Unassociated Document FOR IMMEDIATE RELEASE CONTACT

OPERATING RESULTS FOR THE SECOND QUARTER 2010, AND RESIGNATION OF ITS CHIEF

New York (August 16, 2010) - Atrinsic,

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

second quarter (unaudited) 2010 results today.

for the second quarter of 2010 were $10.8 million compared with $17.0 million in

the second quarter of 2009, a decrease of 36%. Subscription revenue increased to

$5.0 million for the three months ended June 30, 2010, compared to $4.8 million

for the three months ended June 30, 2009. Transactional & Marketing services

revenue decreased by approximately $6.4 million or 52% to $5.8 million for the

three months ended June 30, 2010 compared to $12.2 million for the three months

ended June 30, 2009. The decrease was primarily attributable to the reduction in

discretionary advertising expenditures by our clients in the agency service

portion of our business.

expenses for the second quarter of 2010 were $15.3 million compared with

operating expenses of $19.9 million in the second quarter of 2009, a decrease of

approximately $4.6 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. During the quarter the Company announced

and commenced a 30% reduction in its work force, to realign, focus on and serve

its direct-to-consumer entertainment and digital subscription products,

including the Kazaa Music Service. The staff reductions did not affect the

agency portion of the business, which likewise the Company plans to continue to

focus on, invest in and grow.

EBITDA for the second quarter of 2010 was a loss of ($3.9) million compared with

($1.4) million in the second quarter of 2009. The increase in EBITDA loss is

primarily attributable to the decrease in revenue, partially offset by decreases

in operating expenses. Adjusted EBITDA is a non-GAAP measure - see Supplemental

Disclosure regarding Non-GAAP Measures below.

attributable to Atrinsic for the second quarter of 2010 was ($4.5) million

(($0.22) loss per basic and diluted share) compared with net loss of ($1.9)

million for the second quarter of 2009 (($0.10) loss per basic and diluted

June 30, 2010, the Company had $7.3 million of cash and cash equivalents.

the second quarter of 2010 with approximately 284,000 subscribers, a

year-over-year decrease of 114,000 net subscribers from the end of the

second 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 118,000 net losses), offset by an increase in

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

2010, we added 113,000 subscribers. Average revenue per user (or

ARPU) increased approximately 49% year-over-year as a result of adding

subscribers in higher ARPU subscription services.

Atrinsic, Inc. also announced that on August 13, 2010, Jeffrey Schwartz resigned

from his position as Chief Executive Officer of Atrinsic and also resigned from

Atrinsic's Board of Directors. On an interim basis, Andrew Stollman, our

President, and Raymond Musci, our Executive Vice President of Corporate

Development, will assume the responsibilities formerly associated with Mr.

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.

Atrinsic, Inc. is an Internet focused marketing company. We sell

entertainment and lifestyle subscription products directly to consumers which we

market through the internet. We also sell internet 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 for our products and for our corporate partners and

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 August 16, 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

three month periods ending on June 30, 2010 and 2009, respectively. The Company

defines "EBITDA" and "Adjusted EBITDA" as net income adjusted to exclude the

following line items presented in its Statement of Operations: Equity in loss of

investee, noncontrolling interest, income taxes, other expense (income),

interest expense, interest and dividend income, net, depreciation and

amortization, and in the case of Adjusted EBITDA non-cash equity based

compensation. While this non-Generally Accepted Accounting Principles ("GAAP")

measure has been relabeled to more accurately describe in the title the method

of calculation of the measure, the actual method of calculating the measure is

Company uses Adjusted EBITDA, among other things, and possibly with additional

adjustments, to evaluate the Company's operating performance, to value

prospective acquisitions, and as one of several components of incentive

compensation targets for certain management personnel, and this measure is among

the primary measures used by management for planning and forecasting of future

periods. This measure is an important indicator of the Company's operational

strength and performance of its business because it provides one of several

links between profitability and operating cash flow. The Company believes the

presentation of this measure is relevant and useful for investors because it

allows investors to view performance in a manner similar to the method used by

the Company's management, helps improve their ability to understand the

Company's operating performance and makes it easier to compare the Company's

results with other companies that have different financing and capital

structures or tax rates. In addition, it is our understanding that this measure