Apple (AAPL)

iTunes Music Store®

The Company’s iTunes Music Store, available for both Windows-based and Macintosh computers, is a service that allows customers to find, purchase, and download third-party digital music, audio books, music videos, short films, and television shows. The iTunes Music Store also offers Podcast Directory that allows users to search for and download audio programs to their computer and automatically receive new episodes over the Internet. Users can search the contents of the store catalog to locate works by title, artist, or album, or browse the entire contents of the store by genre and artist. Users can also listen to a free 30-second preview of content available through the store. The iTunes Music Store was originally introduced in the U.S. in April 2003 and now serves customers in 21 countries.

The iTunes Music Store is fully integrated directly into the iTunes software allowing customers to preview, purchase, download, organize, share, and transfer digital content to an iPod using a single software application. Further discussion on the iTunes software may be found below under the heading “Software Products and Computer Technologies.” The iTunes Music Store offers customers a broad range of personal rights to the third-party content they have purchased. Content purchased through the store may also be used in certain applications such as iPhoto®, iMovie®, and iDVD®. Additional features of the iTunes Music Store include gift certificates that can be sent via e-mail; prepaid gift cards; an “allowance” feature that enables users to automatically deposit funds into an iTunes Music Store account every month; online gift options that let customers give specific songs, albums, music videos, or their own playlists to anyone with an email address; parental controls; and album reviews.

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iTunes Music Store®

The Company’s iTunes Music Store, available for both Windows-based
and Macintosh computers, is a service that allows customers to find, purchase,
and download third-party digital music, audio books, music videos, short films,
and television shows. The iTunes Music Store also offers Podcast Directory that
allows users to search for and download audio programs to their computer and
automatically receive new episodes over the Internet. Users can search the
contents of the store catalog to locate works by title, artist, or album, or
browse the entire contents of the store by genre and artist. Users can also
listen to a free 30-second preview of content available through the
store. The iTunes Music Store was originally introduced in the U.S. in April 2003
and now serves customers in 21 countries.

The iTunes Music Store is
fully integrated directly into the iTunes software allowing customers to
preview, purchase, download, organize, share, and transfer digital content to
an iPod using a single software application. Further discussion on the iTunes
software may be found below under the heading “Software Products and Computer
Technologies.” The iTunes Music Store offers customers a broad range of
personal rights to the third-party content they have purchased. Content
purchased through the store may also be used in certain applications such as
iPhoto®, iMovie®, and iDVD®. Additional features of the iTunes Music Store
include gift certificates that can be sent via e-mail; prepaid gift cards; an “allowance”
feature that enables users to automatically deposit funds into an iTunes Music
Store account every month; online gift options that let customers give specific
songs, albums, music videos, or their own playlists to anyone with an email
address; parental controls; and album reviews.

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The Company introduced the iTunes Music Store in Canada in December 2004, and in Ireland in January 2005.  The iTunes Music Store now serves customers in a total of 19 countries in North America and Europe.

The Company introduced the iTunes Music Store in Canada in December 2004, and in Ireland in January 2005.  The iTunes Music Store now serves customers in a total of 15 countries in North America and Europe.

In December 2004, the Company introduced the iTunes Music Store in Canada, followed by the availability of iTunes Music Store service in Ireland in January of 2005.  The iTunes Music Store now serves customers in a total of 15 countries in North America and Western Europe.

iTunes Music Store™

In April 2003, the Company launched the iTunes Music Store in the United States, an online music store that allows Macintosh customers to find, purchase, and download music for 99 cents per song or, in most cases, $9.99 per album. The iTunes Music Store is fully integrated with a one-click download directly into the latest version of the iTunes software, allowing customers to purchase, download, organize, share, and transfer their digital music to an iPod using a single software application. Requiring no subscription fee, the iTunes Music Store with iTunes software offers customers a broad range of personal rights to the songs purchased, including playing songs on up to three computers, burning songs onto an unlimited number of CDs for personal use, playing songs on an unlimited number of iPods, and using songs in certain applications such as iPhoto, iMovie, and iDVD. Users can easily search the contents of the entire music

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store to locate songs by title, artist, or album, or browse the entire contents of the music store by genre and artist. Users can also listen to a free 30-second preview of any song in the store.

The second generation of the iTunes Music Store for both Macintosh and Windows users became available in October 2003. New features of the music store include online gift certificates that can be sent to family and friends via e-mail, an "allowance" feature that enables users to automatically deposit funds into an iTunes Music Store account every month, and the availability of audio books for purchase directly from the iTunes Music Store. The Company is exploring ways to enhance awareness and promote use of the iTunes Music Store, including arrangements with America Online, Inc. (AOL) to integrate links to the iTunes Music Store into AOL's Music site and Pepsi-Cola North America to give away songs from the iTunes Music Store.

iTunes Music Store™

In April 2003, the Company launched the iTunes Music Store in the United States, an online music store that allows Macintosh customers to find, purchase, and download
music for 99 cents per song or, in most cases, $9.99 per album. The iTunes Music Store is fully integrated with a one-click download directly into the latest version of the iTunes
software, allowing customers to purchase, download, organize, share, and transfer their digital music to an iPod using a single software application. Requiring no subscription fee, the iTunes Music
Store with iTunes software offers customers a broad range of personal rights to the songs purchased, including playing songs on up to three computers, burning songs onto an unlimited number of CDs for
personal use, playing songs on an unlimited number of iPods, and using songs in certain applications such as iPhoto, iMovie, and iDVD. Users can easily search the contents of the entire music

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store
to locate songs by title, artist, or album, or browse the entire contents of the music store by genre and artist. Users can also listen to a free 30-second preview of any song in the
store.

The
second generation of the iTunes Music Store for both Macintosh and Windows users became available in October 2003. New features of the music store include online gift certificates that can
be sent to family and friends via e-mail, an "allowance" feature that enables users to automatically deposit funds into an iTunes Music Store account every month, and the availability of
audio books for purchase directly from the iTunes Music Store. The Company is exploring ways to enhance awareness and promote use of the iTunes Music Store, including arrangements with America
Online, Inc. (AOL) to integrate links to the iTunes Music Store into AOL's Music site and Pepsi-Cola North America to give away songs from the iTunes Music Store.