Toshiba Corporation
Liquid Audio, Inc

REDWOOD CITY Calif. and TOKYO, (Mar. 15, 2000)-- Toshiba Corporation and Liquid Audio, Inc. (Nasdaq: LQID) have announced that support for Liquid Audio's Internet music delivery system will be integrated into the mobile digital audio player that Toshiba today launched in the Japanese market. This cooperation between the two companies will allow consumers using Toshiba's new player to download Liquid^TM Music from the Internet for copyright-protected playback.

Toshiba's new digital audio player, MEA110AS, is the world's first AAC- and MP3-compatible mobile audio player to feature an SD memory card slot. The SD memory card, a new breed of postage-stamp-sized, high-density flash memory card, supports Content Protection for Recordable Media (CPRM), an advanced copy protection technology.

Liquid^TM Audio's sophisticated electronic distribution and digital rights management system supports the digital delivery of music in all popular media formats, including MP3, AAC and others. Using Liquid^TM Player software, consumers will be able to download music from 1,000 record labels and play it back on Toshiba portable products.

"Integration of Liquid Audio's popular music distribution system with our new portable products will allow our customers to enjoy an unrivalled range of digital music," said Mr. Masao Suga, general manager, Toshiba's Digital Home Products Division.

"Liquid Audio's music delivery system simplifies the consumer experience by enabling access to music in the widest range of digital music formats," said Phil Wiser, chief technology officer at Liquid Audio, Inc. "Together, Toshiba and Liquid Audio are making it easy for consumers using new devices from Toshiba, a leading consumer electronics company, to access and playback a broad selection of CD-quality music."

MEA110AS supports both AAC, high-quality sound compression for music distribution and digital satellite broadcasts that will start later this year, and MP3, today's most widely used format for digital music on the Internet.

Toshiba's new digital music player will be available from April 22, initially in Japan.

About Toshiba
Toshiba Corporation is a global leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as a leading company in notebook PCs, digital audio/visual products, semiconductors, LCD and other advanced devices. Toshiba has 197,000 employees worldwide, and annual sales of over US$40 billion.

About Liquid Audio
Liquid Audio, Inc. is a leading provider of software and services for the digital delivery of music over the Internet. The Liquid Audio solution gives musicians, record labels, Web sites and music retailers the ability to publish, syndicate and securely sell record music online with copy protection and copyright management. Using the Liquid^TM Player software, available for free download at www.liquidaudio.com, music fans can preview and purchase downloadable music from the more than 500 affiliate Web sites in the Liquid^TM Music Network. Traded on Nasdaq under the symbol LQID, Liquid audio is located in Redwood City, California.

Liquid, Liquid Audio, Inc., Liquid Audio, the Liquid Audio logo, Liquifier and Liquid Music are trademarks of Liquid Audio, Inc.
For more information about Liquid Audio software and services call 1-888-liquid-0 or visit http://www.liquidaudio.com.