Cdnow Announces Expansion of Agreement with Yahoo!

CDnow Announces Expansion Of Agreement With Yahoo! CDnow Named the Premier Music Retailer for Yahoo! Mail and Yahoo! Music Chat Rooms Jenkintown, PA -- (April 7, 1998) -- CDnow, Inc. (NASDAQ: CDNW), the Internet's number one music retailer, today announced it has expanded its current agreement with Yahoo! Inc (NASDAQ: YHOO). CDnow is now the premier music retailer for Yahoo! Mail and music chat rooms. CDnow will continue its relationship as a premier music retailer on Yahoo!®'s main directory, www.yahoo.com, as announced in August of 1997. As part of the expanded agreement, CDnow receives promotional exposure throughout Yahoo! Mail (http://mail.yahoo.com) and Yahoo! Chat (http://chat.yahoo.com). CDnow is featured on the Yahoo! Mail welcome page, allowing users to access the world of music through a special CDnow button. From the welcome page, CDnow is extending special offers and promotions to Yahoo! Mail users. In addition, users can go to the Yahoo! Mail log out area to access CDnow's "Top Ten Best Seller List" for the previous week and receive a 30 percent discount off any CD on that list. The expanded agreement also establishes CDnow as the premier music merchant in Yahoo!'s music chat rooms. "Yahoo! was our first major e-commerce distribution agreement, and we are excited to be the premier music retailer for Yahoo! Mail," said Jason Olim, CDnow President and CEO. "We have expanded our presence on the Internet's number one navigational service, which continues to be one of the leading ways consumers explore and discover the Internet. Through Yahoo! Mail, CDnow has the opportunity to reach vast new audiences." "Expanding CDnow's distribution on Yahoo! is a natural next step in our agreement," said Ellen Siminoff, vice president of business development at Yahoo! "CDnow's consumer services are a great value add for our Yahoo! Mail and Yahoo! Chat users." About CDNow (cdnow.com) CDnow, Inc (cdnow.com) offers more than 250,000 music related items - five times the size of the average music store. Founded in 1994 by twin brothers Jason and Matthew Olim, CDnow is building a better music store by offering music fans personalized album recommendations, music samples and a vast library of information on artists, releases, reviews and features from top writers in the music industry. CDnow shoppers navigate through musical genres including: Rock & Pop, Country & Folk, Urban & Electronic, Jazz & Blues, World & New Age and Classical. CDnow's premier marketing partnerships include Yahoo!, Lycos, WebCrawler, GeoCities and Love@AOL. # # #