YAGA PAYS OUT FIRST $100,000 ROYALTY INSTALLMENT TO CONTENT PUBLISHERS

Foster City, Calif., November 12, 2001 --- Yaga, Inc. (www.yaga.com), provider of the first complete P2P digital goods distribution, transaction, and subscription network, today announced the payment of royalties from the $100,000 October pool to Yaga Network content owners. Yaga is offering $300,000 in guaranteed royalties ($100, 000 per month) to be divided among content owners who post their content on Yaga during October, November and December 2001. The monthly pool is divided according to the number of downloads by Yaga subscribers, guaranteeing all content owners a percentage of the royalty pool.

YAGA PAYS OUT FIRST $100,000 ROYALTY INSTALLMENT TO CONTENT PUBLISHERS

First monthly installment of 3-month, $300,000 pool paid to content producers and owners based on the popularity of their files

Foster City, Calif., November 12, 2001 --- Yaga, Inc. (www.yaga.com), provider of the first complete P2P digital goods distribution, transaction, and subscription network, today announced the payment of royalties from the $100,000 October pool to Yaga Network content owners. Yaga is offering $300,000 in guaranteed royalties ($100, 000 per month) to be divided among content owners who post their content on Yaga during October, November and December 2001. The monthly pool is divided according to the number of downloads by Yaga subscribers, guaranteeing all content owners a percentage of the royalty pool.

Yagas first monthly royalty pool drove over 200 content owners to post content on the Yaga Network and receive a percentage of the guaranteed $100,000. The wide array of content currently available through Yaga includes music from Community Musician (www.communitymusician.com), clipart from ArtToday, ebooks from ebooksnbytes.com, and movies from BijouxFlix (www.bijouflix.com), with more added on a daily basis.

We believe that content owners and producers should receive payment for and maintain distributive control over their work," said Chris Kitze, CEO and co-founder, Yaga Inc. Yaga is offering this guaranteed royalty pool to reinforce our commitment to that belief and to demonstrate how easy it is to make money by posting content on the Yaga Network."

By paying content owners, Yaga is radically changing the existing content distribution dynamic on the Web. Content owners usually have to pay to distribute their digital goods online with no guarantee of payment in return. Yaga provides not only an outlet for distributing content but also a guaranteed portion of a monthly royalty pool and additional cash incentives for referring other members to Yaga. By offering an initial $300,000 royalty pool, Yaga is providing content owners with an increased incentive to place their content on Yagas network and begin making money immediately.
In addition to providing the means to distribute and collect money for content, Yaga also provides content owners with the tools to promote and manage their content. Digital content, including videos, images, music, e-books, games and software can be uploaded to Yaga and will immediately begin earning money for the content owner. Content owners maintain complete control over their files, including the ability to update content and descriptions on the fly and easy access to the number of downloads.
Yaga provides an easy additional way to earn money from our catalog of films. The royalty pool is a great incentive to place content on the Yaga network," said James Rupp, Co-President, BijouFlix. We work very closely with dozens of independent filmmakers. Through Yaga, BijouFlix offers filmmakers additional exposure and, most importantly, another way to earn genuine cash for the works theyve entrusted us to distribute."
Yagas digital marketplace opens a new revenue channel that was previously non-existent for us, giving independent musicians a way to easily and effortlessly get paid for distributing their content without any additional production or capital costs," said Craig Hordlow, CEO, Community Musician.

About Yaga
Yaga provides a complete distribution and transaction infrastructure for the global digital goods marketplace. Yaga's comprehensive, transaction enabled P2P network integrates a massively scalable distribution architecture with digital rights management, micro-payment, royalty accounting and back-end payment capabilities -- allowing content owners to generate revenue from their digital assets. Yaga gives consumers the ability to find and access high quality digital content -- including audio, video, images, software, etc., from branded media companies and independent content producers. Plus faster, higher quality downloads and the option to be compensated for file sharing. Yaga was founded by digital media and Internet technology veterans Chris Kitze and Vijay Vaidyanathan in 2000. Investors include Altotech, Andojo, Draper Fisher Jurvetson, InfoSpace, and The Individuals Venture Fund. Yaga is headquartered in Foster City, California. Visit http://www.yaga.com for more information

###