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Executives

Alex Wellins – Investor Relations – The Blueshirt Group

William Christopher Gorog – Chairman and Chief Executive Officer

Suzanne M. Colvin – Vice President, Finance and Interim Chief Financial Officer

Analysts

Michael Olson – Piper Jaffray

Leland Westerfield – BMO Capital Markets

Alan Davis – D. A. Davidson & Co.

Justin Patterson – Morgan, Keegan & Company, Inc.

Barbara Coffey – Kaufman Bros.

Napster, Inc. (NAPS) F1Q09 Earnings Call August 11, 2008 5:00 PM ET

Operator

Welcome to the Napster first quarter fiscal 09 conference call (Operator Instructions) I would now like to turn the conference over to Alex Wellins of The Blueshirt Group.

Alex Wellins

Thanks everyone for joining us on today’s call. With me today are Napster’s Chairman and CEO, Chris Gorog and Suzanne Colvin, the company’s Interim CFO. Today, after the market closed Napster issued financial results for the first quarter of its fiscal 2009. The earnings release referenced in this conference call can be accessed from the investor relations section of Napster’s website at Napster.com as can a webcast of this call.

I’d like to remind you that during the course of this conference call Napster management will make forward-looking statements including predictions and estimates. These statements, including any statements regarding the company’s market position, subscribers, launch and progress of the company’s MP3 store, interoperability with popular music playback devices including cellular phones, relationships with wireless carriers and other partners, expectations for future revenues, operating costs, subscriber acquisition costs, gross margin, cash flows and net losses and the strength of the Napster brand, involve a number of risks and uncertainties.

Actual results may differ materially from any future performance suggested in the company’s forward-looking statements. We refer you to the company’s Form 10Q for the quarter ended June 30, 2008 as filed with the SEC today for important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any obligation to update this forward-looking information.

With that said I’ll turn the call over to Chris.

William Christopher Gorog

Napster delivered solid first quarter revenues of $30.3 million roughly flat to last quarter and reflecting our normal sales pattern at the beginning of the summer season. The company delivered its fifth consecutive quarter of positive cash flow in Q1 highlighting our deep focus on managing the bottom line. The big story in Napster’s first quarter was, of course, our launch of the largest MP3 catalog in the industry. Our goal in converting our entire track sales business in the U.S. to this no DRM format was quite simply to make Napster more attractive, accessible and enjoyable to the broadest audience possible.

This initiative seems to be off to a positive start. We have seen improvement in many of our key business drivers since our MP3 launch including increases in visitation, subscriber conversion and user engagement. And in July we saw a market improvement in our month over month track sales. Overnight, Napster became a friendlier, more exciting place for digital music fans and I look forward to sharing some specific metrics with you today that we find quite encouraging.

Napster’s mobile strategy is obviously a very significant initiative for the company and we remain quite optimistic about its potential as well. Napster Mobile is on track to make our over-the-air mobile music service available to over 12 million of AT&T’s customers in the coming months. We are very encouraged with the attach rates we are seeing on our initial deployment with AT&T and the progress we see to date validates that our internal estimates of how significant this business can become for Napster are right on.

I look forward to giving you a more detailed update on our new activity and trends but first, let’s turn the call over to Suzanne Colvin for our financial report.

Suzanne M. Colvin

As Chris reported, Napster’s revenues for the first quarter of fiscal 09 were $30.3 million. This is nearly flat with revenues of $30.8 million in our seasonally stronger fourth quarter. Excluding revenues from the AOL Music Now subscribers that we transitioned in March 2007 our organic quarterly revenues were up 2% year-over-year at $27.3 million and $26.8 million in the first quarters of fiscal 2009 and 2008 respectively. Geographically, our European revenue grew to 23% of our total revenue compared to 21% in our prior quarter.

Our total worldwide paid subscriber base, as of June 30, 2008, was approximately 708,000. This is down from our subscriber base of approximately 760,000 at March 31, 2008 due to expected fewer new paid growth adds during the summer offset by normal churn levels. Our blended average revenue per subscriber grew to $13.76 from $13.64 dollars in the first quarter compared to the fourth quarter. This is primarily due to an improvement in our product mix. Gross margin was 27% for the quarter, slightly up from 26% in the fourth quarter of 2008 also due to the improvement of our product mix.

