Napster achieves number one market share in on demand music subscriptions with over 830,000 subscribers and will exceed fourth quarter guidance

Napster (Nasdaq: NAPS) today announced that it expects to report results that are ahead of the Company’s prior guidance for the fourth fiscal quarter ended March 31, 2007. When Napster releases financial results on May 16, 2007, it anticipates reporting more than $28 million in revenue and over 830,000 paid subscribers.

“Napster concludes our fiscal year 2007 with over 830,000 paid subscribers, which we believe makes us the largest on-demand music subscription service in the industry with a paid subscriber base that is both larger than Rhapsody, as well as larger than all of the remaining subscription competitors combined,” said Chris Gorog, Napster’s chairman and chief executive officer. “In mid-March, we successfully integrated over 225,000 AOL Music Now paid subscribers onto the Napster service, and our payment to AOL will be adjusted accordingly to reflect the actual subscriber count. We also enjoyed healthy organic growth adding another 40,000 net paid subscribers during the quarter. Napster ends the fiscal year with over 785,000 premium subscribers, including Japan, and approximately 45,000 university subscribers for a total of over 830,000 paid subscribers globally. Napster’s number one market share position in on demand music subscription together with our leadership position in wireless marketing partnerships, including our recently announced partnership with AT&T, creates a very healthy foundation for the continuing development of our business.”

Conference Call Information

Napster will host a conference call for analysts and investors at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, May 16, 2007. Participating on the call will be CEO Chris Gorog and CFO Nand Gangwani. To participate on the live call, analysts and investors should dial 800-218-8862 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-262-2125. Napster will also host a live web cast of the conference call at the “Investor Relations” section of the company’s Web site (http://investor.napster.com). A telephonic replay will also be available for 48 hours following the call by dialing 800-405-2236 and entering passcode 11087343#.