NEW STORES AND MOBILE PARTNERS

As you know, we supply more digital stores and services than any other distribution company, including the major labels. Every week, we widen the gap by adding new stores from around the world. Our international team - which includes people on the ground in every digital market - makes sure your music is ingested and sold around the world. Here are several new store additions from the past two weeks:

MUSICLOAD: THE LEADING GERMAN DIGITAL MUSIC STORE
According to a recent study, over twice as many German digital music consumers purchase their music from Musicload than from its nearest competitor. Launched in October 2003, Musicload's popularity is largely due to its integrated relationship with Deutsche Telekom subsidiary T-Online, the country's primary Internet broadband/portal powerhouse. In June, The Orchard inked a partnership with Musicload, who will ingest our catalog by September '05. The Orchard has begun working with Musicload to develop a comprehensive marketing plan for our non-major-label music, based on The Orchard's sales history at other German digital stores.

Musicload:
http://www.musicload.de


NEW MOBILE PARTNER: CELLUS USA
The Orchard sells songtones in every mobile service and has the strongest mobile offering of any distributor, by a considerable margin. Click here for the latest mobile partner list.

Our newest addition is Cellus, the leading provider of mobile phone content in Scandinavia, which opened its U.S. doors in 2002. Today, Cellus USA provides ringtones and ringback tones to Verizon and Boost/Nextel [through their Ring DJ Tones brand], plus Cingular, T-Mobile and Vodafone. The Orchard has developed about 500 ringtones for Cellus to sell upon launch, and will add many more in the near future.

Cellus USA:
http://cellus-usa.com/


LEGIT P2P NETWORK PEER IMPACT LAUNCHES BETA STORE
Goodbye, Grokster, hello Peer Impact. Peer Impact is a new online network that legitimizes peer-to-peer file sharing. Instead of allowing its users to share files for free, Peer Impact uses incentives - or "Peer Cash" - to encourage members to market music to other members. So if Jack recommends a track to Jill, and Jill purchases the track, Jack earns store credits to buy more music on Peer Impact. The Orchard is currently loading its entire catalog into Peer Impact. It will be available for purchase in approximately six weeks.

Peer Impact:
http://www.peerimpact.com/

CLICK HERE FOR THE LATEST UPDATED LIST OF DIGITAL STORES SUPPLIED AND SERVICED BY THE ORCHARD.

NEW IN-STORE PLACEMENTS

Several members of our marketing team traveled through Europe last week, meeting with key programming executives at the leading digital music stores and mobile songtone providers. The meetings went well, and we look forward to sharing some of our European merchandising wins that the trip generated in a future Inside The Orchard.

We are excited about how much traction we're getting from digital stores and services, and their increasing comfort in working with us to design and run custom programs. To give you a flavor, here are just a few recent examples from the hundred placements we're securing daily:

1) Meshell Ndegeocello in iTunes' New Music Tuesday weekly newsletter. LINK
This is considered prime digital real estate, read by over a million music-lovers each week.

And also: Meshell Ndegeocello featured as "New Release" on Real Rhapsody's homepage. LINK

"We know that these placements are far from a given...your focus and efforts made them happen...Good work!" - Randall Grass, General Manager, Shanachie Entertainment Corp.

2) 100% Orchard content on Musicmatch's Featured Music page: Hot Indie Rock From the UK and John Peel's Picks. Includes tracks from Art Brut, Apartment, Perishers, The Immediate, Puerto Muerto, This Girl, Atlantic Dash, Laura Cantrell, Cex, Coldplay, Pretty Girls Make Graves, The Wedding Present, Zion Train, Explosions In the Sky and Oxes.

Our marketing and programming teams work relentlessly to promote thematic track lists to digital stores and services, who include them in playlists, radio stations and stand-alone features like this.

3) Lookout Records "Class of '04" compilation banner on iTunes US Alternative page. LINK

"We're very big fans of digital samplers here at Lookout Records. With the Lookout 'Class Of '04' compilation, we've been able to revisit our current artists' most recent titles and present a complete picture of what our label is up to right now. With so many new releases each week, it's a perfect way to help the label identity and marquee artists bring some attention to our newest bands and releases." - Christopher Applegren, President, Lookout Records.

If you have over ten albums in your catalog, create a digital-only compilation like this to help us promote your music to digital stores. Contact your Product Manager for details!

4) The Yards and Art Brut featured on Real Rhapsody's "Ones to Watch" page.

This marks the second time in a row that Orchard-distributed artists make up 2/5 of Rhapsody's prestigious "Ones To Watch" page!

WELCOME, NEW LABELS

FIRE RECORDS [U.K.] - Alternative rock.
Artists: The Adverts, Thea Gilmore, Bill Janovitz [Buffalo Tom], Bark Psychosis, Puerto Muerto, The Great Depression, War Against Sleep, Tokyo Explode and more.

MAVERICK ENTERPRISES / THE COPYRIGHT GROUP [U.K.] - Classic Jazz, Blues, Pop, Country, Soul, Nostalgia, Classical and more.
Artists: Charlie Parker, John Coltrane, George Gershwin, Bill Monroe, Thelonious Monk, Tony Bennett, Bill Evans, Stan Getz, Chick Corea, Johnny Cash, Willie Nelson and thousands more.

CINEVOX [ITALY] - Soundtracks.
Artists: Ennio Morricone, Giorgio Gaslini, Goblin, Dario Argento, Armando Trovajoli, Augusto Martelli, Evan Lurie, Piero Umiliani, Stelvio Cipriani and many others.

CANDLELIGHT [U.K.] - Metal.
Artists: Monolithe, Octavia, Overmars, Audrey Horne, Dam, P.H.O.B.O.S., Blut Aus Nord, Novembers Doom, Epoch of Unlight, Thine Eyes Bleed, 1349 and many more.

CODE RED ENTERTAINMENT [U.S.] - Rap / Hip-Hop.
Artists: Cappadonna, Remedy, JoJo Pellegrino and more to come.

ORCHARD NEWS

THE ORCHARD EXPANDS TO RUSSIA
http://www.theorchard.com/news/tomembers_063005.php

CLICK HERE FOR MORE RECENT ORCHARD NEWS.

INDUSTRY NEWS

ONLINE STORES SEE WIN IN RECENT U.S. SUPREME COURT RULING AGAINST GROKSTER
http://go.reuters.com/newsArticle.jhtml?type=topNews&storyID=8915267

DIGITAL MUSIC SALES MULTIPLY STEADILY
http://www.chicagotribune.com/business/chi-0506180220jun18,1,6817744.story?coll=chi-business-hed&ctrack=1&cset=true

iTUNES MORE POPULAR THAN MOST PEER-TO-PEER FILE SHARING NETWORKS
http://www.npd.com/dynamic/releases/press_050607.html

RINGTONES CONTINUE TO GROW; HIT $4 BILLION WORLDWIDE
http://www.cnn.com/2005/TECH/ptech/06/27/ringtones.reut/

iTUNES MUSIC STORE HITS 50 MILLION DOWNLOADS IN EUROPE
http://www.apple.com/pr/library/2005/jun/23itunes.html

UPCOMING EVENT

DIGITAL RIGHTS MANAGEMENT STRATEGIES 2005: July 27-28, New York NY
http://www.jupiterevents.com/drm/fall05/

Click here to unsubscribe from future Orchard newsletters.

The Orchard :: 133 Fifth Avenue :: Floor 7 :: New York, NY 10003