Unassociated Document FOR IMMEDIATE RELEASE CONTACT

OPERATING RESULTS FOR THE FIRST QUARTER 2010

KAZAA MUSIC SERVICE REACHES

New York (May 11, 2010) - Atrinsic,

Inc., (NASDAQ: ATRN), a leading Internet focused marketing company, announced

first quarter (unaudited) 2010 results today.

for the first quarter of 2010 were $12.2 million compared with $23.5 million for

the first quarter of 2009, a decrease of 48%. Subscription revenue

decreased by approximately $1.0 million, or 14%, to $6.0 million for the three

months ended March 31, 2010, compared to $7.0 million for the three months ended

March 31, 2009. Transactional & Marketing Services revenue decreased by

approximately $10.4 million or 62% to $6.2 million for the three months ended

March 31, 2010 compared to $16.6 million for the three months ended March 31,

2009. The decrease in Transactional & Marketing Services revenue

was primarily attributable to the reduction in discretionary advertising

expenditures by our clients in the agency service portion of our business and

the loss of certain accounts.

expenses for the first quarter of 2010 were $15.4 million compared with

operating expenses of $25.3 million in the first quarter of 2009, a decrease of

approximately $9.9 million. The decrease is primarily attributable to

a reduced amount of purchased third party media, correlated to decreased

revenues, and a reduction in labor and operating costs.

EBITDA for the first quarter of 2010 was a loss of ($2.6) million compared with

income of $0.1 million in the first quarter of 2009, a decrease of approximately

$2.7 million. The decrease is primarily attributable to the decrease in revenue,

partially offset by decreases in operating expenses, a portion of which Atrinsic

has invested in new product and services development for future

growth. Adjusted EBITDA is a non-GAAP measure - see Supplemental

Disclosure regarding Non-GAAP Measures below.

increased by ($2.2) million to ($3.4) million (($0.16) loss per basic and

diluted share) for the first quarter of 2010, compared to net loss of ($1.2)

million (($0.06) per basic and diluted share) for the first quarter of

March 31, 2010, the Company had $12.5 million of cash and cash equivalents with

adequate working capital to support growth, business development initiatives,

and capital activities for the next twelve months.

We ended the first quarter of 2010 with

approximately 330,000 subscribers, a year-over-year decrease of 160,000 net

subscribers from the end of the first quarter of

2009. The reduction in total subscribers on a

year-over-year basis was principally a result of a reduction in mobile content

subscribers (approximately 156,000 net losses), offset by an increase in

subscribers to the Kazaa music service. For the first quarter of

2010, we added 158,000 subscribers, the largest number of new additions since

the first quarter of 2009. Average revenue per user (or ARPU)

increased approximately 27% year-over-year as a result of adding subscribers in

higher ARPU subscription services. During the first quarter of

2010, total tracks downloaded on Kazaa increased 50% when compared to

the fourth quarter of 2009.

Schwartz, CEO of Atrinsic, noted "We are deeply focused on adding subscribers

across a range of digital entertainment and lifestyle subscription

products. In particular, we are having success adding subscribers to

the Kazaa music service. We ended the first quarter

with approximately 100,000 paying subscribers and a healthy trajectory

on adding new subscribers. Given the size of this market

(approximately $4 billion spent annually on digital music growing at 25%,

according to the International Federation of the Phonographic Industry), we feel

we are well positioned in a rapidly growing market. In Kazaa, we now

jointly operate a top music subscription service that is approaching

profitability and have a new product launch for Kazaa that is slated for early

summer. We believe Kazaa, and music subscriptions in general, is an

area of opportunity and value creation for Atrinsic."

non-GAAP amounts have been adjusted from comparable GAAP measures. A description

of all adjustments and reconciliations to comparable GAAP measures for all

periods presented are included within this communication.

noted, "The financial results we are reporting today show that we are in the

middle of a choppy transition to a business that is more tightly focused on

digital subscriptions. The area of the business that we believe has

the highest potential to create enterprise value is adding subscribers in

high-value categories with products and services that delight our customer

base. As we continue on this trajectory, our expectation is that the

financial benefits and leverage of our business model will manifest itself in

Inc. is a leading Internet focused marketing company. We combine the power of

the Internet with traditional direct response marketing techniques to sell

entertainment and lifestyle subscription products directly to consumers. We also

leverage our media network and marketing expertise to provide lead generation

and search related marketing services to our corporate and advertising clients.

We have developed our marketing media network, consisting of web sites,

proprietary content and licensed media, to attract consumers, corporate partners

and advertisers. We believe our marketing media network and proprietary

technology allows us to cost-effectively acquire consumers and provide targeted

leads and marketing data to our corporate partners and advertisers.

press release contains "forward-looking" statements based on management's

current expectations as of the date of this release. These statements are made

pursuant to the safe harbor provisions of the Private Securities Litigation

Reform Act of 1995. Forward looking statements include the

Company's discussion relating to management's current strategic priorities.

Because such statements inherently involve risks and uncertainties, actual

results may differ materially from those expressed or implied by such forward

looking statements. Such risks include, among others, the Company's ability to

maintain customer and strategic business relationships, the impact of

competitive products and pricing, growth in targeted markets, the adequacy of

the Company's liquidity and financial strength to support growth, and other

information that may be detailed from time to time in the Company's filings with

the United States Securities and Exchange Commission. All information

in this release is as of May 10, 2010. The Company does not undertake any

obligation to update or revise these forward-looking statements to conform to

actual results or changes in the Company's expectations.

Supplemental Disclosure

regarding Non-GAAP Measures

following tables set forth the Company's EBITDA and Adjusted EBITDA for the