Unassociated Document FOR IMMEDIATE RELEASE CONTACT

ATRINSIC BUSINESS UPDATE AND

FINANCIAL RESULTS FOR THE THIRD QUARTER 2010

New York(November 15, 2010) -

Atrinsic, Inc., (NASDAQ: ATRN), a marketer of direct-to-consumer subscription

products and an Internet search marketing agency, announced third quarter

(unaudited) 2010 results today and also provided a business update.

for the third quarter of 2010 were $9.2 million compared with $14.9 million for

the third quarter of 2009, a decrease of 38%. Subscription revenue decreased to

$4.3 million for the three months ended September 30, 2010, compared to $4.9

million for the three months ended September 30, 2009, a decrease of 13%. This

decrease in Subscription revenue was due to a lower number of subscribers in the

third quarter, compared to the year-ago period. Transactional and

Marketing Services revenue decreased to $4.9 million for the three months ended

September 30, 2010 compared to $10.0 million for the three months ended

September 30, 2009, a decrease of 51%. The decrease in Transactional and

Marketing Services revenue was attributable to the loss of accounts and a

reduction in discretionary advertising expenditures by our clients, as well as a

result of a restructuring of our Transactional and Marketing Services

expenses for the third quarter of 2010 were $12.8 million compared with $19.9

million for the third quarter of 2009, a decrease of 36%. The decrease in

operating expenses was due to the decline in Transactional and Marketing

Services revenue which resulted in a corresponding reduction in purchased media

compared to the year-ago period, and significantly lower subscriber acquisition

rates, which resulted in a lower number of subscribers acquired and lower cost

of media compared to the year ago period. The Company lowered its

subscriber acquisition rate in the third quarter in anticipation of enhancements

to the Kazaa digital music service. The decrease in operating expenses for the

third quarter was also the result of lower selling and marketing and general and

administrative expense compared to the year ago period, reflecting efforts the

Company is making to align its cost structure with its revenue base. The product

and distribution component of operating expense increased, compared to the

year-ago period, which was due to Kazaa development costs and greater royalty

and license expense payable to the rights' holders owners, also associated with

Kazaa. The Company anticipates realizing improvement in its fixed

cost operating run rate by 30% to 50% over the next two quarters as a result of

aggressive restructuring efforts. See Restructuring Plan below, for further

details on the progress the Company is making to further reduce its operating

EBITDA for the third quarter of 2010 was a loss of ($3.1) million compared with

a loss of ($4.3) million for the third quarter of 2009, a 28% improvement. This

improvement in Adjusted EBITDA loss compared to the year-ago period was due to

the ability of the Company to reduce operating expenses more in line with the

drop in revenue during the third quarter. Adjusted EBITDA is a

non-GAAP measure - see Supplemental Disclosure regarding Non-GAAP Measures

attributable to Atrinsic for the third quarter of 2010 was ($3.6) million

(($0.17) loss per basic and diluted share) compared with net loss of ($2.4)

million for the third quarter of 2009 (($0.12) loss per basic and diluted

September 30, 2010, the Company had $4.2 million of cash and cash equivalents

and $6.0 million of working capital. Subsequent to quarter end, the Company

received $2.7 million of cash refunds from the IRS relating to its $3.5 million

in taxes receivable on the Company's balance sheet as of September 30, 2010.

digital music service is the Company's principal premium direct-to-consumer

subscription product. Although we have a broad offering of direct-to-consumer

subscription products, Kazaa is central to the Company's strategy to become a

leading direct-to-consumer business and as a result is an important focus for

management. We ended the third quarter of 2010 with

approximately 217,000 total subscribers across all of the Company's

consumer subscription services. The Company had approximately 64,000

Kazaa subscribers at the end of the third quarter 2010. Across the

Company's product portfolio, average revenue per user ("ARPU") for the third

quarter of 2010 was approximately $5.74, an increase of 31% compared to the year

ago period. This positive ARPU effect was due to the higher retail

price point of the Kazaa digital music subscription service and improvements in

billing efficiency. The Company added approximately 52,000 new

subscribers during the quarter, over half of which were Kazaa

subscribers. This level of customer acquisition was not sufficient to

maintain the Company's existing subscriber base during the

quarter. The Company consciously moderated and limited the rate of

subscriber acquisitions in response to changes in its alternative billing

processes and in anticipation and implementation of improvements and

enhancements to the current Kazaa digital music service.

and Marketing Services (Atrinsic Interactive)

The bulk of the Company's Transactional

and Marketing Services activity is comprised of activities related to Atrinsic

Interactive, the Company's Internet search marketing agency. Atrinsic

Interactive develops and manages search engine marketing campaigns for

advertising clients. During the third quarter of 2010, the Company

substantially completed its actions to eliminate any unprofitable or marginally

profitable lead generation campaigns and marketing programs from its

Transactional and Marketing Services offerings. As a result of this

restructuring,the bulk of our Transactional and Marketing Services revenue now

consists of revenue generated from Atrinsic Interactive, together with higher

yielding marketing campaigns.

connection with its announcement on October 14, 2010 to purchase the assets of

the Kazaa digital music service from Brilliant Digital, Inc. ("Brilliant

Digital"), the Company is undertaking a restructuring of its existing

operations, and of the Kazaa business that Brilliant Digital is engaged in, to

rapidly reduce certain expenditures and to improve product development, sales

and customer acquisition outcomes for the Kazaa digital music service, and for

the Company in general.

restructuring involves the consolidation of all of the Company's activities in

New York and includes the closure of the Company's Canadian technology facility,

the reduction of approximately 40 employees and the intended disposition or

reallocation of fixed assets at that location. In addition, all of Brilliant

Digital's Kazaa development, backend and marketing operations, currently located

in Sydney, Australia and Los Angeles, California will transition primary

functions and activities to personnel in New York. Approximately 30 employees or

contractors will be affected by this reduction and transfer of activities. It is

expected that the bulk of the consolidation of operations to the Company's

headquarters in New York will be completed by the end of the fourth quarter,