Franklin, Tenn. — PassAlong Networks™, Nettwerk Music and Digonex® Technologies today announced the launch of a joint variable-priced MP3 pilot, the music industry's first offering of fully variably priced downloadable music. Using patented Digonex pricing technology, PassAlong is able to adjust retail pricing on a weekly basis for Nettwerk Music's MP3 catalog.

Album prices are adjusted up or down according to the consumer demand-driven Digonex pricing engine, which systematically changes pricing based on Internet economics and consumer behavioral principles. Most album prices fluctuate between $3.30 and $9.99. Singles are dynamically priced at one of three possible price tiers: $.33, $.66 or $.99.

"We are thrilled to partner with Nettwerk and Digonex to launch this pricing pilot, a true industry-first for music downloads," said Dave Jaworski, co-founder and CEO of PassAlong Networks. "We are extremely optimistic about this test and we think that it will show how dynamic pricing can benefit the marketplace."

Consumer demand helps determine the pricing for approximately 150 fully variably priced albums and the appropriate price tier for more than 1,500 singles. Prices will be updated at noon CDT every Wednesday throughout the test. The variably priced albums and tier-priced singles are offered through PassAlong's digital media services engine, StoreBlocks™, which currently powers more than 130 music download stores including JAZZIZ Magazine and TransWorld's f.y.e. – for your entertainment online music store.

"Nettwerk is extremely interested in how varying pricing in the marketplace affects consumption," said Brent Muhle, who leads digital initiatives for Nettwerk. "Digonex and PassAlong have a created a mechanism that allows our artists to define the market with their fans rather than passively participating with retailers." Nettwerk Music's MP3 catalog is made up of dozens of artists including Sarah McLachlan, Barenaked Ladies, Leigh Nash and The Weepies.

"Nettwerk and PassAlong are to be commended for their pioneering spirit in adapting Digonex's Dynamic Pricing system for this pilot," said Jan Eglen, CEO of Digonex Technologies, Inc. "This launch represents the first deeply rooted technological and business effort to address the two major banes to the music marketplace - fair pricing and wide interoperability."

The pricing pilot runs through late 2007 and can be accessed at http://MP3.storeblocks.com. Throughout the pilot consumer responses and pricing results will be reviewed and adjustments made accordingly.

About Digonex Technologies, Inc.
Software developer Digonex Technologies focuses primarily on development of automated and optimized pricing platforms for e-commerce, allowing client companies to increase customer retention and maximize revenue. For more information, visit Digonex Technologies' website at www.digonex.com.

About Nettwerk Music Group
Nettwerk Music Group is Canada's leading privately owned record label and artist management company, responsible for managing some of North America's biggest artists such as Sarah McLachlan, Avril Lavigne and many others. Nettwerk has several offices located around the world including New York, Los Angeles, Boston, Nashville and London. Its home office is in Vancouver, B.C.

About PassAlong Networks
PassAlong Networks is a developer of digital media innovations and services designed to enhance the Connected Consumer™ ecosystem. PassAlong's B2B2C technology engine provides four key services for the digital media marketplace: StoreBlocks™ offers a variety of store–building tools to enable clients to provide their end–consumers with a library of nearly 3 million licensed songs and the powerful music referral system, Passing–and–Points™; freedomMP3™ provides interoperability for digital media files, including raw MP3 files, across multiple platforms and devices while promoting a balance of artist rights and media empowerment for both content creators and consumers; OnTour™ connects fans to detailed, accurate and relevant concert notifications; and Speakerheart™ enables artists to seamlessly upload, promote and sell their digital music. Founded in 2002, PassAlong Networks is privately held and based in Franklin, Tenn. For more information, visit http://www.passalongnetworks.com.

OnTour, StoreBlocks, freedomMP3, PassAlong, Connected Consumer, Passing-and-Points and Speakerheart are trademarks of PassAlong Networks. All other brands are trademarks of their respective owners.

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PassAlong Networks PR Contacts:
Lindsay Cleveland
PassAlong Networks
B: 615.425.5864

Skip Franklin
PassAlong Networks
B: 615.425.5999


Jeff Fox
The Blueshirt Group, for PassAlong Networks
B: 415.828.8298