SWCast Network: Next Generation Online Music Radio

Joint Performance Licensing Program

Rebuilding the Network

May 3, 2011

Dear Valued Members:

I know that many Personal Broadcast Services members have held out for quite some time in anticipation of a resolution. I certainly do appreciate your patience and apologize for the delay. As I promised, I have every intent of bringing SWCast Network® back online. And the continued pursuit of a resolution with SoundExchange has likewise, not changed.

Although I am not yet entitled to disclose our specific discussions with SoundExchange, per the advice of my counsel, I do want to provide our clients with insight into my plans for the company and important instructions as we move forward on what will prospectively be a relaunching and rebranding of our service as a whole.

The publicity that we've garnered, from the recent media coverage, has opened up some new opportunities for SWCast Network as a company, including several investment prospects on the horizon, which I thoroughly intend to explore. Affordable Webcasting solutions will always remain a principal focus. However, I believe that reconceptualizing our service offerings, is a much needed step forward as well. Leveraging the existing licensing platform that I've developed these past eight years, while adapting to the changing marketplace for Internet radio, including emerging streaming media technologies, is the direction that I want to take SWCast Network in the coming years.

That is invariably the good news — in a nutshell. Now onto how I endeavor to realize this:

Given the sensitive nature of our ongoing discussions with SoundExchange partnered with the pursuit of these new business ventures, comes of course the reality for our many devoted clients: Until an official launch of our new service, we are not able to accomodate any customers at this time. This is assuredly temporary, but nonetheless an imperative business measure. Compliancy is understandably my number one concern going forward.

After exploring many alternative solutions, I am confident that this remains the only viable option to ensure that we can both rectify any outstanding issues with SoundExchange and likewise return to business — all within a reasonable timeframe.

Once again, this was purely an executive decision. Due to the encroaching deadline and my concern for the liability of our customers, it had to be made. I apologize for any inconvenience this may cause. In the interim, Personal Broadcast Services Members will likely have to seek alternative licensing or remain off the air from this date forward.

I cannot advise any specific arrangement, but I do caution streaming without a license, as you may incur significant penalties for copyright infringement. Below are several sites that can provide you with information on Webcaster licensing until our prospective relaunch:

I personally believe that it will be in the best interests of SWCast Network, including our many faithful listeners and broadcasters, to pursue the most promising avenues for the company and to respect our obligations to sound recording copyright owners and recording artists.

I am very excited about the future of SWCast Network. And I look forward to the opportunity to serve all of you again very soon.

Respectfully Yours,

Randall Krause
President & Founder
SWCast Network, Inc.

Legal and Contractual Disclaimer.
The information hereinbefore is not intended to constitute legal advice or consultation nor does it form a legally binding contract.

Forward-Looking Statements Disclaimer.
The information hereinbefore may contain certain forward-looking statements. Such statements constitute reasonably projected outcomes based upon known risks that may be influenced by unanticipated factors or conditions, and thus are not a guarantee.

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"SWCast Network" is a registered trademark of SWCast Network, Inc.