Apple (AAPL)

iTunes® Store

The Company’s iTunes Store, available for both Macintosh and Windows-based computers, is a service that allows customers to find, purchase, and download third-party digital music, audio books, music videos, short films, television shows and movies, and iPod games. The iTunes Store also features the Podcast Directory that allows customers to search for and download audio programs to their computers and automatically receive new episodes over the Internet. Customers 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

11

artist. Originally introduced in the U.S. in April 2003, the iTunes Store now serves customers in 22 countries.

The iTunes Store is fully integrated with iTunes software allowing customers to preview, purchase, download, organize, share, and transfer digital content to an iPod using a single software application. Further discussion of the iTunes software may be found below under the heading “Software Products and Computer Technologies.” The iTunes 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 Store include gift certificates that can be sent via e-mail; prepaid music cards; an “allowance” feature that enables users to automatically deposit funds into an iTunes Store account every month; online gift options that let customers give specific content to anyone with an email address; parental controls; and album reviews.

iTunes® Store

The Company’s iTunes Store, available for both
Macintosh and Windows-based computers, is a service that allows customers to
find, purchase, and download third-party digital music, audio books, music
videos, short films, television shows and movies, and iPod games. The iTunes
Store also features the Podcast Directory that allows customers to search for
and download audio programs to their computers and automatically receive new
episodes over the Internet. Customers 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

11

artist. Originally introduced in the U.S. in April 2003,
the iTunes Store now serves customers in 22 countries.

The iTunes Store is fully
integrated with iTunes software allowing customers to preview, purchase,
download, organize, share, and transfer digital content to an iPod using a
single software application. Further discussion of the iTunes software may be
found below under the heading “Software Products and Computer Technologies.”
The iTunes 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 Store include gift certificates that can be
sent via e-mail; prepaid music cards; an “allowance” feature that enables users
to automatically deposit funds into an iTunes Store account every month; online
gift options that let customers give specific content to anyone with an email
address; parental controls; and album reviews.