METASwarm Announces Entry into Booming China Mobile Music Sales Industry

Monday June 25, 6:30 am ET

SANTA MONICA, Calif., June 25 /PRNewswire-FirstCall/ -- METASwarm, Inc. (Pink Sheets: MSWM -News) today announced a Memorandum of Understanding with JiaYu Music Corp to create a system framework for the sale of mobile music through validated channels. Mobile music in China, also called wireless music, encompasses mobile phone ring tone, color ring back tones and mobile phone MP3 music. The sale of ringtones in China is a multimillion dollar business, with many users buying new ringtones on a weekly basis. According to China's Ministry of Information Industry (MII), sales of ringtones in China are estimated to have been over $360 million in 2006.

The wild popularity of downloading mobile music has lead to many fraudulent schemes throughout China. Users often cannot trust the validity of the merchant from whom they try to buy their mobile music value-added content. METASwarm's system will use the company's validated SMS messaging technology to interface between users and the telecom network to certify and authorize purchases.

Using METASwarm's HyperSwarm and Topic Analysis technologies, the Company will be able to create Top 20 ratings lists of various music categories. These ratings will be derived from user download behaviors, and Topic Analysis of music interest sites in Greater China. These HyperSwarm/Topic analytical results would easily be licensed to marketing groups worldwide. Ratings will be used to determine which ringtones/songs users are most likely to purchase and marketing will focused on these sales opportunities.

Channels of highly-rated songs would be developed by METASwarm for shopping and public areas in China, which currently use CDs of, often, pirated music. Advertisements would be marketed for inclusion in the music channels and performance fees would potentially be paid as a percentage of revenue to the rights holders. Validated messaging system would be used to manage delivery of channels. METASwarm expects to build more than 20,000 audio networks/sites in over 100 cities in China within three years and reach 200 millions audiences a day.

The Mobile Music Market in China

Over 80% of mobile users in China have downloaded more than one song to be used as their ring tone. According to CCID Consulting, the total sales volume of mobile handsets with polyphonic ringtones in the PRC increased to 67.47 million units in 2004, representing 85.70% of the market share. In 2004, the mobile handset market in the PRC was dominated by mobile handsets with 40 polyphonic ringtones and 16 polyphonic ringtones, which together accounted for over 50% of the market share. The market share of mobile handsets with 40 polyphonic ringtones has increased rapidly from 10.10% in 2003 to 28.20% in 2004.

The MII estimates that the color ring back tone market will exceed the mobile phone ring tone market with a market scale of over $600 million within the next five years. Due to high market demand, the MII expects that the mobile phone music market will show high growth and potentially reach over $1 billion in annual sales.

About METASwarm, Inc.

METASwarm, Inc. is headquartered in California and is focused in the information technology industry. METASwarm specializes in personal and commercial information assurance solutions, including anti-fraud, anti-spam, and relationship analysis solutions for the Internet e-commerce markets. Specifically, METASwarm products provide applications for message management, message and website validation, and message and website analysis for email, cell phone text messaging (SMS), instant messaging (IM), and web pages.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation

Source: METASwarm, Inc.