NEW STORES AND MOBILE PARTNERS

The Orchard is in the digital distribution business. These days, "digital distribution" isn't just about online sales. The mobile music market - sales of ringtones and full tracks over mobile phones - is approximately ten times bigger than the online download market. The good news is that our mobile distribution network is just as strong as our online distribution network. We have significantly more mobile partners than any other distributor, and are preparing to announce some very exciting news involving some of the largest wireless carriers in the world. So stay tuned!

Here are several new store and partner additions from the past two weeks:

NEW MOBILE PARTNER: MOBILE STREAMS
Established in 1999, Mobile Streams powers consumer website www.ringtones.com and supplies ringtones and ringbacks to several major North American, Latin American and European carriers' WAP decks. They recently announced partnerships with Dobson Cellular Systems [over 1.5 million US subscribers], Movistar Chile [over 4 million subscribers] and Centennial Puerto Rico [over 350,000 subscribers], adding to their network, which includes Vodafone [13 million subscribers in UK only], O2 [over 13 million in UK], 3 [3 million in UK] and many others throughout Europe. We're busy developing some great promotions for Mobile Streams and their partners that will feature dozens of Orchard clients.

Mobile Streams:
www.mobilestreams.com


ARVATO MOBILE, A BERTELSMANN COMPANY
Arvato Mobile is Europe's leading mobile entertainment provider, with a market share of over 80% in Germany, Austria and Switzerland and inroads into Eastern Europe and North America. Founded in 1999, Arvato began as www.handy.de, the most popular mobile entertainment website in Germany. Bertelsmann later acquired handy.de and its Italian counterpart tj.net under the umbrella of bemobile, renamed Arvato Mobile in 2004. Today, Arvato supplies ringtones to major carriers like Vodafone Global, T-Mobile, Wind, TIM, Orange, O2, i-mode, Swisscom and others, in addition to powering handy.de and tj.net. The Orchard will supply several hundred ringtones to Arvato Mobile.

Arvato Mobile:
www.arvato-mobile.com


KARMADOWNLOAD LAUNCHES US STORE
The UK's best website for a la carte indie downloads launched a US store earlier this year. KarmaDownload.com has built a reputation as the place to discover exciting new music; they were the first to promote the likes of Kaiser Chiefs, M.I.A. and The Go! Team. KarmaDownload also boasts a strong dance, urban and world music focus. The latter has spawned a sister site - BrasianBeats - that specializes in Asian and Indian music.

KarmaDownload:
www.karmadownload.com

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

NEW IN-STORE PLACEMENTS

Here's a handful of recent "wins" secured by our marketing team...just a taste of the hundreds of placements we secure daily:

1) Mad Professor feature on Virgin Digital "World Music" homepage. LINK

2) Celia Cruz, Ruben Blades and Fito Paez on US iTunes "Latin Music" homepage. LINK

plus The Oranges Band "New Release" on US iTunes homepage. LINK

3) John Lee Hooker "Staff Pick" on Real Music Guide. LINK

4) The Hold Steady "Featured Album" on Real Music Guide "Alternative/Punk" homepage. LINK

WELCOME, NEW LABELS

MUSIKVERTRIEB AG [SWITZERLAND] - Dance, Pop, Rock, Jazz, Classical, World.
Artists: Gotthard, DJ Antoine, Dave202, Plankton, PVP, Wurzel 5 and many more.

QUALITON [US] - Classical, World, Jazz, Pop.
Artists: Musica Antiqua of London, English Guitar Quartet, Monks and Nuns of Prinknash and Stanbrook Abbeys, Castellani-Andriaccio Guitar Duo and The Israel Chamber Orchestra, pianist Felizitas Blumenthal, Andre Marchal, Christian Sievert, violinist Gilles Colliard and many others.

M.O.D.A. [ITALY] - Dance: House, Club, Techno, Trance, Progressive, plus Urban, Pop.
Artists: Alex Effe, Alvy Marquez Project, Arsenale's feat. Thorn, Bar Oceano, DJ Iron vs. Paperboy, DJ Steve Forest, Gianni Coletti, In 2 house, Jam Jam, Mady, Members Only, Origines, Renee Margot, Sun Connection, The Mad Scramble, Tri-Band and more to come.

TALKING ELEPHANT [UK] - Folk, Rock.
Artists: Fairport Convention, Wishbone Ash, The Groundhogs, Judy Dyble, Ashley Hutchings, Rainbow Chasers, Tickled Pink and more.

BANSHEE WORX [UK] - Dance: Trance.
Artists: E-Love, Vincent Kriek, Jamez, Vlad Dzyatko, Will Holland, Rob Styles & DJ Danjo aka Primer, Solid Slide, Bjorn Small, Armandi, Liquified, Sunquest, Reminisence, Nib and Latigidi and many more.

INDUSTRY NEWS

iTUNES MUSIC STORE HITS HALF-BILLION MILESTONE
http://www.apple.com/pr/library/2005/jul/18itms.html

PAID DOWNLOADS INCREASE SHARPLY IN 2005
http://today.reuters.com/news/newsArticle.aspx?type=musicNews&storyID=2005-07-12T234630Z_01_N12577115_RTRIDST_0_MUSIC-MEDIA-SOUNDSCAN-DC.XML

REPORT: MOBILE DOWNLOADS TO TRIPLE BY 2006
http://www.theregister.co.uk/2005/07/11/mobile_content_triples/

RESEARCH GROUP POINTS TO BILLION DOLLAR ONLINE MARKET BY 2007
http://www.marketwire.com/mw/release_html_b1?release_id=90852

TOP ONLINE MUSIC SITES FOR JUNE: AOL MUSIC, YAHOO MUSIC, iTUNES, MSN MUSIC
http://blogs.zdnet.com/ITFacts/?p=8262

A FOND FAREWELL TO ORCHARD CLIENT BIG AL DOWNING
http://www.nashvillecitypaper.com/index.cfm?section_id=12&screen=news&news_id=42705

CLICK HERE FOR RECENT ORCHARD NEWS.

UPCOMING EVENTS

MUSIC 2.0: August 9-10, San Francisco CA
http://www.ihollywoodforum.com/digitalmusic2005.htm

Now in its third year, Music 2.0 brings industry leaders together to analyze trends and developments affecting the digital music business. Orchard Co-Founder and VP of International Scott Cohen is scheduled to speak at the Download on Downloads panel [August 10, 11:30am]: "With profit margins thin or non-existent, how can digital music retailers make a buck? A panel of experts considers the problems and opportunities." Scott will be joined by representatives from Yahoo!, Loudeye and Audio Lunchbox.

NARM: August 21-22, San Diego CA
http://www.narm.com

Founded in 1958, NARM [National Association of Recording Merchandisers] is an industry trade group that serves the music retail community. Its distributor and supplier members represent almost 90% of the music produced for the US marketplace. NARM's annual convention is an exclusive event where major industry players come together to make business deals, hear live music, learn about the latest research and technology and network with other heavies. Members of The Orchard's Content Acquisition team will attend.

POPKOMM: September 14-16, Berlin GERMANY
http://www.popkomm.de

Popkomm is an established music industry conference that draws over 600 exhibitors from over 40 countries and welcomes over 15,000 registrants each year. Over 70% of its exhibitors are non-German, making it a truly international event. Scott Cohen and Orchard Co-Founder / Chairman Richard Gottehrer will both speak at this year's conference. Their panels will be announced in a future Inside The Orchard.

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

MUSICWORKS: August 31-September 2, Glasgow UK
http://www.musicworksuk.com/

WOMEX: October 26-30, Newcastle Gateshead UK
http://www.womex.com/

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