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HighBank serves as exclusive financial advisor to Earbits on its sale to You42

October 23, 2015

HighBank Advisors (“HighBank”), a Baltimore, Maryland based mid-market investment bank, announces that it advised Earbits, Inc. (“Earbits” or the “Company”) on its sale to You42, Inc (“You42”). The transaction was announced in September 2015.

Earbits is a streaming music service where artists and labels bid on a per-stream basis for radio airtime, providing listeners with commercial-free radio and no subscription fees. The Company, backed by top investors Y Combinator, Charles River Ventures, Wordpress founder Matt Mullenweg and others, grew to over 300,000 registered listeners and 13,000 artists across 600 record labels. After a brief shutdown, You42 has re-launched Earbits with additional personnel, new offices in Santa Monica, and a renewed commitment to breaking new artists and giving consumers a high quality music discovery experience on multiple platforms.

“HighBank’s expertise and hands-on approach in guiding us through the sale process was instrumental to Earbits finding the right strategic partner. We always felt well-informed throughout the process and are incredibly happy to be a part of You42,” said CEO Joey Flores.

Cherie Homa, Managing Director at HighBank, stated “We enjoyed working with the Earbits team to evaluate alternatives and find the right long-term strategic parent. As part of You42, the founders will be able to continue with and build on Earbits’ vision.”

About Earbits, Inc.

Earbits was designed to make it easier for artists and music lovers to find each other and make meaningful connections. Using sponsored song insertion, Earbits monetizes better than other platforms with no ads, commercials or monthly fees. For more information visit www.earbits.com.

About You42, Inc.

You42 is an Atlanta-based entertainment company operating in the video game, music, sports, and digital video markets. You42’s vision is to re-inspire the human spirit by empowering creativity. You42’s mission is to revolutionize the global creative economy through the launch of the world’s first true social entertainment network.

About HighBank Advisors LLC

HighBank is a full service mid-market investment bank and financial advisory firm. Headquartered in Baltimore, Maryland with regional offices in Philadelphia, Pennsylvania and Raleigh, North Carolina, the firm provides advice on mergers and acquisitions, raising capital, exit and transaction planning, business valuations, fairness and solvency opinions, loan workouts and debt restructurings, and distressed asset sales. HighBank was formed on a mission that our clients and our people deserve to have their highest expectations met and to receive higher value for their investments of money and time. For more information visit www.highbank.com.

All investment banking services are provided by HighBank Securities LLC (“HBS”), a registered broker-dealer and member of FINRA www.finra.org and SIPC www.sipc.org. HBS is a wholly-owned subsidiary of HighBank Advisors.