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STRATEGIC MARKETING AND COMMERCIAL AFFAIRS DIVISION ANNOUNCED

LONDON, 15 OCTOBER 2002 -- A new division of Universal Music International - Strategic Marketing and Commercial Affairs - has been created by Senior Vice President, Bert Cloeckaert. This absorbs the functions of UMI's former strategic marketing division, UM³, bringing it together with the Commercial Affairs function under one unit.

The new department works to maximize the profile and value of Universal Music’s catalogue in international markets. It acts as a service center adding value through marketing initiatives and co-ordination of commercial issues to local and international markets.

Marketing support is given via three key areas of operation; Catalogue marketing headed by VP Julian Huntly, which works with pop repertoire for sales through traditional retail channels; TV Marketing headed by VP Stan Roche, which includes single artist albums and compilations promoted by TV advertising; and Commercial and Consumer Marketing (CCM) headed by VP Kajsa Blomberg, which includes all forms of direct-to-consumer sales and distribution through non-traditional channels. All three report to Cloeckaert.

The commercial affairs support is provided by Ross Foster who has been promoted to Head of Commercial affairs reporting to Cloeckaert. He will assume responsibility for all commercial issues facing international markets including pricing, campaigns and key account management.

Jim O'Neill, formerly General Manager of UM³, will assume an expanded role as Head of Operations for the new division, reporting to Cloeckaert. He will assume responsibility across the division for all financial matters, legal and business affairs, manufacturing, licensing, information systems and HR.

Commenting on the creation of the new division, Cloeckaert says, "I am confident that having commercial affairs and strategic marketing under one roof internationally will lead to even more integrated sales and marketing campaigns throughout UMI and will further strengthen relationships between the sales and marketing functions both in London and throughout the UMI Group."

TV Marketing projects include: Elton John Greatest Hits 1970 – 2002; Millenium III; Best of Stevie Wonder; Woman IV and The Who – The Ultimate collection.

Major forthcoming Catalogue projects include "The Rolling Stones Remastered" - the forthcoming re-issue of 22 digitally restored and remastered titles from the Rolling Stones, recorded between 1963 and 1970, including "Let It Bleed", "Their Satanic Majesties Request" and "Beggars Banquet."

Recent Commercial and Consumer Marketing successes include a pan-European campaign for the Audi TT, licensing Jimi Hendrix's "Third Rock From The Sun", in addition to deals with Marks & Spencer, Coca Cola, Starbucks, Ferrero and Ford.

Universal Music International

Universal Music International is a division of Universal Music Group; the world's leading music company with wholly owned record operations or licensees in 63 countries around the world. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations.

Universal Music Group consists of record labels Decca Record Company, Deutsche Grammophon, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, MCA Records, Mercury Records, Motown Records, Philips, Polydor, Universal Records, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalogue of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Strategic Marketing & Commercial Affairs (outside the US).

Universal Music Group is a unit of Vivendi Universal, a global media and communications company.

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