MUZAK FILES PLAN OF REORGANIZATION AND DISCLOSURE STATEMENT

Plan Supported by Muzak’s Largest Secured and Unsecured Creditor, the Creditors’ Committee and an Ad Hoc Committee of Senior Noteholders

FORT MILL, SC — Muzak Holdings LLC and certain of its subsidiaries (together, the "Company") today announced that the Company has filed a Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure Statement") with the United States Bankruptcy Court for the District of Delaware (the "Court"). The Plan is supported by Muzak’s largest secured and unsecured creditor, Silver Point Capital Advisors L.P. ("Silver Point"), the official committee of unsecured creditors and an ad hoc committee of the Company’s senior unsecured noteholders. As a result, the Plan is supported by an overwhelming majority of the Company’s unsecured creditors. A hearing to consider approval of the Disclosure Statement is presently scheduled for October 27, 2009.

Under the terms of the Plan, the Company’s outstanding debt would be reduced by more than half to $230 million and the Company’s annual interest expense would be significantly reduced. "The filing of our Plan represents a significant milestone and an important next step in our effort to restructure Muzak’s balance sheet," said Stephen P. Villa, Chief Executive Officer of Muzak. "We look forward to reaching an agreement with all of Muzak’s creditors and concluding this process as expeditiously as possible. Although there is still much work to be done, we have worked diligently over the last several months to address our capital structure and we are confident that, upon confirmation of our Plan and emergence from Chapter 11, Muzak will be well-positioned for long-term success." Mr. Villa added, "I want to thank our team members for their commitment to strengthening our business during this process, as well as our loyal clients, affiliates, supportive vendors and other stakeholders, all of whom played a significant role in helping us reach this important milestone."

Additional terms of the Plan include: - the holders of secured bank debt claims will either receive payment in full in cash with the proceeds of an exit facility, subject to availability, or their pro rata share of a new term loan; provided that, in the absence of exit financing, and to the extent secured bank debt holders vote to accept the Plan, holder s of secured bank debt claims other than Silver Point will receive their pro rata share of $20 million in cash as well as new term loans;

- the holders of the $220 million 10% senior unsecured notes will receive new senior unsecured notes at $135 million face amount with 8% cash and 7% PIK coupon, as well as $85 million of payment -in-kind preferred stock;

- the holders of the $115 million 9.875% senior subordinated unsecured notes will receive 100% of the new common stock of Reorganized Muzak (subject to dilution for a management incentive plan and the warrants issued to holders of discount note claims); the holders of the $24 million 13% senior discount unsecured notes will receive warrants for 7.5% of the fully-diluted new common stock at market value based on an enterprise value to be determined with a term of 5 years; and 100% cash recovery for holders of allowed general unsecured claims.

The Disclosure Statement includes a historical profile of the Company, a description of proposed distributions to creditors, and an analysis of the Plan’s feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.

The Plan is subject to confirmation by the Court. This release is not intended as a solicitation for a vote on the Plan. Kirkland & Ellis LLP is serving as legal advisor and Moelis & Company is serving as financial advisor to the Company.

Additional information about Muzak’s restructuring is available at the Company’s website, www.muzak.com/restructuring. For access to court documents and other general information about the Chapter 11 cases, is available at http://chapter11.epiqsystems.com/muzak.

About Muzak
Muzak creates sensory experiences that reach more than 100 million people daily. Some of the largest brands in business trust Muzak to enhance their brand image. Muzak creates an endless variety of music programming from a catalog of over 2.6 million songs and produces targeted custom in-store and on-hold messaging. Through its national service and support network, Muzak designs and installs professional sound systems, digital signage, drive- thru systems, commercial television and more. For more information, visit www.muzak.com.

Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as "expects", "should", "may", "believes", "anticipates", "will", and other future tense and forward-looking terminology. There can be no assurance as to the actual results of the undertakings described herein. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties including those contained in the risk factor and safe harbor disclosures found in our most recent financial reports and releases available at http://info.muzak.com/investor/. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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