226 Music Group, Inc. Update

DALLAS--(BUSINESS WIRE)--226 Music Group, Inc. (Pink Sheets: TTMG) announced today that after a series of unfortunate set backs the company will close it’s artist management division and is currently assessing the viability of it’s independent label division.

“We have encountered numerous obstacles starting with the tragic murder of Dimebag Darrell Abbott of Damageplan in late 1994”

On April 10, 2007, Drowning Pool terminated its artist management agreement with the Company, after eight years together. The Company also lost its record distribution with Sony’s independent label distribution subsidiary RED Distribution citing poor album sales by 226 recording artists Jacknife and Dryline. Additional artist management agreements with Walls Of Jericho and Damageplan have been terminated as well as joint venture recording projects including artists Lola Ray.

“We have encountered numerous obstacles starting with the tragic murder of Dimebag Darrell Abbott of Damageplan in late 1994,” stated Paul Bassman CEO of 226. “In addition, repeated personnel changes with Drowning Pool and the loss of their label deal with Windup Records delayed our timetable for launching their next record. These events ultimately impacted our ability to leverage those established artists and effectively launch new artists on the 226 label. At this time we are accessing all possible options to determine if 226 can remain a viable operating entity,” added Bassman.

About 226 Music Group, Inc.

226 Music Group, Inc. is a multi-faceted entertainment company encompassing a traditional independent record label model, artist management company and an on-line division providing music and entertainment over the Internet. Zero-Sum Recordings, a division of 226 Music Group, is an independent record label that produces, licenses, acquires, promotes and is distributed by RED Distribution, a division of Sony (which trades under the symbol SNE). 226 Music Group also specializes in developing, utilizing and marketing technology systems to deliver music in a digital format to the end consumer in an expeditious and cost effective manner. These divisions of 226 will be integrated to accommodate the rapidly changing methods of promoting and delivering music for the consumer market.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, demand for sensors produced by the joint venture, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.