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nextel real tones

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									    REALTONES ACCOUNT FOR MORE THAN 76 PERCENT OF MOBILE
        CONSUMER SPENDING ON MUSIC PERSONALIZATION,
                  ACCORDING TO TELEPHIA

  Revenue Share from Ringback Tones Has Increased Nearly 50 Percent since Q3 2005
              with Chamillionaire’s “Ridin'” as the No. 1 Ringback Title


SAN FRANCISCO—August 7, 2006—Realtones account for more than three-fourths of
consumer spending on music ringtones to personalize their phones, according to
Telephia, the leading provider of performance measurement information to the mobile
industry. Telephia’s latest quarterly Mobile Ringtone Report shows that mono and
polyphonic ringtones now account for only 12 percent of consumer spending on music
personalization products, down from nearly 30 percent in Q3 2005 (see Table 1).
Ringback tones, which were launched in late 2004, now account for 11.5 percent of
consumer spending in this category, an increase of almost 50 percent since last year.

According to Telephia, the number of mobile consumers purchasing a ringtone increased
to more than 24.6 million in Q2 2006. While the overall market is growing, mono and
polyphonic ringtones are losing market share to realtones and ringback tones.

“It’s no surprise that mono and polyphonic ringtones have fallen out of favor with mobile
consumers as realtones are a far superior format, much like how CDs replaced cassette
tapes. This is all part of the broader shift toward consumers expecting their mobile
devices to deliver a high-quality portable music experience,” said Kanishka Agarwal,
Vice President of New Products, Telephia.

Table 1: Revenue Share by Ringtone Type (U.S.)
                       Quarterly Revenue Share
 Ring Type       Q3 05       Q4 05      Q1 06      Q2 06    Percent Growth (Q3 05-Q2 06)
 Realtone         62.4%       68.3%      76.2%      76.4%                          22.4%
 Ringtone         29.6%       22.8%      13.8%      12.0%                         -59.4%
 Ringback          7.7%        8.9%      10.0%      11.5%                          49.5%
Source: Telephia Mobile Ringtone Report, Q3 05 – Q2 06
*Note: The Mobile Ringtone Report represents on-portal ringtone activity data from the top four carriers,
including Sprint Nextel, T-Mobile, Verizon and Cingular. Data excludes pre-paid and corporate liable
activity.

Popularity on the Rise for Ringback Tones
Ringback tones offer mobile consumers a way to personalize what their callers hear and
the service has grown in popularity over the past year. Chamillionaire’s Ridin’ was the
top revenue-generating ringback title during the second quarter, securing 3.1 percent of
the total ringback revenues (see Table 2). What You Know by T.I. came in second,
securing a 1.8 percent share. Hips Don’t Lie by Shakira & Wyclef Jean, Mary J. Blige’s
hit single Be Without You, and Me & You by Cassie rounded out the top five ringback
tones.

Table 2: Top Ringback Titles by Revenue Share (U.S.)
         Title                    Artist                 Genre           Revenue Share (%)
 1. Ridin'              Chamillionaire                Rap/Hip-Hop                     3.1%
 2. What You Know       T.I.                          Rap/Hip-Hop                     1.8%
 3. Hips Don't Lie      Shakira & Wyclef Jean         Pop                             1.5%
 4. Be Without You      Mary J. Blige                 Soul/R&B                        1.4%
 5. Me & U              Cassie                        Soul/R&B                        1.3%
Source: Telephia Mobile Ringtone Report, Q2 06

About Telephia
Founded in 1998, Telephia provides syndicated performance measurement information to
the leaders of the converging communications and mobile industries, including carriers,
device manufacturers, content and application providers, retailers, infrastructure vendors
and investment analysts. Telephia is the industry standard measure of subscriber share,
customer satisfaction, device share, network quality, revenue share, advertising
effectiveness, content audience and many other key performance indicators. For further
information, please visit our website at www.telephia.com or call 415-395-0500.

                                                   ###
Press Contact: Maria Bumatay
e: mbumatay@telephia.com
p: 415.637.4904

								
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