E1 Entertainment Distribution U.S. (Formerly KOCH Distribution) Partners With RightsFlow For Mechanical Licensing And Royalty Services

Port Washington, NY - April 30, 2009 - E1 Entertainment Distribution U.S. (formerly KOCH Distribution), the USA's leading and fastest-growing independent music company in the U.S, and RightsFlow, a provider of bulk mechanical licensing and royalty services, announced today that E1 will offer its distributed labels the ability to utilize RightsFlow's proprietary mechanical licensing 'FLOW' system to license, account, and pay publisher royalties for DPD, interactive streams and limited downloads, including subscription and ad-supported models.

"Partnering with RightsFlow allows E1 to provide its distributed labels with access to RightsFlow's unique, cost-saving, bulk mechanical licensing program" stated Michael Rosenberg, President of E1 Entertainment Distribution U.S. "In RightsFlow, we have a proven partner who can manage this important area of our distributed labels' business. By relieving themselves of the burden of this time-consuming and increasingly complex task, our labels have more time and energy to do what they do best - produce content for E1 to distribute - and publishers and songwriters rights are properly licensed and compensated."

"RightsFlow is delighted to enter into this relationship with E1 Entertainment," adds Duncan Hutchison, Chief Content Officer of RightsFlow. "We are excited to demonstrate how RightsFlow's proven one-stop solution can provide E1's labels the cost-saving benefits of off-loading their mechanical licensing, accounting, and royalty needs."

Under U.S. Copyright Law, mechanical licenses are required for music to be distributed through online music services. The current U.S. statutory mechanical rate for permanent downloads is 9.1¢ for songs five minutes or less and 1.75¢ per minute for songs over five minutes. Limited download and interactive streaming services generally pay a mechanical royalty of 10.5 percent of revenue, less amounts owed for performance royalties. To ensure publishers and songwriters are properly compensated under U.S. law, RightsFlow's licensing service utilizes the bulk licensing system of The Harry Fox Agency, Inc. (HFA), a leading U.S. music rights licensing organization, as well as bulk licensing systems used by the thousands of publishers not represented by HFA.

About E1 Entertainment:
E1 Entertainment (AIM: ETO) is a leading independent entertainment content owner that acquires film, television and music rights and exploits these rights in all media in more than 190 countries. The company currently operates in Canada, the U.S., the UK, Holland and Belgium through its four primary businesses units: E1 Television, E1 Films, E1 Music and E1 Distribution. These businesses collectively represent E1's extensive expertise in film distribution, television and music production/distribution, Kids content, Licensing and Distribution. E1's content library includes more than 3,700 feature films, 2,700 hours of original television programming and 15,000 music tracks. For more information, visit us at: http://www.kochdistribution.com.

About RightsFlow:
RightsFlow offers Mechanical Licensing & Royalty Solutions for labels, distributors, and online music services. We specialize in obtaining bulk mechanical, DPD, and ringtone licenses including streaming, tethered, and limited downloads rights. Our proprietary "FLOW" system allows us to license, account, and pay royalties directly to the Harry Fox Agency (HFA) and the thousands of publishers not represented by HFA. Today, RightsFlow services over 1,500 labels for mechanical and DPD licensing. Some of the many clients we service include marquee companies such as Muzak, EMI Music, Active International, CD Baby, IODA, Audible Magic, YouLicense, Constellation Wines (Blackstone), X5 Music Group, Zebralution and Disc Makers, among others. For more information on RightsFlow's services and management team, visit http://www.rightsflow.com.