Changes Coming to the iTunes Store

* All Songs DRM-Free
* Users Can Download Songs Directly Onto iPhone 3G Over Their 3G Network
for the Same Price
* In April 2009, Songs on iTunes Will be Available at Three Price Points

SAN FRANCISCO—January 6, 2009—Apple® today announced several changes to the iTunes® Store (www.itunes.com). Beginning today, all four major music labels—Universal Music Group, Sony BMG, Warner Music Group and EMI, along with thousands of independent labels, are now offering their music in iTunes Plus, Apple’s DRM-free format with higher-quality 256 kbps AAC encoding for audio quality virtually indistinguishable from the original recordings. iTunes customers can also choose to download their favorite songs from the world’s largest music catalog directly onto their iPhone™ 3G over their 3G network just as they do with Wi-Fi today, for the same price as downloading to their computer. And beginning in April, based on what the music labels charge Apple, songs on iTunes will be available at one of three price points: 69 cents, 99 cents and $1.29, with most albums still priced at $9.99.