First quarter operating expenses totaled $13.1 million compared to $12.9 million in the preceding quarter. On a line item basis, compared to the prior quarter, R&D spending was down $400,000 to $2 million compared to $2.4 million last quarter primarily due to lower personnel costs. Sales and marketing expenses were $4 million compared to $4.4 million in the prior quarter primarily due to our variable based marketing costs that depend on our volume of new subscribers. G&A was $6.5 million in the first quarter up from $5.4 million in the prior quarter mainly due to an increase in legal fees in connection with our defense of certain assorted legal claims that have since been settled favorably for the company.

Napster’s net loss was $4.4 million or $0.10 per share in the first quarter roughly flat with $4.3 million or a $0.10 per share loss in the fourth quarter of 2008. Our first quarter EBITDA loss totaled $2.8 million, a $300,000 improvement from the prior quarter against flat operating losses due to decreased non-cash expenses. EBITDA for the first quarter is computed as our $4.7 million loss from operations offset by non-cash items including $781,000 of stock based compensation and $1.2 million of depreciation and amortization. Napster ended the period with 140 full time employees, up from 133 at March 31.

Moving to the balance sheet, we ended Q1 with $70.3 million in cash, cash equivalents and investments, up approximately $500,000 from $69.8 million at March 31. This was our fifth consecutive quarter of positive cash flow demonstrating our ongoing focus on expense management. We continue to carry a large contingency accrual at June 30 for possible future payments to publishers for publishing fees for which rates have not yet been finalized and against which only partial payments have been made to date. If we had been required to make regular quarterly payments of those music publishing fees at the estimated rates our Q1 cash flow would have been a burn of less than $1 million.

When those music publishing rates are finalized we, along with other online music companies, will be obligated to make retroactive publishing payments. As of June 30, 2008 our balance sheet included an accrual totaling approximately $13 million for these estimated retroactive payments which, once finalized, are likely to be payable during calendar 2009.

Now onto guidance for Q2, we expect our fiscal Q2 revenues to be approximately $30 million reflecting typical summer seasonality. Our revenue level depends upon the pace of our Napster Mobile compatible device rollouts, growth in MP3 sales as well as other new marketing initiatives. We’re targeting Q2 spend that is relatively flat quarter-over-quarter excluding legal expenses which vary depending on the legal matters and claims that arise each period. For the second half of fiscal 2009, considering our stronger holiday seasonal patterns and the anticipated further expansion of Napster enabled handsets through our carrier partners, we expect revenue to increase.

Thanks for your attention and now I will turn it back over to Chris.

William Christopher Gorog

Let’s jump back into taking a look at the improvements to Napster’s core business metrics as stimulated by our new MP3 initiative. The direction we want to head of course is to provide a product to consumers that’s as easy to use, fun and trouble free as possible. The move to the DRM free MP3 format is a huge step forward toward this goal. Let’s look at some recent improvement metrics and I think you’ll see why we are so encouraged.

According to the June 2008 report from a leading web tracking service, visitation to Napster.com April through June is up 17% while during the same period most of our competitors suffered declines. The June report also monitors user engagement which is a metric derived by measuring a combination of visitation, page views and time spent, and Napster scores as the clear leader in engagement amongst all paid music streaming services and most all free streaming music services as well.

Consumers are coming to Napster in greater numbers, having greater interaction and are spending longer amounts of time enjoying the service. This is certainly borne out by our own data which also shows music streams up significantly in recent months which again is a real world indicator for us that we are improving user engagement. Certainly one of the most exciting results of our MP3 launch is customer service issues arising from compatibility difficulties immediately dove 25% and we expect further improvement here as well. Clearly, MP3 downloads are simply easier for our customers to use.

And finally, in terms of specific MP3 sales results as mentioned in our earnings release, track sales per subscriber grew 10% in July versus June with an overall increase in track sales for the same period of 5%. We’re quite pleased with these early results. Our efforts to make our Napster subscription service available as a web based experience that can be enjoyed anywhere, together with MP3s that can be enjoyed on any type of device is core to our strategy going forward. So we are in preparation to roll out these innovations to our European markets this year. These markets are as eager for these innovations as we have been in the U.S. so we are excited about these upcoming deployments.

