UNIVERSAL MUSIC GROUP TO SELL CD/DVD MANUFACTURING AND PHYSICAL DISTRIBUTION FACILITIES TO GLENAYRE TECHNOLOGIES
New York, New York, May 9, 2005...Universal Music Group, the world's leading music company, today announced that it has entered into an agreement with Glenayre Technologies to sell its CD/DVD manufacturing and physical distribution facilities in North America and Central Europe. These facilities include the company's plants in Hanover, Germany and Grover, NC, as well as three distribution centers in the United States and one in Europe.
In addition, Glenayre has acquired Entertainment Distribution Company (EDC), the firm founded by Jim Caparro in 2003. As part of this agreement, the Caparro-led EDC has entered into long-term contracts with UMG under which EDC will serve as the market-leader's manufacturer for CDs and DVDs in North America and Europe. EDC will use these facilities and their current employees as the core of its operation, thus making the transition orderly and seamless.
The members of the board of directors of Glenayre will serve as directors of EDC, specifically with Thomas Costabile and James Caparro serving as directors of EDC. Costabile will lead EDC as Executive Vice President and Chief Operating Officer. He will report to Clarke Bailey, who will serve as Chairman and interim Chief Executive Officer of EDC. Mr. Costabile has held numerous key senior management positions in the entertainment industry. During 2002 and 2003, Mr. Costabile was President of Warner Elektra Atlantic Manufacturing, responsible for its U.S. manufacture and distribution of CDs and DVDs. Prior to that, Mr. Costabile was Senior Vice President of Operations for Sony Music for five years where he was responsible for Sony's manufacture and distribution of CDs and DVDs.
"We are pleased to have reached an agreement with Glenayre that not only ensures our employees with an exciting new home, but will provide UMG with the highest quality of uninterrupted manufacturing and physical distribution services in the business," stated Doug Morris, Chairman & CEO of Universal Music Group. "Like many well run businesses, we are constantly seeking more efficient ways to operate. And this agreement will allow us to invest even more resources in such core functions as artist signings and development."
"This acquisition allows Glenayre to become a significant participant in the manufacture and distribution of entertainment products," commented Bailey. "The CD market recovered in 2004 after several years of decline due in part to significant progress made in battling piracy and illegal digital downloads. The sale of CDs is believed to be complementary to the growth of MP3 and iPod users, and new formats such as dual discs are predicted to contribute to increased demand for CDs. Universal Music is the largest music company in the world, and we are proud and honored to be their partner."
"My vision for EDC has not changed," added Caparro. "Universal's well managed facilities provide the perfect springboard to rapidly grow EDC into the premier manufacturer and distributor of entertainment products and services. Moving forward, we will actively seek new customers while expanding our services abroad."
James Caparro has been President and Chief Executive Officer of Atari, Inc. since November, 2003. Mr. Caparro brings over thirty years of experience in the entertainment industry. From September 2002 through 2003, Mr. Caparro was Chairman and Chief Executive Officer of Warner Elektra Atlantic ("WEA"). WEA was responsible for the sales, marketing, packaging, manufacturing and distribution of music, video and other intellectual property controlled by Warner Music Group. From 1998 through 2001, Mr. Caparro was the Chairman and Chief Executive Officer of Universal Music's The Island Def Jam Music Group, a company he founded through the integration of 14 record labels. Prior to this he was CEO of several PolyGram divisions including Group Distribution, PolyMedia, Video, Merchandising, Diversified Entertainment, New Media and Business Development.
About Universal Music Group
Universal Music Group is the world's leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, one of the world's largest music publishing operations.
Universal Music Group consists of record labels Decca Record Company, Deutsche Grammophon, DreamWorks Records, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor, Universal Music Latino, Universal Motown Records Group, 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 catalog of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, a new media and technologies division.
Universal Music Group is a unit of Vivendi Universal, a global media and communications company.
Glenayre is a global provider of next-generation messaging solutions and enhanced services for wireless and wireline carriers, and MSO/cable companies. Glenayre systems are designed on open platforms with a standards-based architecture supporting IP and traditional telephony networks for an evolution from 2G to 2.5G and 3G services. More than 200 service providers in over 60 countries have deployed Glenayre messaging solutions for voice, fax and e-mail messaging, including one-number services, voice navigation and voice dialing, mailbox out-dialing and one-button call return. Glenayre, headquartered in Atlanta, Georgia, has been providing carrier-grade communications solutions for the global market for over 40 years. For more information, please visit http://www.glenayre.com.