MakeMusic’s Monthly SmartMusic Subscription Report – November 2010

MINNEAPOLIS--(BUSINESS WIRE)--MakeMusic, Inc. (NASDAQ: MMUS) today announced monthly subscription results for SmartMusic^®, the interactive music software for band, orchestra and voice. SmartMusic subscriptions as of November month-end numbered 161,788, representing an increase of 1,107 from the previous month and a 23% increase over the prior year.

“We are entering a seasonally slower time of the year for our SmartMusic subscription business”

SmartMusic’s gradebook feature, which facilitates student grading and records management via the Internet, showed 1,936 teachers have issued assignments, a 9% increase over November of last year. Gradebook teachers, those having issued assignments to 50 or more students, totaled 950 at the end of November. This is a 15% increase compared to 825 gradebook teachers at the end of November 2009.

The number of SmartMusic educator accounts was 9,461 compared to 9,523 at the end of October, a decrease of 62 accounts.

“We are entering a seasonally slower time of the year for our SmartMusic subscription business,” stated Jeff Koch, interim chief executive officer. “As a result, our subscription growth in November was more modest than in the early months of the school year when we typically see large numbers of new SmartMusic installations. In addition, the price increase we instituted as of September 15 likely caused prospective new SmartMusic customers to speed up their purchase decisions in order to lock in the lower price.

“Moving forward, we are expanding our direct sales force in an effort to accelerate SmartMusic subscription growth. We have set up new sales territories and are in the process of recruiting and training additional sales staff.”

SmartMusic monthly site agreement totals are shown in the SmartMusic metrics table below:

SmartMusic Metrics:


			Educators
	Total	Educator	who have	Gradebook	Site
	Subscriptions	Accounts	issued	Teachers	Agreements
			assignments
Nov-10	161,788	9,461	1,936	950	487
Oct-10	160,681	9,523	1,628	761	465
Sep-10	158,574	9,312	1,085	415	466
Aug-10	149,038	9,180	374	60	406
Jul-10	143,121	9,003	—	—	373
Jun-10	143,095	9,073	2,379	1,172	372
May-10	140,410	9,096	2,401	1,194	367
Apr-10	139,671	9,097	2,378	1,190	354
Mar-10	139,363	9,368	2,340	1,156	356
Feb-10	137,153	9,419	2,250	1,106	341
Jan-10	135,527	9,335	2,067	994	335
Dec-09	133,782	9,269	1,857	886	322
Nov-09	131,321	9,188	1,778	825	309

“Gradebook Teachers” and "Educators who have issued assignments" are annual statistics that restart on July 1 of each year reflecting the start of the school-year cycle. The gradebook feature was temporarily unavailable in July 2010 until SmartMusic 2011 was released in August 2010.

Follow SmartMusic activities from our Community page, which offers access to the SmartMusic Blog, Newsletter, Forum and links to SmartMusic presence on Twitter, Facebook, YouTube and more.

About MakeMusic, Inc.
MakeMusic^®, Inc. is a world leader in music technology whose mission is to develop and market solutions that transform how music is composed, taught, learned and performed. For more than 20 years, Finale^® has been the industry standard in music notation software, enabling composers, arrangers, musicians, teachers, students and publishers to create, edit, audition, print and publish musical scores. MakeMusic is also the creator of SmartMusic^® interactive software that is transforming the way students practice. With SmartMusic, students and teachers have access to thousands of band, orchestra and vocal pieces allowing students to practice with background accompaniment and get immediate feedback on their performance. SmartMusic allows teachers to individualize instruction and document the progress of every student. Additional information about this Minnesota company can be found at www.makemusic.com.

Cautionary Statements
Certain statements found in this release may constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the speaker’s current views with respect to future events and include any statement that does not directly relate to a current or historical fact. Our forward-looking statements in this release relate to our SmartMusic subscriptions, gradebook statistics, and expanding our direct sales force. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. Examples of risks and uncertainties for MakeMusic are described in our reports to the Securities and Exchange Commission (including our Annual Report on Form 10-K). Investors should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this release. We do not intend to update publicly or revise any forward-looking statements.