Our European business continues to make a significant contribution to our sales and therefore we are especially pleased that Napster Germany has recently been named the nation’s best digital music service by ComputerBuild, Germany’s most widely read computer publication. So as we take a step back and consider the development of our online music services over the last year we have clearly become much more successful at more efficiently driving new customer acquisition, and more successful at retaining our customers. The improvement in the efficiency of our model is borne out by the substantial improvement to your bottom line results. In prioritizing substantial improvement to the bottom line, however, there is no question that our top line growth has suffered along the way. Our challenge now is clearly to further innovate with new marketing initiatives, new messaging and undoubtedly new bundles using subscription and MP3s together to more successful attract a broader audience for the unlimited music model.

We feel with our new web based platform and our new MP3 catalog that we now have the tools we need to attract a broader audience with a more exciting and accessible message and we are cautiously optimistic that these very fundamental changes to our product, together with new marketing innovations should return Napster to more robust growth in our online music business overall. But clearly, our most significant opportunity to return to exciting growth is our mobile business. So now let’s bring you up to date on how we are progressing.

Many of you know Napster Mobile is now deployed in eight countries with 12 carriers including the top players in the industry such as AT&T, DOCOMO, O2 and other leading providers. Over the last year we have worked very closely with our carrier partners to achieve deeper integration to position Napster Mobile for substantial growth during this fiscal year. Specifically, we have worked on improving deck placement making the user experience easier and getting music peripherals like headphones, memory cards and USB cards bundled in with music enabled cell phones as well as point of purchase marketing, inbox and Onbox promotions, all of which we believe will help drive adoption of Napster mobile.

To give you an idea of how significant and important all of this blocking and tackling is, Q1 Mobile over-the-air revenue for Napster grew 44% over the prior quarter. This improvement is a direct result of these initiatives and begins to show us the kind of traction and growth we expect to see as Mobile begins to ramp. And the goods is as most of you know our key carrier partners have announced plans to add many millions of new Napster compatible handsets over the coming year, including expanding our addressable base in the U.S. by over 12 million new AT&T customers in the coming months.

As we extrapolate from our current attach rates with mobile handsets we believe that the substantial expansion of our handset ecosystem should deliver handsome growth in Mobile in the second half of the year. We are particularly enthusiastic about the expansion of our platform with AT&T as it is not only a very large base to market to but Napster Mobile is also AT&T’s only partner providing all the frontline catalogs and top hits from the major labels.

We are also expanding our partnership this year with U.S. Cellular, one of the most significant regional carriers in the country. U.S. Cellular has proven to be an excellent partner for us and Napster To Go will now be marketed directly with a number of new U.S. Cellular Smartphones including the recently certified HTC Touch. The big buzz this spring at CTIA, the nation’s largest mobile conference, was that the adoption of wireless data plans is skyrocketing in the U.S. FierceMobile just reported today that the wireless data market grew 40% in the second quarter year-over-year. According to a new report issued by advisory firm, Chetan Sharma Consulting, it is becoming clear that consumers in the U.S. are following the international trend and demanding to use their cell phones to enjoy media on the go. The explosion of data plan adoption in the U.S. means, quite simply, that more and more cell phone users will be able to enjoy Napster Mobile OTA music products.

Moving to other mobile activity Napster Japan’s wireless partner, DOCOMO, recently announced that Napster Japan’s unlimited over-the-air mobile subscription service will now include unlimited Wi-Fi access to high quality digital video, to complement our music subscription service. The new Napster Clips video service puts high quality music video into the hands of trend setting mobile entertainment consumers in Japan. The Japanese market and our relationship with DOCOMO in particular continues to help us push the wireless digital media envelope and these deployments help us prepare for our other global markets to bring state-of-the-art mobile media delivery to the mass market.

As we look to the balance of the calendar year and gearing up for the Christmas selling season, we are working with all of our wireless partners on new marketing initiatives to drive the growth of Napster Mobile. Napster Mobile has one of the most comprehensive platforms and set of mobile music offerings in the industry including over-the-air tracks and over-the-air track pack subscriptions with dual delivery of tracks to consumer’s desktops plus Napster To Go’s unlimited music offering, which provides carriers with a very exciting array of Napster music options for their customers.

