///Corporate

PHILIPS MUSIC GROUP HQ RELOCATES TO LONDON, MERGES WITH DECCA'S

LONDON, 28 JUNE 1999 -- Universal Classics & Jazz president, Chris Roberts, today announced that the worldwide head office of Philips Music Group is relocating from Amsterdam to the UK and will merge with The Decca Record Company’s headquarters in Chiswick, West London.

This will create a new umbrella company which will house the Decca label together with the Philips Classics, Point and Gimell labels which previously formed the Philips Music Group.

The new entity will be overseen by president Costa Pilavachi who has been president of the Philips Music Group since 1997 and who, in January of this year, was also appointed as president of the Decca Record Company.

Roberts said: "By integrating Philips Music Group with Decca, we are taking advantage of economies of scale while further focusing the creative side of our overall classical business, a strategy we began implementing three years ago in order to create a modern, flexible organization able to develop today’s diversified market. With Decca and Deutsche Grammophon, we go forward with two very powerful and complementary sources of repertoire."

Pilavachi said: "This merger guarantees the continued vibrant presence in the international marketplace of both the Philips and Decca labels, each of which has its own distinct artist and repertoire strategy. I am confident that the continued A&R and marketing strength of the new company will enhance our ability to develop further the great artists on our labels as well as attract new talent."

Decca’s artist roster includes Vladimir Ashkenazy, Cecilia Bartoli, Riccardo Chailly, Renee Fleming and Luciano Pavarotti. Philips Classics’ roster features Andrea Bocelli, Alfred Brendel, Valery Gergiev, Jessye Norman and Mitsuko Uchida. Decca and its sister label, Hamburg-based Deutsche Grammophon, together give Universal Classics a 40% and leading share of the global classical music market.

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