Loudeye Restructures Operations to Support New Initiatives, Consolidate Core Business Infrastructure and Integrate Recent Acquisitions

Apr 11, 2001, 01:00 ET from Loudeye Technologies, Inc.

    SEATTLE, April 11 /PRNewswire/ --
 Loudeye Technologies, Inc. (Nasdaq: LOUD), a leading provider of services and
 infrastructure for the authorized delivery of digital content, today announced
 it is restructuring operations to consolidate its core media services
 infrastructure, integrate recent acquisitions and support new business
 initiatives under development.
     Having substantially completed the development of its advanced digital
 music archive and related distribution technology, Loudeye will focus its
 resources on aggressively exploiting these assets and supporting new business
 initiatives that directly enable the authorized delivery of digital music.
 Those initiatives, which the Company will begin rolling out in the weeks
 ahead, may include new product offerings, key strategic alliances and
 acquisitions, as well as the reduction or outsourcing of non-core business
 operations. Additionally, Loudeye is integrating the recent acquisitions of
 DiscoverMusic, currently the largest purveyor of music samples on the
 Internet, and certain technology assets of OnAir Streaming Networks, a leading
 developer of online radio applications.
     As a result, Loudeye's permanent work force of approximately 300 is being
 reduced by 45 percent. The Company's Seattle-based operations, presently
 located in four separate facilities, will be consolidated into the corporate
 headquarters. Upon its completion later in the second quarter, the operational
 restructuring is anticipated to produce annualized cash savings of
 approximately $12 million. Loudeye expects to record a cash charge of
 approximately $2.5 million in the second quarter related to these changes as
 well as a substantial non-cash charge for related asset write-downs that will
 be discussed in the Company's announcement of first quarter results later this
 month.
     "As the emerging market for digital music distribution begins to unfold,
 Loudeye is focused on developing sustainable, scalable revenue streams," said
 John T. Baker, Loudeye chief executive officer. "I am confident that Loudeye,
 with the resources to move aggressively and opportunistically, is well
 positioned for success."
     "Although this restructuring produces significant cost savings and
 strengthens our financial position, it was engineered to maximize operating
 efficiency and align resources with a refocused business plan that leverages
 Loudeye's technology, expertise and customer knowledge," Baker added.
 
     About Loudeye Technologies, Inc.
     Loudeye is a leading provider of services and infrastructure for the
 authorized delivery of digital content that empower today's top media,
 entertainment and Fortune 1000 companies to transform traditional media assets
 into dynamic digital content. Through its Loudeye(TM) Digital Media Centers in
 Seattle (headquarters), New York and London, Loudeye is building the
 infrastructure to support the next generation of digital media businesses. To
 learn more, visit www.loudeye.com.
 
     Forward Looking Statements:
     Unaudited Financial Information and Forward-Looking Statements
     The company believes the special charge estimates to be materially
 accurate although that information is subject to adjustment based upon final
 internal reviews by management and review by its independent auditors. In
 addition, this press release contains forward-looking information within the
 meaning of the safe harbor provisions under the Private Securities Litigation
 Reform Act of 1995, as amended, such as statements about Loudeye's initiatives
 and roll-outs, estimated future financial results, including size of special
 charge amounts, anticipated accomplishments and potential cost-savings from
 the company's reduction in staff, and the statements made by the CEO in this
 release. These statements are based on current trends, expectations, plans and
 prospects and there is no guarantee that these results will actually occur,
 these trends will actually continue or Loudeye's products, services or
 initiatives will develop in the way currently anticipated. Actual events,
 results or developments may differ materially from those expressed or implied
 in forward-looking statements due to a number of risks and uncertainties. Such
 factors include:  the possibility of adverse changes in the market for
 distribution of digital music that Loudeye serves, adverse or uncertain legal
 developments with respect to copyrights surrounding the creation and
 distribution of digital music, pricing pressures and other activities by
 competitors, the continued viability of Loudeye's customers' commercial
 prospects and their ability to pay for digital media services and
 applications, lack of market acceptance for Loudeye's products and services,
 delay in the launch of new products and services of Loudeye or its customers,
 unexpected costs in connection with the integration and consolidation of
 Loudeye's acquisitions, including diversion of management time related to the
 integration, risks involved in retaining and motivating key personnel, risks
 associated with supplier and customer concentration, capacity constraints,
 delays in the adoption of digital media or related applications on the web,
 and the acceptance and growth of streaming media technology in general. More
 information about the risks and challenges faced by Loudeye is contained in
 Loudeye's Annual Report on Form 10-K for the year ended December 31, 2000, and
 other documents filed by Loudeye from time to time with the Securities and
 Exchange Commission, copies of which are available through the SEC's
 Electronic Data Gathering Analysis and Retrieval system (EDGAR) at
 www.sec.gov. Loudeye assumes no obligation to update the forward-looking
 statements included in this release.
 