To conclude my comments on Mobile we continue to expect a significant contribution from Mobile in the second half of fiscal 09 and Mobile revenues should be our primary source of new growth this year. And now to change gears for a moment and as we think about the upcoming Christmas selling season, we have been busy resetting our very broad Napster prepaid card program and converting all of these track base products to new MP3 offerings. The Napster prepaid cards have always been desirable items at retail, carried by scores of national firms such as Circuit City, Target and many others but we expect even broader distribution and a further uptick in card revenue this year because of our conversion to the friendly MP3 format. Blockbuster for instance has just recently joined our MP3 card program and we expect to add other substantial new retail partners over the coming months.

And last but certainly not least as we add fuel to the fall season we are delighted to announce today a new partnership with Lenovo, one of the largest and fasted growing PC manufacturers in the industry. We expect to soon be shipping on all of Lenovo’s new line of consumer notebooks in the U.S. and Canada providing Lenovo’s customers with a great introduction to Napster To Go. As many of you know hardware bundles have historically been one of Napster’s most effective marketing tools and we expect solid conversion from this new channel.

And finally, some late breaking news: we have just finalized a new Olympics marketing program with AT&T where Napster Mobile is the exclusive mobile provider of full length over-the-air music tracks for Team USA soundtrack songs. AT&T will be promoting the Team USA full length mobile tracks from Napster Mobile extensively on the mobile phone through direct-to-consumer SMS messages and lap banners providing deep links to the Team USA soundtrack songs in the Napster Mobile service. All profits from this initiative will go to support the U.S. Olympic Committee and it’s a great way for Napster to participate with AT&T in the excitement of the games.

So now in concluding my remarks I would like to thank you as always for your interest in Napster. We feel we are making some good progress and are very encouraged that we will see a very strong uptick in our growth in the second half of our fiscal year primarily from our mobile offerings. The team here at Napster is working very hard to deliver the goods for our shareholders and we appreciate your support as we continue expanding our platform and products in this very dynamic industry. Being one of only three digital music companies with revenues in excess of $100 million, as recently reported by Multimedia Intelligence, puts Napster in a very unique and significant strategic position in this industry and we are looking forward to an exciting and productive fiscal year.

We’re now ready to take some questions.

Question-and-Answer Session

Operator

(Operator Instructions) And our first question comes from line of Mike Olson with Piper Jaffray.

Michael Olson – Piper Jaffray

On international that’s clearly starting to gain more traction now being up to, I think you said, 23% of revenue. What do you think when you look maybe this time next year, what could international be as a percent of the revenue?

William Christopher Gorog

Well, Michael, I hesitate to project as a percentage of revenue but very clearly it’s one of the more exciting parts of the Napster story for sure. We are very well managed actually in Germany and in the U.K. Extremely pleased with how efficient we’re creating new customer acquisition in those territories and I think that when you look at a contribution overall from Europe, we clear have further expansion opportunities obviously beyond Germany and the U.K. for our online based services and we obviously are continuing to expand our mobile footprint as well.

So I certainly think I’ll fall short of making a specific prediction about how that will grow but there’s no question that we view it as a very healthy, thriving and exciting sector for our growth going forward. As I mentioned in my prepared remarks we do expect over the coming year to roll out our web based desktop service to our European operations and also roll the transference to the MP3 catalog in Europe as well, both of which we think will further solidify those businesses and position them very well for growth.

Michael Olson – Piper Jaffray

You talked about track sales going month-over-month pretty significantly in July and I’ve asked this before but just wanted to get your take on that growth in track sales. If that continues, what does that mean for the gross margin in the next several quarters? Is there a balancing act that gets played there between gross margin being impacted by track sales?

William Christopher Gorog

I’ll let Suzanne jump onto the back of this response but I think as I mentioned last quarter we are not modeling any significant change to our margins going forward and the reason being is that we are still going to be very unlimited music forward, if you will, in our messaging. We think that having MP3s makes our product much more accessible and attractive to more consumers but our message is not going to be about track for the most part. It is really going to be, if we have a track message it will very much be in the context of combining it with our unlimited music offerings. So the subscription element will continue to be a very important part of our portfolio and therefore a very important contributor to gross margin and as you of course know, Michael, the gross margin for subscription is considerably higher than track.

Suzanne, do you want to add anything to that?

Suzanne M. Colvin

Chris, I think you’ve hit most of the points. Michael, the headline here is that when we look at our mix going forward we’re not modeling anything that’s extremely different and it really is driven by how we intend to market it and package the products to make sure that we retain the product mix that we’ve got today.

