Nero Inc. Packs More Value into Retail Version of Nero 6 Ultra Edition; Nero’s New Update -Version 6.6- Hits Shelves with New Applications, New Features and a 14 Day Trial MusicNow Subscription

LAS VEGAS, NV -- 1/7/2005 -- Nero Inc., leaders in digital media technology, announced today the release of Nero 6 Ultra Edition Version 6.6 to retail customers. The award winning Nero 6 Ultra Edition introduces several new applications and new features with this latest update, and comes packaged with a 14-day free trial to MusicNow’s Full Access music subscription service.


“Nero continually strives to offer consumers advanced digital media solutions along with added value,” said Udo Eberlein, President, Nero Inc. “With the new update of Nero 6 Ultra Edition Version 6.6 and the online music services by MusicNow, retail consumers receive the best value available today addressing all their digital media needs.”

The major update to Nero 6 Ultra Edition Version 6.6 contains a wealth of new features and functionality along with an intelligent product launcher, Nero StartSmart 2, guiding the user to CD or DVD recording tasks effortlessly. NeroVision Express 3 now supports the import and editing of DVD-VR on DVD-RW/DVD-RAM, and accepting content directly from DVD+VR, DVD-VR, DVD-Video, SVCD and VCD discs. Nero Recode 2, an ultra fast transcoder, supports direct file encoding to Nero Digital(TM) (MPEG-4). Nero Recode 2.1 adds new profiles for CE device compatibility including Mobile, Portable, Standard, Cinema, and High Definition TV. In addition, it now supports 2 sub-titles, 2 audio tracks and chapter creation. A new addition to the Suite, Nero MediaHome, a UPnP compliant application that transforms an ordinary home network into a fully functional streaming media center, allowing files to be shared on a LAN (Local Area Network) that can be played back from the server by Nero ShowTime 2 on other networked systems. Also added to the Suite is Nero PhotoSnap, a photo editing and viewing application.

Along with the wealth of applications within Nero 6 Ultra Edition, you will now have the opportunity to try MusicNow to build your digital music collection in a safe and legal way. Play tracks from MusicNow on your PC, transfer to other devices, and burn onto CDs. Find your favorite music, and discover new favorite artists, albums, and musical genres. You can buy individual tracks for $.99, and most albums for $9.99. Subscribers to MusicNow’s Full Access tier can play complete songs and albums before they buy, and stream more than 40 exclusive channels of commercial-free music.

“We are excited to be bundling a free 14 day trial of MusicNow to Nero 6 Ultra Edition retail consumers,” said Gary Cohen, president of MusicNow. “The Nero Ultra Edition is recognized around the World as the premier Digital Media application and fits nicely with our MusicNow Service. And importantly, we believe that the Nero customer is our customer.”

Nero 6 Ultra Edition Version 6.6 with MusicNow Trial Offer will be available at participating USA retailers in December 2004. A FREE update to Version 6.6 is available to all current users of Nero 6 Ultra Edition at www.nero.com. Nero 6 Ultra Edition retail buyers will be directed to www.musicnow.com/nero where they can follow instructions to take advantage of the 14-day free trial offer.

About Nero

On the global digital media market, Nero offers the most reliable CD/DVD-software applications in the entire industrial segment. Since the company was founded in 1995, its leading product, Nero, has established a loyal clientele of more than 160 million users throughout the world.

Nero’s award-winning flagship product, Nero 6, includes all the applications and functionalities needed in the digital media field. Other Nero products and technologies include Nero Digital(TM) (audio/video technology), Nero PhotoShow Elite (a simple and complete photo solution), SIPPS (VoIP Software), and across (professional computer-aided translation software).

Nero products are globally distributed by leading hardware manufacturers, international distribution partners and online portals, as well as directly via www.nero.com. Nero Inc. in Glendale, California/USA and Nero K.K. in Yokohama, Japan are subsidiaries of Nero AG, based in Karlsbad, Germany.

About MusicNow

MusicNow LLC, a wholly-owned subsidiary of Circuit City Stores Inc. (NYSE: CC), manages the software and systems that cover every aspect of music content aggregation and delivery, including content acquisition and management, media storage, secure delivery and digital rights management to ensure that all rights holders are fairly compensated for their work. MusicNow operates a legal online music store and service with more than 40 channels of original music programming and content from all four major labels--BMG/Sony, EMI, Universal Music Group and the Warner Music Group--as well as hundreds of independent labels. Consumers have the option to either purchase tracks and albums a la carte via MusicNow’s download stores or subscribe to MusicNow’s subscription service, which provides unlimited access to the music in MusicNow’s library for a monthly subscription fee. The company is headquartered in Chicago. For more information or to subscribe to MusicNow, please visit www.musicnow.com.

Nero(R) is a registered trademark, InCD is a trademark of Nero AG. Any other product names are trademarks or registered trademarks of their respective owners. (C) 2004 Nero. All rights reserved.

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