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The Singing Machine Co. Signs License Agreement With MTV; Singing Machine Will Produce Line of MTV-Branded Karaoke Equipment and Related CDs.

COCONUT CREEK, Fla.-The Singing Machine Co. (OTC:SING), a leading manufacturer and distributor of electronic karaoke equipment and related audio software, announced today that it has signed a multi-year, domestic merchandise license agreement with MTV to create the first line of MTV Karaoke Machines and compact disks with graphics (CD+G) featuring music for MTV's core audience.

"Singing Machine is thrilled to partner with MTV in this exciting new project. Teaming with a multidimensional youth brand like MTV is a terrific opportunity for Singing Machine to capture the imagination of music-oriented consumers and increase awareness of our karaoke hardware and software for home use. MTV's presence provides an enviable platform for Singing Machine to launch several very compelling new products in the U.S. marketplace," said John Klecha, chief operating officer of Singing Machine.

Heidi Eskenazi, vice president, licensing and merchandising, MTV, said, "We are very pleased to be working with Singing Machine to give our viewers a piece of MTV right in their own homes. Our on-air show 'Say What Karaoke' continues to be a hit with our audience, and we believe that the MTV Karaoke Machine will be a fun and entertaining product for our viewers."

Under the agreement, Singing Machine will produce two MTV-branded products: a large format karaoke machine with a built-in, fully functional television that enables users to view song lyrics; and a smaller karaoke system that connects to a television. Singing Machine also will produce exclusive CD+Gs featuring music catering to MTV's core audience that will be distributed with the MTV-branded karaoke machines.

Klecha added, "We plan to distribute the MTV-licensed products through Singing Machine's established distribution channels, including Best Buy, Costco, Toys R Us, JC Penny, Sears, Mars, Musicland, and Sam's Club. This high-profile distribution network also may be expanded to include online-only retailers. Our alliance with MTV is a key to our strategy to bring Singing Machine's exciting products to large new markets."

MTV will unveil its first extensive electronic music line on Jan. 6, in Las Vegas at the 2001 Consumer Electronics Show. MTV Karaoke Machines should be available in stores beginning in Spring 2001.





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