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Hip Digital Media and EMI Music enter into DRM-free digital music initiative across North America for consumer brand, loyalty and incentive programs

EMI Canada becomes first label to use Hip Digital’s CMS engine

Vancouver, Canada –November 12, 2007 – Hip Digital Media, a full service digital media agency specializing in the licensing and distribution of digital entertainment, and EMI Music, one of the world’s largest independent music companies, have entered into an agreement that gives Hip Digital access to EMI Music’s entire digital catalogue in higher quality DRM-free format. Hip Digital, which has developed digital music programs for consumer brands such as Visa, Pepsi, Seagate, Dentyne, Samsung, LifeSavers, CMT.ca, Nissan, Aeroplan and many others will now be able to offer music from EMI artists ranging from Coldplay, Corinne Bailey Rae and Interpol to Norah Jones, Joss Stone, KT Tunstall and more for consumer promotions, loyalty and incentive programs in the US and Canada.

In addition, EMI Music Canada has become the first major label to license Hip Digital’s proprietary content management system. This advanced system, called P.A.C.E. (Promotional Artist & Campaign Engine), has quickly become a key tool for developing online digital promotions for Hip Digital’s content partners. The system provides labels with the necessary tools for generating promotional revenue through third-party and artist-driven campaigns. P.A.C.E. features a turnkey, self-serve web interface that allows content partners, as well as Hip Digital’s brand clients to easily set up and creatively define digital promotions according to ongoing business needs.

“One reason EMI decided to make its entire digital catalog available DRM-free was that it gives us the flexibility to offer our music through so many different and new business models. Our artists will also benefit from the new revenue streams and exposure from having new ways to connect fans to our artists,” said Lauren Berkowitz, Senior Vice President of Digital for EMI Music North America. “Hip Digital has delivered some compelling consumer digital propositions for well-known brands and we look forward to working together to develop creative ways of reaching consumers with our music

Hip Digital will have access to EMI’s vast catalogue in MP3 format, free of digital rights management (DRM) and in a higher quality bit rate of 320 kbps, which will provide greater flexibility and value in the delivery and distribution of music for their custom music properties.

“Our partnership with EMI is a terrific new strategic alliance for us. With EMI’s expansive digital music catalogue and our technology platform, EMI can offer brands the ability to leverage music to better connect with consumers.” said Vered Koren, VP of Content and Business Development for Hip Digital Media. “We look forward to expanding our partnership with EMI and extending our services to other labels and brands.”

Hip Digital’s innovative music services are integral for attracting and retaining many of their client’s. With a suite of CRM solutions that include customer loyalty programs, digital premiums and purchase incentives, Hip Digital is now recognized as a leading digital media agency.

“This new licensing agreement with Hip Digital Media is a first for EMI Music Canada. We are excited to partner with them on this new venture. We recognize that their content management system is world class and it will allow us to have stronger ties to consumers while providing added benefits to our artists,” stated Sean Hutchison, Director of Digital Business Development, EMI Music Canada.

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