 

SOURCE Loudeye Technologies, Inc.
    SEATTLE, April 11 /PRNewswire/ --
 Loudeye Technologies, Inc. (Nasdaq: LOUD), a leading provider of services and
 infrastructure for the authorized delivery of digital content, today announced
 it is restructuring operations to consolidate its core media services
 infrastructure, integrate recent acquisitions and support new business
 initiatives under development.
     Having substantially completed the development of its advanced digital
 music archive and related distribution technology, Loudeye will focus its
 resources on aggressively exploiting these assets and supporting new business
 initiatives that directly enable the authorized delivery of digital music.
 Those initiatives, which the Company will begin rolling out in the weeks
 ahead, may include new product offerings, key strategic alliances and
 acquisitions, as well as the reduction or outsourcing of non-core business
 operations. Additionally, Loudeye is integrating the recent acquisitions of
 DiscoverMusic, currently the largest purveyor of music samples on the
 Internet, and certain technology assets of OnAir Streaming Networks, a leading
 developer of online radio applications.
     As a result, Loudeye's permanent work force of approximately 300 is being
 reduced by 45 percent. The Company's Seattle-based operations, presently
 located in four separate facilities, will be consolidated into the corporate
 headquarters. Upon its completion later in the second quarter, the operational
 restructuring is anticipated to produce annualized cash savings of
 approximately $12 million. Loudeye expects to record a cash charge of
 approximately $2.5 million in the second quarter related to these changes as
 well as a substantial non-cash charge for related asset write-downs that will
 be discussed in the Company's announcement of first quarter results later this
 month.
     "As the emerging market for digital music distribution begins to unfold,
 Loudeye is focused on developing sustainable, scalable revenue streams," said
 John T. Baker, Loudeye chief executive officer. "I am confident that Loudeye,
 with the resources to move aggressively and opportunistically, is well
 positioned for success."
     "Although this restructuring produces significant cost savings and
 strengthens our financial position, it was engineered to maximize operating
 efficiency and align resources with a refocused business plan that leverages
 Loudeye's technology, expertise and customer knowledge," Baker added.
 
     About Loudeye Technologies, Inc.
     Loudeye is a leading provider of services and infrastructure for the
 authorized delivery of digital content that empower today's top media,
 entertainment and Fortune 1000 companies to transform traditional media assets
 into dynamic digital content. Through its Loudeye(TM) Digital Media Centers in
 Seattle (headquarters), New York and London, Loudeye is building the
 infrastructure to support the next generation of digital media businesses. To
 learn more, visit www.loudeye.com.
 
     Forward Looking Statements:
     Unaudited Financial Information and Forward-Looking Statements
     The company believes the special charge estimates to be materially
 accurate although that information is subject to adjustment based upon final
 internal reviews by management and review by its independent auditors. In
 addition, this press release contains forward-looking information within the
 meaning of the safe harbor provisions under the Private Securities Litigation
 Reform Act of 1995, as amended, such as statements about Loudeye's initiatives
 and roll-outs, estimated future financial results, including size of special
 charge amounts, anticipated accomplishments and potential cost-savings from
 the company's reduction in staff, and the statements made by the CEO in this
 release. These statements are based on current trends, expectations, plans and
 prospects and there is no guarantee that these results will actually occur,
 these trends will actually continue or Loudeye's products, services or
 initiatives will develop in the way currently anticipated. Actual events,
 results or developments may differ materially from those expressed or implied
 in forward-looking statements due to a number of risks and uncertainties. Such
 factors include:  the possibility of adverse changes in the market for
 distribution of digital music that Loudeye serves, adverse or uncertain legal
 developments with respect to copyrights surrounding the creation and
 distribution of digital music, pricing pressures and other activities by
 competitors, the continued viability of Loudeye's customers' commercial
 prospects and their ability to pay for digital media services and
 applications, lack of market acceptance for Loudeye's products and services,
 delay in the launch of new products and services of Loudeye or its customers,
 unexpected costs in connection with the integration and consolidation of
 Loudeye's acquisitions, including diversion of management time related to the
 integration, risks involved in retaining and motivating key personnel, risks
 associated with supplier and customer concentration, capacity constraints,
 delays in the adoption of digital media or related applications on the web,
 and the acceptance and growth of streaming media technology in general. More
 information about the risks and challenges faced by Loudeye is contained in
 Loudeye's Annual Report on Form 10-K for the year ended December 31, 2000, and
 other documents filed by Loudeye from time to time with the Securities and
 Exchange Commission, copies of which are available through the SEC's
 Electronic Data Gathering Analysis and Retrieval system (EDGAR) at
 www.sec.gov. Loudeye assumes no obligation to update the forward-looking
 statements included in this release.
 
 SOURCE  Loudeye Technologies, Inc.