%)
Yamaha Corporation (9.1%)

6. Executives

President / Fujio Noguchi
(Sony Corporation General Manager, Any Music Promotion Dept Content Business Division Network Service Center Personal Solution Business Group)

Masateru Ando
(Kenwood Corporation Senior Vice President & Executive Officer, Consumer Business Sector Japanese Market)

Tatsuo Hayashi
(Sharp Corporation Division General Manager, Digital Audio & Recording Systems Division Audio-Visual Systems Group)

Nobuhiro Suzuki
(Pioneer Corporation General Manager, Product Engineering Division
Engineering Management Division Plasma Display Business Company)

Masaaki Mawarido
(ONKYO Corporation Director & Managing Executive Officer, CE Division)

Takaji Yamano
(D & M Holdings Incorporated Executive Officer, CTO (Chief Technology Officer)
/ DENON, Limited Representative Director)

Yoshinori Yamamoto
(Sony Corporation Vice President,Executive Officer
President, Audio Group Home Electronics Network Company)

Hiroshi Sekiguchi
(Yamaha Corporation Executive Officer Senior General Manager AV & IT Business Group)

Ryuhei Nakazawa
(Victor Company of Japan, Limited General Manager, AudioVideo System Category,AV & Multimedia Company)

7. URL http://www.anymusic.jp/

Business Outline
Development of a portal site with customer management, authentication, billing and settlement systems targeted at home audio devices

Management of systems above (music distribution in partnership with LabelGate Inc.) and management of related services

Formulation of common specifications for devices/interfaces and development of common devices
Marketing, promotion, licensing, customer support etc.

Service Outline
Any Music compatible home audio equipment will have an Any Music button and dedicated screen. After users register at Any Music (one-time charge of ~$3 (¥315) and pay a monthly fee of ~$3 (¥315), they can use a remote control to quickly and easily access the following services:

• On-line purchases of songs by browsing high-quality listening samples and using search functions (Initial registration enables users to continually access the system and complete billing and settlement without having to re-enter user information everytime)
• Viewing music chart and artist information
• View on-air playlist during radio broadcasts
• Online CD shopping from menu
• Transfer of music download contents to portable devices