Kontor New Media Selects RightsFlow for Mechanical Licensing and Royalty Services

NEW YORK, December 17 - Kontor New Media, a European market leader for digital distribution of
independent music and movies, announced an agreement with RightsFlow to
provide mechanical licensing and royalty payment services for Kontor's
distributed labels. Kontor New Media's label clients will be able to use
RightsFlow's proprietary licensing, accounting and royalty payment technology
to help manage the complex issues of copyright compliance. By offering labels
this service, Kontor New Media is providing a cost-effective solution that
will help reduce liability and ensure that creators are paid.

RightsFlow is one of the leading experts in mechanical licensing,
simplifying how rights holders get paid. As new methods of consuming music
have emerged the company has been a pioneer in solving the complex issues of
copyright compliance and royalty payment. RightsFlow's proprietary FLOW
technology provides a single, cost-effective channel that connects
rights-holders and companies that sell or distribute music. This innovative
solution ensures proper licensing, accurate accounting and timely payment of
royalties, and has been widely adopted by labels, artists and global
businesses.

"RightsFlow's technology and service solution helps extend Kontor New
Media's effort to automate the mechanical administration process for all of
our clients," said Michael Pohl, Managing Director of Kontor New Media. "We
are excited about the partnership and look forward to providing our labels
with these cost-effective tools to manage their royalty payments and
clearances."

"We are delighted to partner with a European distribution and marketing
leader like Kontor," said Patrick Sullivan, CEO, RightsFlow. "We look forward
to demonstrating how RightsFlow's proven, simple service can provide a
cost-effective solution for mechanical licensing compliance for Kontor New
Media and its distributed labels. By utilizing our streamlined licensing and
payment service, participating labels will be able to better focus on their
core business of releasing great music."

Under U.S. Copyright Law, mechanical licenses are required for music to
be distributed through online music services. The current U.S. statutory
mechanical rate for permanent downloads is 9.1 cents for songs five minutes
or less and 1.75 cents per minute for songs over five minutes. Limited
download and interactive streaming services generally pay a mechanical
royalty of 10.5 percent of revenue, less amounts owed for performance
royalties.

For more information visit www.rightsflow.com or www.kontornewmedia.com.

For RightsFlow: Alex Holz, Director of Client Relations, +1-212-937-6955 x302, alex.holz at rightsflow.com; For Kontor New Media: press(at)kontornewmedia.com