Why don’t you bypass the record companies completely?
There is a new service called “Tune Core” where you can put your bands tunes on iTunes and several other music download websites for an extremely modest fee. I plan on doing this myself when I get some material properly recorded and COPYRIGHTED (don’t forget to do this for each individual song!). I recently learned about this, and I think its a GREAT idea – why not have the band keep the money? I’m surprised they don’t know about this already.
Also, you should post a link to the band in your question so other people can check ’em out – like me! I’m a blues-rock guitarist, so I like to check out other bands.