Klipsch Inks Exclusive Content Deal with GarageBand.com

Grass Roots Promotion Is Good for Klipsch, Good for Musicians, Good for Audio Business

INDIANAPOLIS (June 1, 2004) - Klipsch Audio Technologies has reached an agreement with GarageBand.com, the largest legal source of free music on the Internet, that includes offering 75 free song downloads every week at klipsch.com. According to Marketing Director Cris Pyle, this new service will introduce young people and the un-indoctrinated to high-performance audio and position the Klipsch brand as being in tune with the way people listen to recorded music today.

The agreement also allows Klipsch to promote its home, commercial and home-recording products to GarageBand.com's 400,000 registered members, which is the world's largest community of independent artists.

"Klipsch.com receives more than a half million unique visitors every month because we offer interesting, educational content and we offer a lot of it," Pyle said. "Through our relationship with GarageBand.com, we will extend our ability to promote the unique sound of Klipsch loudspeakers as well as the benefits of high-performance audio in general."

Pyle explained that even though Klipsch has reported 20 percent growth every year for the past seven years, the audio business has seen alarming sales declines. The Consumer Electronics Association reported a 9.6 percent drop in audio sales during 2003 and predicts another 3.6 percent drop for 2004. "We take our industry leadership role very seriously," Pyle said. "Of course we want people to buy Klipsch brand speakers, but getting new customers interested in better-sounding audio in general is an important secondary goal of our GarageBand.com relationship."

Beginning in August, Klipsch will feature "tracks-of-the-week" from GarageBand.com on the front page of klipsch.com, and a new multimedia area called "Klipsch Garage" will present the top five tracks from 15 different GrarageBand.com music charts. In total, visitors will be able to download 75 songs every week, which equals about 25 long-play CDs each month. Pyle said this type of value-added service will give consumers a big incentive to visit klipsch.com regularly, and that Klipsch will be promoting "Klipsch Garage" to younger people who are statistically less interested in high-performance audio.

"It is exciting to see a leading audio company make such a strong commitment of support to the independent music world," said Ali Partovi, CEO of GarageBand.com. "This partnership opens a terrific new promotional avenue for the cream of the crop of emerging musicians."

Pyle said GarageBand.com's credibility within the music industry, it's superior services and notoriety as one of Time Magazine's 50 Best Websites represent "exactly what we look for in a business partner and we are proud to support independent artists with GarageBand.com."

GarageBand.com is the world's largest musician community and home to the definitive charts of independent music. Since 1999, fourteen of its highest ranking bands have been signed by major labels, including double platinum recording artists Drowning Pool, and many more have scored licensing or publishing deals. In April 2004, GarageBand acquired exclusive rights to resurrect the former MP3.com community of 250,000 artists and 1.7 million songs. GarageBand.com uses collaborative filtering to let ordinary people identify the best songs. Recognized by TIME Magazine as one of 2003's "50 Best Websites," GarageBand's mission is to empower musicians and redefine how music is discovered and promoted.