ArkivMusic Posts Record Sales for 2007

Online Classical Music Retailer Bucks Industry Slide in CD Sales
BRYN MAWR, Pa.--(Business Wire)--ArkivMusic, The Source for Classical Music(TM)
(http://www.arkivmusic.com) announced today that the company achieved
record revenues in 2007 with 30% growth year-over-year, topping one
million dollars in December alone. This bucks the retail industry's
downward trend in sales of physical CDs.

"This was the best year overall for our business, and another
successive year of accelerated growth," said ArkivMusic's President
Eric Feidner. "It's hard to overemphasize the significance of this in
today's music marketplace. We currently only sell physical CDs of
classical music. With the industry's ever-increasing focus on digital
downloads, I think this shows just how unique our particular genre of
music is relative to the overall music business."

Elsewhere, the music business ended 2007 on a weak note. According
to Nielsen SoundScan, U.S. album sales were down more than 15% for the
year.

"Over the last few years, ArkivMusic has become one of our largest
accounts in the U.S.," stated Jim Selby, President of Naxos U.S.A. "We
are thrilled that they have been able to get the word out about our
recordings to so many classical music lovers across the country."

Operating exclusively online, ArkivMusic's advantage is its
"endless shelf" of available classical CD inventory. The company is an
example of The Long Tail theory where companies profit by selling less
of more. Classical aficionados can access the largest number of
classical recordings available anywhere in the world -- over 82,000
titles -- including nearly 5,000 formerly out-of-print titles produced
"on demand" as ArkivCDs.

"The ArkivCD program made up about 10% of our overall business in
the fourth quarter," continued Feidner. "That's a significant
percentage for what is essentially a new line of products. We launched
this initiative late in 2006, and we continue to reissue hundreds of
releases each month as we expand the catalog of formerly deleted
titles."

All four major label groups are participating in the ArkivCD
program. Thomas Evered, General Manager and Senior Vice President of
EMI Classics/Angel Records stated, "ArkivMusic has become a vital and
important outlet for our current catalog of CDs as well as our
now-available back stock as ArkivCDs. They have shown that the
classical customer is eager to find new releases and catalog reissues
and is underserved by what is left of traditional retail."

About ArkivMusic LLC

ArkivMusic - The Source for Classical Music(TM)
(http://www.arkivmusic.com) is an online retailer of classical music
focused on offering a vast selection of classical titles through an
intuitive interface and a decentralized distribution platform. Since
opening its online store in February 2002, ArkivMusic has built the
largest selection of classical music recordings in the U.S., with
access to over 82,000 titles from over 1,500 labels shipped from 20
distribution centers. In keeping with its mission of preservation,
promotion, and efficient distribution of classical music, ArkivMusic's
innovative production-on-demand ArkivCD program allows consumers to
find and purchase out-of-print recordings alongside the in-print
catalog.

ArkivMusic LLC
Wende Persons, Communications & Marketing
Phone: 718-852-9865
pr@arkivmusic.com

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