Michael Olson – Piper Jaffray

Just one last one is given the stock’s trading essentially in line with cash, you actually grew cash slightly in the quarter. I just wanted to revisit the previous examination of strategic alternatives that the company was doing. Is there anything new on that front that you can share?

William Christopher Gorog

Well, Michael, you know our policy on that and naturally I can’t comment so let’s move on.

Operator

Our next question comes from the line of Lee Westerfield with BMO Capital Markets.

Leland Westerfield – BMO Capital Markets

Just a couple of questions. First, Chris, if you can elaborate a little bit on this subject, not per se of gross margins but general profitability of relative new business initiatives that are underway over the next 6 to 12 months. The reason I’m asking this question is more to understand the matching of timing of different revenue growth that you’re looking at from Mobile and from MP3 sales relative to actually more from the cost standpoint.

And then the second question relatedly is how your cash use rate might change over the coming 6 and 12 months relative to the same revenue and profitability.

William Christopher Gorog

I’ll try to hit those and then Suzanne may want to comment and add some detail. As we look at the product mix going forward we are still very clearly, as I mentioned to Michael, going to have a subscription message. Unlimited music is really core to our brand and that still will be very forward in how we talk to customers. Obviously, we talked about track sales and MP3. If you look at the Mobile side of the equation we have our mobile partners helping us drive Napster To Go adoption which has very attractive margins relative to our other margins. We have a couple of products in our OTA category, over-the-air single tracks, but more exciting for us is the over-the-air track pack subscriptions which end up yielding higher margins.

When you take all in, I’ll address cost in a moment, but when you take all of that from a revenue perspective and those individual cost structures and mix it into a stew, although I can’t explain in much detail and Suzanne can try to jump on and help me out, but basically we feel our margins will be very similar to what they are now and certainly the primary contributor to that is our base subscription businesses but also some of our new Mobile businesses.

In terms of cash use, as we look at cash use going forward we still intend to be highly disciplined about how we are creating new customers for our products. Very clearly we have been bottom line oriented over the last year. Those results speak for themselves and we don’t see anything on the horizon really changing that ethic. We are very fortunate in our mobile initiatives to have very powerful carrier partners that do a lot of the heavy lifting for us on the marketing side. So I think that, particularly in mobile, Napster has the possibility of having a very large presence just in this nation, for example, without Napster reaching into our tills to throw a lot of marketing dollars to drive those businesses. So this is why very substantial carrier partners are very important to us and why we’ve worked so hard over the last 24 months to line up these partnerships.

Suzanne, do you have anything you want to add to this one?

Suzanne M. Colvin

Yes, I guess I would add one thing, Lee. You asked in your question about new initiatives and the other thing that we’ve talked about in this call that you may be thinking about is where Chris discussed the international growth and the efforts to roll our web base and our MP3 products out to Europe, and I would point out or say the resources we’re going to use to do that rollout and that particular new initiative are existing resources that we have within R&D. So we’re not planning any large capital outlay related to that particular initiative and I would just reiterate that cash preservation remains a key tenant for us. We are striving to make sure that we stay cash flow positive related to our ongoing operations and save that cash for some special thing some day, if needed. But right now when you ask 6 to 12 months about new initiatives, the ones that we’ve got underway are ones that we’re going to fund internally at this point.

Operator

Our next question comes from the line of Alan Davis with D. A. Davidson and Company.

Alan Davis – D. A. Davidson & Co.

Yes, I apologize. I missed two numbers here. Could you give me the stock based compensation and the depreciation amortization for the quarter?

Suzanne M. Colvin

Yes. Stock based comp is $781,000 and depreciation and amortization is $1.2 million.

Alan Davis – D. A. Davidson & Co.

And then one of you talk about with the increased traffic shares site following the MP3 launch, just talk about your success in getting subscription trialers signed up, how that’s going.

William Christopher Gorog

Well, Alan, it was a mixed bag last quarter because we did have greater visitation. We also had stronger conversions so we had some very good metrics working for us. We had good customary flat churn rates quarter-over-quarter but we also churned out this quarter our university subscribers that we do every summer. We also had an old Cingular promotion. It was a 12 month promotion that came to an end in Q1 so we had those customers rolling out. So that affected the overall subscriber rolls but basically we did find that visitation, we were able to exploit the higher visitation numbers by also improving our conversion numbers and so we were pretty pleased with that.

