LOUD Loudeye

Loudeye Announces Severance of Relationship with Independent Auditors SEATTLE, July 8 /PRNewswire-FirstCall/ -- Loudeye Corp. (NASDAQ:LOUD), the worldwide leader in business-to-business digital media solutions, today announced that its two-year relationship with PricewaterhouseCoopers LLP ("PWC"), the company's independent registered accounting firm, is ending. On June 30, 2004, PWC informed Loudeye that it would resign as the company's independent auditor after the completion of services related to the review of Loudeye's interim financial statements for the quarter ended June 30, 2004. Based on the results of a Company-initiated evaluation process that commenced in April, Loudeye had expected to terminate its relationship with PWC and had begun the process of evaluating alternative independent auditors prior to receiving notification of PWC's resignation. The Company expects to announce its new appointment shortly. Loudeye stated that PWC's resignation was not the result of any disagreement between PWC and Loudeye on any matter of accounting principles, financial statement disclosures, or auditing scope or procedures and that PWC's resignation will not result in any issues relating to the completion of its second quarter 2004 audit. "In their official notification to us, PWC expressed no concern about Loudeye's financial statements or accounting policies, and the resignation is in no way a reflection of our current operating results," said Larry Madden, Loudeye's chief financial officer. "While we regret PWC's decision to sever the relationship prematurely, we are well down the path of engaging new independent auditors for the current fiscal year." For additional information, please refer to today's Form 8-K filed with the Securities and Exchange Commission in conjunction with this press release. About Loudeye Corp. Loudeye is the worldwide leader in business-to-business digital media solutions and the outsourcing provider of choice for companies looking to maximize the return on their digital media investment. Loudeye combines innovative products and services with the world's largest music archive and the industry's leading digital media infrastructure enabling partners to rapidly and cost effectively launch complete, customized digital media stores and services. For more information, visit http://www.loudeye.com/. Forward Looking Statements This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and actual results may differ materially due to risks, including the possibility of adverse changes in the market for distribution of digital audio and video that Loudeye serves; adverse or uncertain legal developments with respect to copyrights surrounding the creation and distribution of digital content; pricing pressures and other activities by competitors; the failure of Loudeye's hosting infrastructure; the complexity of Loudeye's services and delivery networks; any problems or failures in the structure, complexities or redundancies of Loudeye's network infrastructure; failures in third party telecommunication and network providers to provide required transmission capacity; lack of market acceptance for Loudeye's products and services; the possible delay in the adoption of digital media or related applications on the web in general; and other risks set forth in Loudeye's most recent Form 10-Q, Form 10-K and other SEC filings which are available through EDGAR at http://www.sec.gov/. Loudeye assumes no obligation to update the forward-looking statements. DATASOURCE: Loudeye Corp. CONTACT: media/public relations, Karen DeMarco of mPRm, +1-323-933-3399, or , for Loudeye Corp.; or investor relations, Michael Dougherty of Loudeye Corp., +1-206-832-4000, or Web site: http://www.loudeye.com/

Copyright