SOURCE: Nashville Records, Inc.

December 10, 2007 11:38 ET

Nashville Records™ Acquires Online Payment Processor

NASHVILLE, TN--(Marketwire - December 10, 2007) - Nashville Records™ (PINKSHEETS: NSHV) has acquired QuestPay™ and anticipates launch of the new site in March 2008. QuestPay is very similar to the popular site PayPal but with additional features. It is a payment system that enables individuals or businesses to send or receive money online. It will be free to join for all participants. When transactions occur income is generated for Nashville Records, as the Company owns 100% of QuestPay.

QuestPay will operate as an online payment processor with a unique philosophy to the industry; the Company will revenue share with its subscribers through an online affiliate program. The affiliate module is complete and uses code that did not need reinvention as it most closely matches the affiliate program of but with supplementary features.

Programming is about 98% complete. The layout & design is 100% complete. The hosting is ready for the pending beta to test for functionality. Subscribers can use the service for online auctions or nearly any other platform where products or services are bought or sold. Even "brick and mortar" businesses will be able to use QuestPay to process transactions.

At first glance it may not seem like QuestPay is congruent with a record label but work has been ongoing for nearly two years because it is a designed integral component of TriMark™ anti piracy technology that is planned for the future. It will also benefit the label by eliminating high interest third party payment processors.

QuestPay anticipates creating a module in the future specific to all industries where royalties are collected and paid, such as the entertainment industry, book publishers, and other royalty based industries. The system can calculate the totals earned/paid and can minimize costs and accounting for users of the service. For the entertainment industry, Congress sets the royalty standards and QuestPay will know years in advance what royalties will be.

Programming for the site began in March of 2006, along with the layout & design. The Website address is: The Company was awarded a Trademark. The look and feel of the Website is designed with an attractive, eye-catching design utilizing an antique navigational and trading feel. All interactions with the Website will include fun and creative titles, logos, and navigation while being professional. All artwork and design is original.

Beta testing is essential to test the system, eliminate anomalies, give the company time to secure all licensing with all required States as a money transmitter, and retain management. The Company needs ample time to beta test but the site will start generating revenue from the time it is launched.

Not only will the company receive revenue from every transaction conducted, it receives revenue from upgrades, as well as all sales and advertising conducted on the main site and through the QuestPay Store Front™. The Store Front is a module that will be implemented after adequate beta testing has been conducted and a sufficient customer base is established. The Store Front module is complete however and can literally launch in one day.

The principle behind the QuestPay strategy is to motivate customers to remain loyal. This system is patterned after an affiliate sales structure and will be promoted mostly through the end user base, which will greatly reduce marketing and promotion costs of a typical business. We believe QuestPay will be an excellent choice for consumers seeking an alternative payment processor.

PayPal is a phenomenal business that controls 65% of this market and transacts billions of dollars per quarter. We believe we can carve market share that will be highly profitable because we believe we can retain the customer better than most competitors with competitive rates, an affiliate program, and by minimizing marketing costs. QuestPay provides a method of not only retaining a more loyal and honest customer base but it will lower its taxable income by channeling about 32% of site-generated revenue with subscribers. Because the company only has to claim about 68% of the sites generated revenue the overall tax burden is greatly reduced.

In addition to the features discussed above the Company anticipates entering a co-op with a financial institution to offer a QuestPay™ Credit card. This card can be used virtually anywhere in the world and would earn a percentage for the company on every transaction conducted. This will not require additional work on the company's part, since the financial institution will handle all aspects of applications, transactions, and accounting. The design for the card is complete but when it launches it will be the only design offered for reasons of branding.

The Company will put zero emphasis on earning potential as an affiliate. Thousands of companies have perished for making earning claims. These types of companies come under scrutiny from monitoring agencies, and more often than not, get shut down. A critical key success factor is downplaying any earning potential. The Company will never show affiliate earning charts, projection graphs, nor ever state that any income will be derived as a result of participation. The Company will never promote the selling of a "business opportunity." Further, the Company will prohibit affiliates from making earnings claims and those that do forfeit their membership. Affiliates may only use Company provided banners, graphics, online videos, and hyperlinks for promotion.

Two Nashville Records™ founders also founded QuestPay and paid for it along the way but they will not manage the business. They will remain on the Board but QuestPay will seek a professional management team and ramp up as necessary. The company firmly believes that revenue streams outside of the music business are needed to sustain long-term objectives. It has become commonplace for individuals to simply copy music and never pay for it, even if it is illegal. This has had a major negative impact on the music industry. Therefore, diversifying and adding business models such as QuestPay are critical to the long-term success of Nashville Records.

Legal Notice Regarding Forward-Looking Statements

The statements in this press release that relate to the Company's expectations with regard to the future impact on the Company's results are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This information may contain statements that involve risk and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.

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