///Corporate

FONTANA TO DISTRIBUTE VH1 CLASSIC RECORDS

New York,October 31, 2006 - Fontana, the independent distribution arm of Universal Music Group, the world’s leading music company, has signed an exclusive distribution deal with VH1 Classic Records for the United States and Canada, it was announced today by Steve Pritchitt, Executive Vice President and General Manager of Fontana, and by Paul DeGooyer, Senior VP, Program Enterprises, MTV Music Networks & Logo.

The deal will be launched with the release of the KISS DVD box set “KISSOLOGY: Volume One 1974 - 1977” out on October 31st. The set consists of 6 hours of never before seen live & behind the scenes footage from the vintage early years with the original line up. The highlights of the package include 4 full concerts & many notorious television appearances. Volumes Two & Three will be coming out in 2007 along with many other VH1 Classic Records projects. “The launch of VH1 Classic Records through Fontana is exciting and unique” stated Ken Gullic, Senior VP of Sales & Marketing for Fontana. “Heritage and classic acts have legions of fans who are passionate about attending shows and visiting record stores. The artists know precisely who they are, and their fans know what they want. VH1 Classic Records clearly has no intention of diluting any of these projects through a modern filter. That we get to launch this with KISS and the monumental KISSology project is a stunning but awesome turn of events. As a card carrying member of the KISS Army, and with our pals at VH1 Classic Records, everyone’s making sure that this is a return to the glory days when KISS’ packaging and content were equally exciting! KISS actually broke through on Casablanca Records as an independent label, when no one else would have them, so this is really a natural fit. We get it, and we’ll honor this!”

“The mission of VH1 Classic Records is to extend and strengthen the connection that iconic acts like KISS still have with their fans,” said Paul DeGooyer, Senior Vice President, Program Enterprises, MTV Music Networks and Logo. “The great team at Fontana understands the power these acts have in the marketplace and have been nothing but passion about the KISSology series, which kicks off our VH1 Classic Records enterprise. We're very excited about our distribution partnership with them, and look forward to applying their expertise to additional VH1 Classic Records projects in the future.”

About VH1 Classic

Launched in 2000, VH1 Classic is a 24-hour network that presents music videos, concerts and music specials all day long, featuring the best rock, soul and pop artists from the 60s, 70s and 80s including The Beatles, The Stones, Tina Turner, Led Zeppelin, Marvin Gaye, The Who, Stevie Wonder, The Police and many more. Learn more at www.vh1classic.com.

About Fontana

Fontana Distribution, the independent arm of UMGD, provides unparalleled sales and marketing support, as well as back office services, for a diverse roster of labels and their artists. Fontana distributes more than 60 labels including Vagrant Records, Telarc, VP Records, American Gramaphone, Quango, Mad Science Recordings, Angeles Records, Nitro, SMC, Upstairs Records, Warcon, Rendezvous, Big Vin, Delicious Vinyl, Ipecac and many others. In addition, Fontana distributes select projects from UMG labels worldwide.

Black Friday