Somerset Entertainment Income Fund

Somerset Entertainment Income Fund
Fluid Music Canada, Inc.

September 10, 2008 14:00 ET

Fluid Music Canada, Inc. and Somerset Entertainment Income Fund Report Progress on Proposed Acquisition

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2008) -


Fluid Music Canada, Inc. ("Fluid") (TSX:FMN) and Somerset Entertainment Income Fund ("Somerset") (TSX:SOM.UN) announced today that significant progress has been made by both parties in relation to the proposed acquisition of Somerset by Fluid previously announced on July 15, 2008.

"We are pleased with the co-operation we have received from Somerset and its senior management," said Lorne Abony, Chief Executive Officer and Chairman of Fluid, "without which we could not have made the significant progress with our due diligence that we have made to-date. While our due diligence is not yet complete, we are certainly confident enough that we are proceeding to negotiate the definitive documentation required to move this transaction forward. Through the proposed acquisition of Somerset, we will create an entirely new kind of digital music business, focussed on and positioned to dominate the profitable and growing specialty music category."

"We have agreed to extend the exclusivity period previously granted to Fluid until September 30th so that Fluid may complete its due diligence investigations and we may finalize the definitive documentation," stated Andy Burgess, President and Chief Executive Officer of Somerset. "We continue to be excited about the proposed acquisition and I look forward to assisting Fluid leverage Somerset's significant distribution network and specialty music expertise to build a profitable on-line business."

The obligation of Fluid to make any offer in furtherance of the proposed transaction remains subject to negotiation of a definitive agreement with Somerset, as well as support agreements with certain of Somerset's unitholders (including management), due diligence, financing and other customary conditions for transactions of this nature. Likewise, Somerset's obligation to support any such offer is subject to the negotiation of the definitive agreement with Fluid, a favourable fairness opinion from Somerset's financial advisor, due diligence and other customary conditions for transactions of this nature.

Given the conditions that must be satisfied for the proposed transaction to proceed, there can be no assurance that the transaction will be completed on the terms previously described in the July 15, 2008 joint news release of Somerset and Fluid, or at all.

Forward-Looking Statements

Certain statements in this news release contain "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Fluid or Somerset to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When appearing in this news release, these statements use such words as "may," "will," "intend," "should," "expect," "believe," "plan," "anticipate," "estimate," "predict," "potential," "continue," the negative of these terms or other similar terminology. These statements, including statements relating to the proposed acquisition and Fluid's access to financing to effect the proposed acquisition, reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, failure to proceed with the proposed transaction, that the proposed transaction is proposed or completed on terms other than as previously disclosed by Somerset or Fluid, customer concentration, the exchange rate between Canadian and US dollars, lack of written customer contracts, reliance on suppliers and other risks described in Somerset's Annual Information Form dated March 26, 2008 and Fluid's IPO prospectus dated June 12, 2008 (both of which can be found at The forward-looking statements contained in this news release are made as of the release date of this document, and, except as otherwise required by law, neither Fluid nor Somerset assumes any obligation to update or revise such statements to reflect new events or circumstances.

About Fluid Music Canada, Inc.

Fluid Music is a leading private label music aggregation and distribution company, providing music solutions to both business and individual consumers. The company has compiled a music library of over five million songs, free of digital rights management restrictions, from a diverse network of producers, including major label, independent and emerging artists. Additional information relating to Fluid Music Canada, Inc., including its IPO prospectus, is available at and

About Somerset Entertainment Income Fund

Somerset Entertainment Ltd. is the leading North American producer and distributor of specialty music sold through non-traditional retailers using proprietary interactive displays. The company has 19 diverse product lines targeted at consumers over the age of 30, which represents a variety of music genres, including world, relaxation, jazz, classical, children's and hit compilations. The Company's extensive distribution network includes mass merchants, specialty chains and independent gift stores in more than 20 countries. Based in Toronto, Canada, the company employs over 180 people at offices in Toronto, Ontario (Canada); Buffalo Grove, Illinois, and Minneapolis, Minnesota, (U.S.A.); and Essex, England (U.K.). Units of Somerset Entertainment Income Fund are traded on the Toronto Stock Exchange under the symbol SOM.UN. Additional information relating to Somerset Entertainment Income Fund, including unaudited financial information as of June 30, 2008 is available at and

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