The other thing I mentioned in my prepared remarks is we’re also very pleased to see that our existing subscribers and new subscribers were purchasing more MP3 tracks. So we’ve always said that we felt a subscription environment of unlimited music actually drove track sales and this is exciting to see when we’ve moved from a restrictive DRM permanent download to an unrestricted MP3, that our subscribers are having more fun with the service and making more purchases.

Alan Davis – D. A. Davidson & Co.

I know you broke up those organic numbers in terms of organic versus the AOL or excluding the AOL subscribers. Are the AOL subscribers running into higher churn rates still?

Suzanne M. Colvin

No, actually, that customer base is pretty much operating like our normal base. They’re ahead of our original plans and are doing very well.

Operator

Next question comes from the line of Tavis McCourt with Morgan Keegan.

Justin Patterson – Morgan, Keegan & Company, Inc.

This is Justin Patterson for Tavis. Just had a quick question. You’d mentioned university subscribers there. Now were you referring to the “Prettiest Napster University Service” or did you just mean university in general?

William Christopher Gorog

Yes, our subscribers that we gained on our subscribers are all through our university program. They roll off at the end of each school year.

Justin Patterson – Morgan, Keegan & Company, Inc.

How many subscribers was that?

William Christopher Gorog

Suzanne, I don’t know if we’ve broken that out.

Suzanne M. Colvin

We haven’t for a while. It’s not that many.

Justin Patterson – Morgan, Keegan & Company, Inc.

Not that many, okay. Now in terms of the 40% sequential over-the-air growth, clearly impressive but looking back it looks like you had about three carrier additions intraquarter during Q4 08. If you back out for that contribution right there, what was OTA up excluding that contribution?

William Christopher Gorog

Gosh, Justin, I think we’d have to take that one offline because I certainly don’t know off the top of my head what those contributions from the new carriers were. I don’t believe we announced three new carriers last quarter so, well, let’s take that one offline.

Justin Patterson – Morgan, Keegan & Company, Inc.

Now in terms of AT&T, it looks like you’re sticking to the 12 million handset target. Has any of those begun to roll out so far?

William Christopher Gorog

The full 12 million should be in the market over the next few months, Justin, and I think that it’s best for AT&T to cover their public disclosures about how much they’ve gotten out there and which handsets and so forth but our indications from AT&T, as they’ve said in their public press releases, that we will be hitting over 12 million customers. It certainly will begin this summer and really should be rolled out in its entirety over the next few months.

Justin Patterson – Morgan, Keegan & Company, Inc.

Now finally, just in terms of international can you comment about how much of a currency benefit you received this quarter on the top line?

William Christopher Gorog

Suzanne, you want to hit that?

Suzanne M. Colvin

Yes. I don’t have the quantification broken out. I would tell you it’s not been that big. There definitely is a little but not that much because we tend to keep the cash in Europe, in Euros and pay the bills in Euros so we don’t get an enormous FX impact.

Operator

Our final question comes from the line of Barbara Coffey with Kaufman Brothers.

Barbara Coffey – Kaufman Bros.

As you’re taking a look at the lineup for phone coming up for the holiday season, both with and without over-the-air transfers, are there certain milestones we should be looking at from the carriers or from the cell phone manufacturers that you’d give us early indications that you are or are not on track for the plans rolling out through the holiday?

William Christopher Gorog

Barbara, I think the best way I can answer that is it should be self evident over the next handful of months. I think the next time we talk you would be seeing very obvious evidence of Napster Mobile deployed pretty broadly.

Barbara Coffey – Kaufman Bros.

Any sort of peek as to will this be the television marketing or more do you perceive it to be in envelope direct marketing for those to convert phones, et cetera or in stores? Do you want to tip their hand for them to tell us where we should start seeing this stuff first?

William Christopher Gorog

Yes, I can’t really comment on the marketing plans of our carrier partners except that they do have extensive marketing plans and I think they should be very effective.

Operator

Management, at this time I’ll turn it back to you for closing comments.

William Christopher Gorog

Thank you very much for your attention this afternoon and I will see you soon.

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Source: Napster, Inc. F1Q09 (Qtr End 06/30/08) Earnings Call Transcript
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