SOURCE: Fuego Entertainment, Inc.

August 13, 2008 07:30 ET

Fuego Entertainment and The Orchard Spark New Licensing Deal, Expand on Latin Music Distribution Pact

Fuego Entertainment to Add More Than One Million Orchard Tracks, Including Thousands of Top Latin Songs, for Digital Download Store

MIAMI, FL--(Marketwire - August 13, 2008) - Building on a longstanding relationship to globally market and distribute its diverse Latin artist roster, Fuego Entertainment, Inc. (OTCBB: FUGO) today announced a new deal with The Orchard (NASDAQ: ORCD), a global leader in digital music and entertainment, to add more than 1.1 million tracks from The Orchard's catalog to the digital download store

The addition of The Orchard music catalog, which includes one of the largest and best Latin music offerings available, will increase the total tracks available for sale on the Fuego music store to about 2.5 million tracks, moving Fuego Entertainment into the ranks of the world's largest digital music retailers. In addition to the hundreds of thousands of songs spanning nearly every genre, The Orchard will deliver a diverse offering of Latin artist tracks by the likes of Daddy Yankee, Joan Sebastian, Hector Lavoe, Antonio Aguilar, Willie Colon, Cuisillos, Ivy Queen, and many more.

With digital music sales in the US now accounting for 30% of all revenues, and a growth rate of around 40%*, Fuego Entertainment is continuing its aggressive expansion in the world-wide digital retail music market. As The Orchard's music catalog continues to grow, new releases will be automatically added to the rapidly growing digital download offering through integration with The Orchard's powerful V.E.C.T.O.R. content ingestion, management and online delivery system, which works seamlessly with hundreds of global storefronts for digital music and video delivery. The relationship will be supported with regular marketing and promotion across the service.

Additional terms were not disclosed.

Greg Scholl, President and CEO of The Orchard, said, "Fuego Entertainment has been an outstanding label partner, helping us to establish our place as the premier digital distributor and marketer of Latin music. We look forward to building upon this relationship and playing a part in Fuego's continued and much-deserved growth by providing our diverse catalog for distribution through the store."

"We are extremely exited to bring our partnership with The Orchard full circle. They've been an invaluable supporter of Fuego, both in distributing and marketing of our own artist roster, including Jessie, Alejandro Azua, Juan Diego and Clan 537. Introducing their incredible catalog to our service is giant step in our present and future plans, to make the most of this new era of digital sales and distribution," stated Hugo Cancio, President and CEO of Fuego Entertainment.

The Orchard (NASDAQ: ORCD), a global leader in digital music and entertainment, controls and globally distributes more than 1.1 million songs and over 3,000 hours of video programming through hundreds of digital stores (e.g. iTunes, eMusic, Google, Netflix, V CAST) and mobile carriers (e.g. Verizon Wireless, Vodafone, Bell Canada, 3).

Fuego Entertainment, Inc. is engaged in the production, acquisition, marketing, sales, and distribution of entertainment products. For more information, please visit Fuego Entertainment at

This press release contains statements, which may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Fuego Entertainment, Inc., and/or The Orchard Enterprises, Inc., members of their respective management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause results to differ materially from those contemplated by such forward-looking statements are contained in Fuego Entertainment's and The Orchard's filings with the Securities and Exchange Commission, including their most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

* IFPI Digital Music Report, 2008

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