Live365 will provide audio content for BTopenworld's Internet Sites.

FOSTER CITY, CA (October 24)

Live365 and British Telecom announced today that they had reached an agreement for Live365 to provide audio content to BT for use in all of its Internet access products and content services. BTopenworld users will be able to access all of Live365's 20,000+ Internet radio stations as well as have the opportunity to create their own audio broadcast. This partnership is a key component to Live365's burgeoning international expansion initiative with plans to further expand into Europe, Asia and Latin America.

Under terms of the agreement, Live365 will provide its proprietary technology to BTopenworld, the Internet division of BT, and create co-branded pages featuring Live365 content selected specifically for BT Internet users. The Live365 content will be featured on the radio channels of BTopenworld's Internet sites.

According to Alex Sanford, President and CEO of Live365, "We are delighted to expand into the UK and Europe with a partner as strong as British Telecom and to be able to participate in the Openworld roll-out."

Ben Drury, Music Channel Manager, BTopenworld commented: "Live365 is a great partner to have for our European broadband roll-out. Their technology unleashes the power of broadband and will enable BTopenworld users to create their own radio stations as well as listen to thousands of others."

John Raczka, Senior Vice-President of Content, BTopenworld said: "Being an Expat living in Europe, I personally find Live365 to be a fantastic vehicle for me to be able to listen to mixes of the current charts back home. Live365 is one of the few early broadband content players that apply global dynamics to their content offering. In a way, Live365 fulfills a bit of fantasy most people share in that one gets to be a part-time DJ and radio station all rolled up in one."

About Live365

Live365 is the leading global broadcasting Internet community for individuals, performers and organizations to create, broadcast and listen to Internet radio stations. Providing free tools and the bandwidth necessary to broadcast, Live365 allows anyone with a computer to create his or her own "station" with unique content. With 20,000 simultaneous broadcasts, Live365 currently features more radio stations than the entire United States radio broadcast network. Live365 was called one of the "Top 6 Killer Apps" of streaming media by Deutsche Banc Alex Brown, one of the world's leading international investment banks, in its May 2000 report "Internet, Broadband and Enhanced TV." Founded in July 1999 in Foster City, CA, Live365 is the single largest broadcaster of streaming MP3 audio content on the Web. For more information, go to www.live365.com.

About BTopenworld

BTopenworld is BT's new international mass market Internet business, which is focused increasingly on broadband and mobile services. It brings together in a single business BT's existing mass-market UK and international Internet service providers (ISPs), portals and Open, BT's digital interactive television joint venture. The business is also responsible for Genie, Europe's leading mobile portal and service provider. BTopenworld is responsible for the building of platforms, aggregation of content and the marketing of its services. BTopenworld is one of the largest ISP's in Europe and has joint venture businesses which include: LineOne; Open; Excite UK; Yu.com (Belgium); Arrakis (Spain); Infinito (Italy); Mantra Online (India); BT Looksmart; Anglia Campus.

Media enquiries regarding BTopenworld should be directed to the following consultants at Le Fevre Communications (UK):

Mark Button: 00 44 20 75636400 - email: mark.button@lefevre.co.uk
Richard Leonard: 00 44 1865 202666 - email: richard.leonard@lefevre.co.uk

Forward Looking Statements. Except for any historical information contained herein, the matters discussed in this news release contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties are described in the company's filings with the SEC. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.