///Corporate

UNIVERSAL MUSIC RUSSIA'S DAVID JUNK ASSUMES RESPONSIBILITY FOR EASTERN EUROPE LICENSEE

MOSCOW, 23 APRIL, 2003 – David Junk, Managing Director of Universal Music Russia, is extending his management responsibilities to include Universal Music International’s licensees in the former Eastern Bloc. The new duties were announced today by UMI President and Chief Operating Officer John Kennedy, to whom Junk reports, and take effect immediately.

The Eastern European countries with licensees now within David Junk's remit are Bulgaria, Estonia, Latvia, Lithuania, Ukraine, Romania, Serbia, Slovenia and Croatia. In addition, UMI’s exclusive licensees in Iceland, Malta and Gibraltar are now accountable to him.

Junk will continue to manage Universal Music Russia, building on the worldwide success of t.A.T.u., the locally signed act developed in partnership with Universal Music Group’s Interscope Records. The female pop duo's single All The Things She Said has topped the charts in nine countries to date, while their 200km/H In The Wrong Lane album has sold 2.5 million copies globally. They are the first act from Russia to achieve this level of global success: 200km/H In The Wrong Lane recently hit No. 1 in Japan, making chart history there as the first international debut album ever to reach the summit.

Universal Music Russia has significant forthcoming releases from Russia's most successful female solo artist, Alsou, and a new male pop duo, Smash.

Junk, a native of Ohio, USA, in 1996 joined PolyGram (now Universal Music) Russia, the first western record company to establish a subsidiary in the country. He was promoted to Managing Director in April 1999.

"It has been a great joy and personal achievement to bring pop music from the former Soviet Union to the rest of the world,” said Junk, “and I eagerly look forward to helping create other musical bridges for the former Eastern Bloc countries. I truly believe that Eastern Europe is one of the most exciting and progressive repertoire centres in the music business today."

Thomas Hedstrom, former Vice President - Eastern Europe & Licensees, UMI, will leave the company on 30th April 2003.

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