LQ Corporation Announces Settlement of Litigation

LQ Corporation Announces Settlement of Litigation
LQ Corporation, Inc. (OTC Bulletin Board: LQID), fka Liquid Audio, Inc.,
Announced Today the Settlement of Litigation 


NEW YORK, Feb. 24  /PRNewswire-FirstCall/ -- On Friday, February 20, 2004 an
Orderwas entered in the United States District Court for the Western District
of Pennsylvania ending a lawsuit by SightSound, Inc. (the "SightSound
Litigation") against CDNow Online, Inc. ("CDNow"), a former customer of LQ
Corporation, Inc.'s ("LQ") predecessor, Liquid Audio, Inc. and predecessor of
BeMusic, Inc. ("BeMusic").  The SightSound Litigation alleged that CDNow
infringed one of more of three U.S. Patents.

As a result of the entry of the Order and pursuant to a separate agreement
between SightSound and BeMusic executed on February 12, 2004, SightSound
dismissed the SightSound Litigation and released all claims against LQ.

Entry of the Order also made effective a settlement Agreement and Mutual Release
executed on February 13, 2004 by LQ and BeMusic (the "settlement Agreement"). 
The Settlement Agreement finally resolves a claim by BeMusic seeking
indemnification from LQ relating to the SightSound Litigation and terminates an
agreement entered by LQ and BeMusic on January 24, 2003 which required LQ to
maintain $2.0 Million in available cash on hand to pay up to 50% of reasonable
attorney fees and costs in connection with the defense of the SightSound
Litigation and $5.0 million in available cash on hand to apply towards the
satisfaction ofany adverse judgment in respect of which of it was determined
that LQ would be obligated to indemnify BeMusic.  Under the terms of the
Settlement Agreement, LQ paid $1,452,000 to BeMusic and approximately $314,000
in legal fees relating to the SightSound Litigation.  These payments were in
addition to $335,827 previously paid by LQ pursuant to the January 24, 2003
agreement in consideration of attorney fees relating to the SightSound
Litigation.

As a result of the Settlement Agreement, LQ has no further obligation to
maintain available cash on hand in connection with the January 24, 2003
agreement or the SightSound Litigation.  Neither party to the Settlement
Agreement admitted any wrongdoing or any indemnification obligation in
connection with SightSound Litigation.

Cautionary Language

Statements made in this release, other than those concerning historical
information, should be considered forward-looking and subject to various risks
and uncertainties.  Such forward looking statements are made based on
management's belief as well as assumptions made by, and information currently
available to, management pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995.  Liquid Audio, Inc.'s actual results
may differ materially from the results anticipated in these forward- looking
statements as result of variety of factors, including those identified in Liquid
Audio Inc.'s annual report on Form 10-K and its quarterly reports on Form 10-Q
filed with the Securities and Exchange Commission. 

DATASOURCE: LQ Corporation, Inc.



CONTACT:  Melvyn Brunt of LQ Corporation, Inc., [phone]

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