Franklin, TN., -- PassAlong Networks™, Nettwerk Music and Digonex®   Technologies today announced the launch of a joint variable-priced MP3 pilot, the music industry’s first offering of fully variably-priced downloadable music. Using patented Digonex pricing technology, PassAlong is able to adjust retail pricing on a weekly basis for Nettwerk Music’s MP3 catalog.

Album prices are adjusted up or down according to the consumer demand-driven Digonex pricing engine, which systematically changes pricing based on Internet economics and consumer behavioral principles. Most album prices fluctuate between $3.30 and $9.99. Singles are dynamically-priced at one of three possible price tiers: $.33, $.66 or $.99.

“We are thrilled to partner with Nettwerk and Digonex to launch this pricing pilot, a true industry-first for music downloads,” said Dave Jaworski, co-founder and CEO of PassAlong Networks. “We are extremely optimistic about this test and we think that it will show how dynamic pricing can benefit the marketplace.”

Consumer demand helps determine the pricing for approximately 150 fully variably-priced albums and the appropriate price tier for more than 1,500 singles. Prices will be updated at noon CDT every Wednesday throughout the test. The variably-priced albums and tier-priced singles are offered through PassAlong’s digital media services engine, StoreBlocks™, which currently powers more than 130 music download stores including JAZZIZ Magazine and TransWorld's f.y.e. ­ for your entertainment online music store.

“Nettwerk is extremely interested in how varying pricing in the marketplace affects consumption,” said Brent Muhle, who leads digital initiatives for Nettwerk. “Digonex and PassAlong have a created a mechanism that allows our artists to define the market with their fans rather than passively participating with retailers.”

Nettwerk Music’s MP3 catalog is made up of dozens of artists including Sarah McLachlan, Barenaked Ladies, Leigh Nash and The Weepies.

“Nettwerk and PassAlong are to be commended for their pioneering spirit in adapting Digonex's Dynamic Pricing system for this pilot,” said Jan Eglen, CEO of Digonex Technologies, Inc. “This launch represents the first deeply rooted technological and business effort to address the two major banes to the music marketplace - fair pricing and wide interoperability.”

The pricing pilot runs through late 2007. Throughout the pilot consumer responses and pricing results will be reviewed and adjustments made accordingly.



About Digonex Technologies, Inc.

Software developer Digonex Technologies focuses primarily on development of automated and optimized pricing platforms for e-commerce, allowing client companies to increase customer retention, and maximize revenue. Digonex has also developed Nabit® , an important worldwide eBay buyer application.