Loudeye and Peppercoin Join Forces to Enable and Process Transactions for Loudeye's U.S. Digital Music Stores

WALTHAM, Mass., Oct. 11  /PRNewswire/ -- Peppercoin, a payments technology company that enables new business models for low-priced digital content and physical goods, today announced that Loudeye Corp. (NASDAQ:LOUD), a worldwide leader in business-to-business digital media solutions, will offer Peppercoin's comprehensive small payments solution to its U.S. customers.  By incorporating the Peppercoin Small Transaction Suite into its product portfolio, Loudeye can allow its network of digital music stores to process low-priced digital transactions more efficiently.  Peppercoin will work with Chase Merchant Services to process transactions from Loudeye's customers.

Peppercoin, the only small payments technology company to offer pre-paid, post-paid, subscription and pay-as-you-go pricing options, helps merchants online and in the physical world maximize profitability through flexible business models, as well as reduced processing and customer service costs. Peppercoin allows consumers to use their credit and debit cards for purchases, including those for $5 or less.

"Adding the Peppercoin solution to our platform will help Loudeye customers sell music online in an affordable and efficient manner," said David Hostetter, Loudeye's senior vice president of program management. "Peppercoin's intelligent aggregation process should help our customers decrease standard payment processing costs they would see with other online solutions."

Significant Market Opportunity

A December 2004 study from Ipsos Insight found that 47 percent of those surveyed -- which represents 24 million people within the U.S. -- paid a fee to download music or MP3 files from the Internet over the past year. This represents a 100 percent increase over 2003 and five times the number who paid to download music in 2002. This has significant implications for the online music market. Forrester Research estimates digital music downloads will reach $3.2 billion in revenue by 2008.

"Loudeye is a leading business-to-business digital media services provider in the U.S. and abroad," said Mark Friedman, president and chief executive officer of Peppercoin. "The Loudeye, Peppercoin and Chase offering will benefit companies seeking to sell music to millions of consumers in the U.S."

About Peppercoin, Inc.

Peppercoin enables profitable new business models for low-priced digital content and physical goods. Peppercoin's small payment products help merchants, banks, and other payments companies build market adoption quickly through a flexible, consumer-friendly approach. Peppercoin integrates easily with existing business models and systems to accelerate revenues and increase profits while dramatically lowering transaction and customer service costs. For more information please visit http://www.peppercoin.com/.

About Loudeye Corp.

Loudeye is a 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 digital music archive, a broad catalog of licensed digital music 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/.

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  Contact:   Julie Goldman or Payal Cudia
             Schwartz Communications
             781-684-0770
             

DATASOURCE: Peppercoin



CONTACT:  Julie Goldman or Payal Cudia both of Schwartz Communications,

[phone], 



Web site:  http://www.peppercoin.com/

http://www.loudeye.com/

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