KOCH SIGNS EXCLUSIVE DISTRIBUTION DEAL
WITH CHILDREN’S LABEL MR. RAY

(Port Washington, New York) March 19, 2007 - KOCH Entertainment Distribution is pleased to announce that it has signed an exclusive audio & video distribution deal with children’s label MR. RAY Family Entertainment. Under this agreement, KOCH will be the exclusive distributor for the label in North America.

MR. RAY Family Entertainment is a New Jersey-based company owned and operated by Ray Andersen, better known as MR. RAY. As MR. RAY, he has sold more than 60,000 CD's and MP3 downloads (without the prior help of national physical-product distribution), since putting out his first album, 'Start Dreaming!' in 2001. He has appeared on Nickelodeon, Good Morning America, the Wall St. Journal, and many other high profile media outlets.

The homespun company and label was originally launched in 2001 as Honeyhead Music Company. The name was recently changed to reflect the wider appeal of the MR. RAY brand of cool, hip, positive entertainment for the whole family. MR. RAY is known to thousands of families in the US and now, the UK, for his rocking, educational songs and stage show.

KOCH will begin distributing popular audio titles by the label that include START DREAMING!, SONGS FROM THE KIDS LOUNGE, and FAMILY RIDE, as well as best-selling DVD releases THE MR. RAY SHOW and SONGS FROM THE STICKERED GUITAR.

“We are absolutely thrilled to be a part of such a wonderful company like KOCH.
Their dedication and success in the Children’s/Family genre will be a perfect fit for
MR. RAY Family Entertainment!,” says Ray Andersen.

Michael Rosenberg, President of KOCH Entertainment Distribution adds, “We’re very pleased to welcome MR. RAY to our high-profile roster of children’s/family oriented entertainment. MR. RAY’S popular brand of children’s music & video products is the perfect compliment to our award-winning lines in this genre.”

KOCH Entertainment is the leading and fastest-growing independent music and video company in the U.S. and its operations encompass record and video labels as well as physical and digital distribution companies in the U.S. and Canada. KOCH Entertainment is the market leader among independents in both the U.S. and Canada and its record labels had the largest number of Billboard charting albums among independents in 2005/2006.

For more information, please contact James Scileppi at (516) 484-1000 Ext. 243 or email james.scileppi@kochent.com.