Market Update

TORONTO, ONTARIO–(EMWNews – Aug. 18, 2008) –

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Fluid Music Canada, Inc. (“Fluid”) (TSX:FMN) today announced that litigation has been commenced against it by PFH Investments Limited (“PFH”) in relation to a debenture previously issued to PFH and repurchased by Fluid. The claim seeks, among other things, to effectively reinstate the debenture which was repurchased in June 2008 from the net proceeds of Fluid’s recent initial public offering, as well as damages. Fluid is in the process of consulting legal counsel and intends to vigorously defend the claim which it believes to be without merit.

Forward-Looking Statements

Certain statements in this news release contain “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Fluid to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When appearing in this news release, these statements use such words as “may,” “will,” “intend,” “should,” “expect,” “believe,” “plan,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” the negative of these terms or other similar terminology. While Fluid currently believes that there is no merit to the litigation disclosed in this release, there can be no assurance as to the outcome of such litigation.

These statements, including statements relating to the litigation, reflect current expectations regarding future events and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements contained in this news release are made as of the release date of this document, and, except as otherwise required by law, Fluid assumes no obligation to update or revise such statements to reflect new events or circumstances.

About Fluid Music Canada, Inc.

Fluid Music Canada, Inc. (TSX:FMN) is a leading private label music aggregation and distribution company, providing music solutions to both business and individual customers. The company has compiled a music library of over five million songs, free of digital rights management restrictions, from a diverse network of producers including major label, independent and emerging artists. Additional information relating to Fluid Music Canada, Inc. is available at www.fluidmusic.com and www.sedar.com.