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CANAL+ U.S. TECHNOLOGIES JOINS UNIVERSAL MUSIC GROUP'S BROADBAND PROGRAMMING INITIATIVE TO TARGET INTERACTIVE TELEVISION

Companies To Develop Premium Music Programming for Deployment on MediaHighway Set-top Box Platform



Santa Monica, California, November 1, 2000 – Universal Music Group (UMG) today announced the addition of Canal+ U.S. Technologies to their broadband music program pilot partners. The first Universal Music Group offering to be ported by Canal+ U.S. Technologies to interactive television set-top boxes will be “The Viewing Lounge” (TVL), a program from UMG’s debut network of broadband music programs that allows viewers to create personalized, custom blocks of music video programming. When incorporated in set-top boxes, Canal+ U.S. Technologies’ MediaHighway* middleware creates an enhanced and interactive TV application with a content management backend solution that is designed to allow UMG’s music programming to be distributed to multiple platforms and environments. This partnership will give viewers the ability to watch and navigate, via remote control, full-screen TV quality music videos. “TVL” currently features new videos weekly, with over a hundred titles from artists including U2, The Wallflowers, Black Eyed Peas, Common, Dr. Dre, Eminem, Janet Jackson and LL Cool J.

“We’ve already broken new ground on the Web with our current broadband music pilot initiative, and it’s a natural step for us to be the first to explore the possibilities of digital television by working with Canal+ U.S. Technologies,” said Larry Kenswil, President, Universal Music Group’s eLabs. “This new collaborative effort with Canal+ U.S. Technologies is part of Universal’s commitment to leading the next wave of the technological revolution.”

“We are pleased to work with the world’s leading music company as they begin to target digital television as a channel for their quality content,” said Jean-Marc Racine, CEO, Canal+ U.S. Technologies. “This initiative illustrates our corporate strategy of enabling interactive television through premium content offerings in the U.S. We believe our successes in Europe were built on close collaborations with leaders from the content and programming industries. It’s a formula we hope to replicate with Universal Music Group as we target quality content for network operators in the U.S.”

Canal+ U.S. Technologies is the first ITV software company to join a group of technology companies participating in UMG’s broadband programming initiative including RealNetworks, Microsoft, Apple; select DSL, ISP and cable providers, Excite@home, Road Runner, SBC, Sprint and Winfire; high-performance streaming media provider, Akamai; and integrated content management solution, iKNOWLEDGE.

About Canal+ U.S. Technologies

CANAL+ U.S. TECHNOLOGIES, a subsidiary of Paris-based CANAL+ TECHNOLOGIES, SA, offers a wide range of field-proven and flexible digital and interactive TV systems currently deployed in approximately seven million set-top boxes from more than 20 major consumer electronics manufacturers. Its product line includes conditional access software MEDIAGUARD*, hardware-independent interactive system and middleware MEDIAHIGHWAY*, as well as over 30 different interactive and multimedia applications and several integrated development environments.

A wholly-owned subsidiary of CANAL+, one of Europe’s largest pay-TV providers with 14 million subscriptions, CANAL+ U.S. TECHNOLOGIES also designs and implements digital broadcasting infrastructures for its clients and is a integrator of digital cable, satellite, and terrestrial platforms such as AT&T (formerly MediaOne) in the U.S., ONdigital in the UK and CANALSATELLITE in France.

About UMG eLabs

eLabs is a division of UMG exclusively dedicated to exploring, developing, and evolving global business and new technology strategies. It houses an incubation group to develop new businesses internally, which can then be migrated to either existing operating units or new stand-alone divisions, Universal eLabs also includes comprehensive marketing and consumer research and a business development team to support all of UMG’s online businesses.

About Universal Music Group

Universal Music Group is the world's leading music company with wholly owned record operations or licensees in 63 countries around the world. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations.

Universal Music Group consists of record labels A&M Records, Decca Record Company, Deutsche Grammophon, Geffen Records, Interscope Records, Island Def Jam Music Group, Jimmy and Doug’s Farmclub.com, MCA Nashville, MCA Records, Mercury Records, Motown Records, Philips, Polydor, Universal Records, 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 UM3 (outside the U.S.).

Universal Music Group is a unit of The Seagram Company Ltd., a global entertainment and spirits and wine company.

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