PhatNoise and Mazda Announce Partnership to Distribute Award-Winning Digital Media Player at Over 700 Dealerships Nationwide

Innovative PhatNoise Digital Media Player Continues to Win Support From Major Automotive Manufacturers as the Standard for Seamless In-Car Access to Digital Music

LOS ANGELES, Aug. 2 -- PhatNoise Inc., a leading provider of automotive digital entertainment solutions and Mazda North American Operations announced today that the PhatNoise Digital Media Player will be available this August at Mazda's more than 700 dealerships in the U.S. Custom designed for the new MAZDA3, the MAZDA6, the MX-5 Miata and the RX-8, the PhatNoise Digital Media Player integrates directly with each vehicle's existing stereo and steering wheel controls, plus features voice feedback for easy and safe navigation of thousands of your favorite songs.

With 20GB of storage, the PhatNoise Digital Media Player has a virtual capacity of 500 CDs, all stored digitally and organized by Artist, Album, Genre or personal Playlist. The system also includes easy-to-use PC software and a USB cradle for simple, one-click transfer of content from home to car.

"Our target customer is adopting the latest music technologies and they want a car that offers them a great digital music experience," said Jack Stavana, Director, Accessory Operations, Mazda North American Operations. "Working with PhatNoise was an easy decision. They are the leader in creating exciting digital music products for the car, and have a proven solution that we could customize and bring to market without any redesign of our vehicles. It's a win for us and for our customers."

Mazda, who has been at the forefront of supporting next-generation platforms for accessing digital music in vehicles, notably with the successful Mazda MP3 specialty vehicle, is the latest major car company to endorse the emerging PhatNoise standard for in-car digital playback of music and spoken word books.

"We are delighted to be working with Mazda on this new program as they continue to prove that entertainment leadership is one of their core strengths," said Sharon Graves, Chief Executive Officer of PhatNoise. "There is no question that we are seeing a trend towards the portability of digital music, and PhatNoise is at the forefront of providing this technology to the automotive industry in a truly integrated fashion. It is great to see these solutions becoming more widely available for the car, and we look forward to announcing additional partnerships in 2004 as other automakers join Mazda, Volkswagen, Audi and General Motors as PhatNoise customers."

The PhatNoise system is also available under the Kenwood Music Keg brand, at Volkswagen and Audi dealerships worldwide, and General Motors has also announced that its upcoming crossover sports vans from Saturn, Pontiac, Chevrolet and Buick will feature PhatNoise systems as a premium entertainment option.

For more information on PhatNoise and its technologies and products, visit www.phatnoise.com

About Mazda

Mazda North American Operations is responsible for the sales and marketing, customer parts and service support of Mazda vehicles in the United States. Headquartered in Irvine, Calif., MNAO has more than 700 dealerships nationwide.

About PhatNoise

PhatNoise Inc. is a leading innovator in the drive to create seamless automotive access to the digital world. The company's advanced platforms and software for digital media offer complete solutions for introducing digital content into the automobile to enhance the consumer entertainment experience. PhatNoise creates products and technology for license and distribution by leading partners in the automotive and consumer electronics industries including Kenwood, Volkswagen and General Motors.

For more information on PhatNoise and its technologies and products, visit www.phatnoise.com