IODA Inks Deal with KOCH Entertainment Distribution; Provides Digital Distribution Technology Services for Leading Independent Music Distributor

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 13, 2006--IODA -- the Independent Online Distribution Alliance -- today announced it has signed a technology services deal with KOCH Entertainment Distribution, the leading and fastest-growing independent music company in the U.S. IODA will provide encoding and delivery solutions for KOCH's extensive catalog to a select group of KOCH's existing digital retail partners. Additionally, KOCH will tap into IODA's network of more than 150 digital retail outlets to expand its current digital distribution reach and will use IODA's D3 technology platform to manage sales from select accounts.

More than 40 labels, including Acoustic Disc, Bar None, Silva Screen, Babygrande Records, Sanctuary Classics/ASV, Fat Boy, Tim Janis Ensemble, and Chandos will be a part of the deal. Selected releases will also be made available for promotional use through IODA's Promonet (http://promonet.iodalliance.com), the promotional distribution network which provides qualified podcasts, blogs, Internet radio, e-zines and other promotional sites with access to thousands of pre-cleared, legal music tracks, videos, artwork, and other promotional assets from IODA's roster of leading independent labels.

“IODA has proven to be an industry leader in this realm. Additionally, the Promonet service is yet another way that we can gain added exposure for our labels' content to complement their current promotional activities. It's like having an additional publicist working exclusively in the digital space.”

"KOCH Entertainment has been at the forefront of independent music distribution for a long time," said IODA founder and CEO Kevin Arnold. "IODA is proud to be providing technology solutions to enhance Koch's digital distribution efforts and expand its reach to include additional services, retailers, and mobile platforms around the world."

"The biggest challenge of any content provider in the current digital landscape is efficient encoding and delivery," commented Michael Rosenberg, President of KOCH Entertainment Distribution. "IODA has proven to be an industry leader in this realm. Additionally, the Promonet service is yet another way that we can gain added exposure for our labels' content to complement their current promotional activities. It's like having an additional publicist working exclusively in the digital space."

About IODA's D3 technology platform

More than 20 independent distributors, representing hundreds of labels on four continents, have signed on to D3 ("D-Cubed") since its launch in June 2005. D3 provides an easy, fast, and low cost solution for physical music distributors to offer comprehensive digital services to their label clients, powered by a proven, industry-leading digital distribution platform. Distributors enjoy the benefits of a custom branded implementation of IODA's unique Rightsholder Dashboard tools and distribution platform while maintaining their label relationships directly. IODA takes care of all licensing, encoding and delivery, and accounting functions on behalf of the distributor and provides promotion and marketing support as well.

About IODA

IODA -- the Independent Online Distribution Alliance -- is the industry-leading digital distribution company for the global independent music community. IODA provides comprehensive services to record labels, physical distributors, and artists, including license negotiations; media encoding and metadata management; royalty payment administration and reporting; and promotional support through the IODA Digital Marketing division. Founded in 2003, IODA represents a rapidly expanding roster of over 300,000 tracks from more than 1,200 independent labels around the globe. The IODA catalog ranges from established classics to modern up-and-comers in all genres, including favorites such as Antony and the Johnsons, London Symphony Orchestra, Bebel Gilberto, Billie Holliday, They Might Be Giants, The Hives, The Wrens, Ryuichi Sakamoto, Van Morrison, and Fela Kuti. IODA was named one of FORTUNE magazine's 25 Breakout Companies for 2005. The company's web site is located at http://www.iodalliance.com.

About KOCH Entertainment Distribution

KOCH Entertainment is the leading and fastest-growing independent music and video company in the U.S. and its operations encompass record and video labels as well as physical and digital distribution companies in the U.S. and Canada. KOCH Entertainment is the market leader among independents in both the U.S. and Canada and its record labels had the largest number of Billboard charting albums among independents in 2004/2005.