The Singing Machine Announces Disney Distribution and Launch of On-Line Stores

COCONUT CREEK, Fla., July 2 /PRNewswire-FirstCall/ -- The Singing Machine Company ("Singing Machine" or the "Company")(NYSE Amex: SMD) proudly announces the launch of several new on-line sales initiatives. Three on-line revenue-producing sites have been launched which enable consumers to buy a variety of products directly from the Company. The Singing Machine on-line store now offers consumers karaoke hardware, music, and accessories; legally downloadable karaoke music; and an interactive karaoke social networking community where personal performances can be uploaded to the World Wide Web.

Consumers can go to the Company's website at www.singingmachine.com and find an array of quality, home karaoke systems ranging in price from $69.99 to $249.99. To celebrate the launch of the on-line store, the Company is offering free shipping with each purchase for the summer.

In addition, the Company debuts its industry leading music download store at http://shop.singingmachine.com/. The store houses an inventory of approximately 9,000 songs, providing a diverse mix of popular and hard-to-find selections across multiple genres from Country and hip-hop to Michael Jackson and the Jackson 5. Karaoke music can be downloaded for $0.99 to $1.49 each, and then burned to a CD+G with the SMC Karaoke Manager software provided for free at the Company website. The SMC Karaoke Manager allows customers to manage and play downloaded songs on their own computer or create customized karaoke playlists to play on any iPod or CD+G home karaoke system.

The Company's interactive Karaoke Community unites Karaoke performers from across the globe in a social networking community through sites such as Facebook and MySpace. Community members will be able to sing, record and save performances, as well as leave feedback and rate other performances in the Community. The Karaoke Community is free to join and includes a free selection of 250 songs to choose from. Fee based subscription options are available to access 5,800+ songs (with new songs being routinely added). The Company has immediate plans to host upcoming singing competitions through the Karaoke Community.

In addition to the launch of its internet initiatives, the Company is pleased to announce a new distribution partnership for Disney consumer electronics products. The Company will start selling Disney branded products in this fiscal year and is currently offering a wide array of Disney items on the Company store featuring character based products such as Sleeping Beauty, Hannah Montana, Pirates of the Caribbean, and High School Musical.

"The Singing Machine has joined the digital age in a big way," commented Tony Handal, CEO. "We are excited to be the market leader in the Karaoke industry. No other company in the market is offering fully legal Karaoke music downloads with free software to enable playback on your home Karaoke system. And, being able to distribute Disney branded product provides the Company with the opportunity to broaden its product offerings with a quality brand identity."

Craig Edelman, Director of Marketing and Business Development added, "As everyone knows, the physical CD music distribution business has been supplanted by digital downloadable music. As a result, it has become increasingly hard for consumers to find traditional Karaoke CD+G music in stores. There is still a big market out there for Karaoke music, and our music download store presents the consumer with an affordable digital option that is compatible with all our past and current machines." Edelman continued, "Historically, the Singing Machine has been a pioneer in the Karaoke industry and we are thrilled to again be paving the way into the future."

www.singingmachine.com