March 14, 2003

Dear DigiStudio User:

Today we have very sad news. After five years of trying to develop the market for our revolutionary collaboration and delivery products we are forced to call it quits. We will be shutting down our server on March 31, 2003. This will force Digidesign to terminate the DigiStudio Studio Center. Please accept this as formal notice of the termination of your User License Agreement.

Rocket Network has signed up over 65,000 users over the course of our history, a substantial market. The difficult economic climate and the slow adoption of the paid service have forced us to make this decision.

We believe we have ever so slightly changed the world for the better by demonstrating the advantages of digital delivery and online collaboration. Rocket Network was just too far ahead of the market to be a viable business. We believe it will be a couple of years yet until the market begins to embrace this technology. Given the current economic climate we are unable to attract continued investment to sustain us until the market develops. We still deeply believe in the dream of music and post production communities working on a project simultaneously from anywhere in the world.

We appreciate your business and support and want to treat each customer as fairly as possible. If you have time remaining on a prepaid account as of March 31, 2003, your credit card account will be credited for the unused balance. It will take approximately 30 days to process all credits.

Thank you so much for your business and for believing in the dream.

Best regards,
Pam Miller
President and CEO

Willy Henshall
Founder and Chairman

Q&A

Why is Rocket Network shutting down?
The current economic climate has made it difficult to sustain Rocket Delivery and Rocket Control Collaboration as viable businesses. Market adoption for online collaborative and delivery services has been slower than anticipated.

What will happen to my current files and projects that are in Rocket Network?
Your Rocket Collaboration projects and files will remain on Rocket Network through April 15, 2003. Once the service is discontinued on that date, your projects will be deleted and will not be retrievable. We therefore urge you to download all files to your desktop computer(s).

Will you be backing up anything that I posted on Rocket Network?
No. Rocket Network will not back up or archive your projects. We strongly urge that you download all files to your local desktop computer(s).

I've just paid my current month's subscription. Can I get a refund?
Yes. We will automatically refund users whose prepaid accounts have time remaining. If you have questions or do not receive a refund by April 30, 2003 please contact Support@RocketNetwork.com.

What happens to my project team members using Rocket Network in other Studio Centers? Are you informing them as well?
All registered users in all Studios Centers are being contacted by Rocket Network.