SOURCE: SMC Recordings Inc.

March 01, 2010 16:01 ET

SMC Signs Direct Digital Deal With #1 Digital Provider in China R2G to Propel SMC Artists to Hundreds of Millions of Consumers

SAN FRANCISCO, CA--(Marketwire - March 1, 2010) -  SMC Recordings Inc. (PINKSHEETS: SMCE) In the ever-evolving digital market SMC Recordings remains ahead of the curve, announcing today a major deal with R2G, China's leading digital music distribution provider. The ever-expanding SMC remains competitive with major companies such as Universal Music Group, IODA and Warner/Chappell Music who have also partnered with R2G. This deal gives optimum exposure for SMC as China is the 2nd largest Internet user base in the world with 100 million users and the biggest broadband/LAN user base at 43 million; and the largest mobile phone subscriber base with 334 million. The possibilities in China's communication market to grow, as well as its digital users' interest in buying foreign, independent music, create a tremendous amount of opportunity.

R2G (meaning "Red Light to Green Light, and Ready to Go") is the first centralized music distribution platform in China promoting the consumption and commercialization of legitimate digital content downloading. R2G further distinguishes itself through its music domain expertise in digital music licensing and distribution, piracy monitoring and marketing services. This trendsetting company is managed by a team with diverse backgrounds in technology, music, film, legal and finance, and has been at the forefront of the delivery of media and entertainment content in China.

"In our quest to continually expand our worldwide digital business, R2G China is a perfect partner," said SMC CEO Ralph Tashjian.

This deal is another step in SMC's strategy to explore and expand the commercialization of its content. The agreement opens the door for SMC to market directly to China's Internet users, 85% of whom listen to music online. Prior to the establishment of R2G China on-line music fans had to contend with a limited selection of pirated music available via online search engines. A recent survey by a Beijing-based research group found that one-third of Chinese music consumers are willing to pay for music downloads. The study listed music fans' top reasons for being willing to pay for music online as the current inability to find non-mainstream music, and desire for better niche and foreign music.

About SMC Recordings:

Established in March of 2005, SMC Recordings is home to independent music and artists. Based in San Francisco, CA, the company's prized accomplishment is its unique philosophy of artist development, where artists are encouraged to participate with the label from inception through maintenance of their careers. This innovative structure has garnered industry veterans to join the company and aid in its growth.

SMC is distributed by Fontana, the indie distribution subsidiary of Universal. It is SMC's humble regional beginnings and loyalty to their artists and their careers that will guarantee the company to always be on the precipice of creativity and expansion in the music game.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

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