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Napster Revenues Up, Subscriptions Flat

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The day after Napster launched its MP3 store to mixed reviews, the company’s quarterly report showed net losses narrowing and net revenue up almost 6%. But Napster’s core offering subscriptions, grew only fractionally during the quarter to 760,000 from 743,000 three months earlier.

"Napster concludes fiscal 2008 with annual revenue growth of 15%, positive cash flow throughout the fiscal year and a significant year over year improvement in bottom line results," said Chris Gorog, chairman and CEO.

Net revenue for the fourth quarter of fiscal 2008 was $30.8 million, up 6 percent from $29.1 million in the prior year quarter. Net loss for the fourth quarter of fiscal 2008 was…

$4.3 million, or $0.10 per basic and diluted share, substantially lower
than the net loss of $8.5 million, or $0.20 per basic and diluted
share, in the fourth quarter of fiscal 2007.

Net revenue for the fiscal year ended March 31, 2008 was $127.5
million, up 15% from $111.1 million in fiscal 2007. Net loss for fiscal
2008 was $16.5 million, or $0.38 per basic and diluted share, a
significant improvement compared to net loss of $36.8 million, or $0.85
per basic and diluted share, in fiscal 2007.

Napster
ended fiscal 2008 with a total of $69.8 million of cash, cash
equivalents and short-term investments. Napster had approximately
760,000 paid subscribers at March 31, 2008 compared to 743,000 paid
subscribers at December 31, 2007.

EXCLUSIVE INTERVIEW THIS WEEK WITH NAPSTER COO CHRISTOPHER ALLEN HERE.

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