MOD Systems Debuts Digital Content Delivery Platform for Retailers; Proven Enterprise Solution Enables Retailers to Capitalize on Digital Entertainment Market

SEATTLE--(BUSINESS WIRE)--June 2, 2006--Embargoed Until MOD Systems, a leading provider of digital media delivery technology, today announced its content delivery platform for retailers, an enterprise software package that provides a complete solution for profitably delivering digital entertainment content to consumers. The MOD System has been deployed by a leading Fortune 500 company with a global retail presence.

The MOD System is designed to help retailers capitalize on digital media revenue opportunities, which according to the IFPI Digital Music 2006 Report tripled to $1.1 billion last year globally. And brick-and-mortar retailers account for the majority of entertainment media sales, with 2005 revenues of $12 billion, reports the Recording Industry Association of America.

"Our system provides a competitive edge to retailers interested in maximizing entertainment revenue,"said Mark Phillips, CEO of MOD Systems. "It's a proven solution that equips retailers with everything they need to merchandise and sell digital content, reduce operating costs, and provide customers with a great in-store experience."

With the MOD System, customers use an in-store digital commerce interface to search a growing catalog of 1.6 million tracks by artist, genre, title, and other metadata, and can buy albums, singles, or compilations by burning a custom CD or downloading (wired or wireless) to a personal device. Behind the scenes, retailers use the end-to-end platform to manage, merchandise, and sell digital media and create engaging in-store experiences.

Complete, Powerful Content Delivery System

MOD System features include content programming, search and browse capabilities, and fulfillment. The system also supports digital signage and overhead music. The platform enables a variety of branded and easy-to-use customer-facing interfaces. Its end-to-end infrastructure is designed for large scale deployment across multiple retail locations, and is sold in numerous configurations. The platform allows retailers to:

-- Manage digital assets. The MOD System supports a music catalog of 1.6 million tracks and growing, and features a digital rights management (DRM) solution.

-- Publish and distribute data. The MOD System ingests, converts, and processes content assets for export to all stores in the digital media delivery network.

-- Merchandise content. The MOD System enables retailers to program content, create digital displays, and promote marketing initiatives.

-- Monitor the network. The MOD System includes robust end-to-end monitoring tools that track system health, anticipate errors, and send alert notifications.

-- Personalize the customer experience. The MOD System generates recommendations based on external feeds and customer history.

Experienced Team

Co-founders Anthony Bay and Mark Phillips started MOD Systems in April 2005 to develop a flexible, extensible platform that supports the next generation of entertainment media retailing. The core MOD engineering team has built numerous embedded systems that support digital media content. A seasoned executive team brings rich and diverse digital media experience from industry-leading organizations including Microsoft, Loudeye Corporation, Apple Computer, Fullplay Media Systems, and ScreenPlay.

About MOD Systems

MOD Systems provides retailers with a complete system for profitably managing, merchandising, and delivering digital media to customers. Founded in 2005 and headquartered in Seattle, MOD Systems' unique approach is based on managing digital content intelligently and delivering it flexibly, with a focus on large scale deployments. With the MOD System, retailers are positioned for the next generation of retailing supporting a wide range of consumer devices and delivery options including CD burning, direct to device, and wireless. More information is available at www.modsystems.com.

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