///Corporate

MARCELO CASTELLO BRANCO APPOINTED PRESIDENT, IBERIAN PENINSULA

MIAMI, 5 February, 2003 - Marcelo Castello Branco has been appointed to the new position of President, Iberian Peninsula, with responsibility for Universal Music's operations in Spain and Portugal, with immediate effect.

Formerly President, Brazil & Southern Cone (Argentina and Chile), Branco will continue to report to Jesús López, Chairman, Universal Music Latin America / Iberian Pensinsula, and will now be based in Madrid.

Branco is a 20-year veteran of the music industry, who started his career with PolyGram Brazil in 1982 and subsequently held posts at Sony Music and Warner Home Video in that country. He returned to PolyGram and served as Managing Director in Chile from 1994-96. He was appointed President, Universal Music Brazil, in 1997 and President, Brazil and Southern Cone, in 2001.

Tózé Brito, Managing Director of Universal Music Portugal, now reports to Branco in his new post, as do Jose Luis de la Pena and Alicia Arauzo, Directors of the Local and International Divisions, respectively, of Universal Music Spain. The latter two appointments took effect on January 1, as part of the Spanish company’s new marketing structure, announced last month.

Commenting on the appointments, Jesús López said, "Marcelo has proven himself as a highly effective and versatile leader, with a range of experience across entertainment industry sectors and different companies. Under his leadership our Brazilian company has been number one for eight consecutive years. All this equips him well for the task of developing and expanding our business in Spain and Portugal, as the music industry goes through one of its most challenging periods."

Branco said, "I am always open for new challenges and particularly honored with this upcoming one. I am looking forward to work with the team in place and contribute to make both companies sources of repertoire even stronger".

An announcement on the appointment of a new President for Universal Music Brazil will be made in due course.

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